PERFORMANCE MANAGEMENT

“PERFORMANCE APPRISAL IN BAJAJ ALLIANZ LIFE

INSURANCE CO. LTD”

PROJECT REPORT

SUBMUTTED BY:
SUMI MURUGAN P K
ROLL NO: 52
5th Trimester

SUBMITTED TO:
DR.BINDU ANTO
MBA DEPARTMENT
MES College of engineering

Department Of Management Science

M.E.S COLLEGE OF ENGINEERING

February 2019
Company Profile
 COMPANY PROFILE
Mission: To become a responsible customer focused market leader. We still
strive to understand the insurance needs of the consumers and translate it into
affordable products that deliver value for money.

Vision:

 To be the first choice insurer for customers.

 To be the preferred employee for staff in the insurance industry.
 To be the number one insurer for creating shareholder value.

Bajaj Allianze Life Insurance

 Is the fastest growing private life insurance company in India.

 Currently have over 300000 satisfied customers.
 Have Customer care centers in 156 cities with 28000 Insurance Consultant providing the
finest customer service.

Bajaj Allianz General Insurance Company Limited is a joint venture between

Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a reputation of
expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and

Development Authority (IRDA) certificate of Registration (R3) on May 2 n d , 2001
to conduct General Insurance business (including Health Insurance business) in
India. The Company has an authorized and paid up capital of Rs.110 crores.
Bajaj Auto holds 74% and Allianz holds the remaining 26%. AG, Germany.

In its first year of operations the company has acquired the NO. 1 status among
the private non-life insurers. As on 31 s t March 2003, Bajaj Allianze General
Insurance maintained its leadership position by garnering a premium income of
Rs.300 Cores. Bajaj Allianze also became one of the few companies to make a
profit in its first full year of operations. Bajaj Allianz made a profit after tax of
Rs.9.6 crores.
Bajaj Allianze today has a network of 40 offices spread across the length and
breadth of the country. From Surat to Sliliguri and Jammu to
Thiruvananthapuram, all the 38 offices are interconnected with the Head Office
at Pune.

In the first half of the current financial year, 2004-05, Bajaj Allianz generated a
premium income of Rs.405 crores, achieving a growth of 84% and registered a
52% growth in Net profit of Rs. 20 Crores over the last year for the same period.
In the financial year 2003-04, the premium earned was Rs.480 Crores, which is
a jump of 60% and the profit zoomed by 125% to Rs. 21.6% Crores.

Shareholders & Promoters

Bajaj Auto Limited

Bajaj Auto Limited is the largest manufacturer of two and three-wheelers
in India and also one of the largest manufacturers in the world. Bajaj Auto has
been in operation for over 55 years. As a promoter of Bajaj Allianz General
Insurance Company Ltd., Bajaj Auto has the following to offer:
 Vast distribution network.
 Knowledge of Indian consumers.
 Financial strength and stability to support the insurance business

Allianz AG, Germany

Allianz Group is one of the world's leading insurers and financial services providers.

Founded in 1890 in Berlin, Allianz is now present in more than 70 countries with
over 177,000 employees. At the top of the international group is the holding
company, Allianz AG, with its head office in Munich.

Allianz Group provides its more than 60 million customers worldwide with a
comprehensive range of services in the areas of
 Property and casualty insurance,
  Life and health insurance,
 Asset management and banking.

In fiscal year 2005, Allianz's total revenues amounted to some 100.9 billion
euros. At the end of 2005 Allianz Group had more than 1.26 trillion euros in
assets under management. Of this, 743 billion euros were assets managed for
third parties.
 Introduction of Topic

From immemorial time, man has continuously assesses their capability with others. This
urge to do better has resulted in his continuously evolution which is vital for the growth of any
business. Performance Appraisal (PA) is one such tool to measure the performance of an
employee. Employee performance appraisal is an effective way to determine the performance
of the employees in an organization. Performance Appraisal (PA) is mainly used to determine
the wage increase, promotions, transfer and layoffs, termination of services & the training and
development to the employees in an organization. It serves as a tool to determine the future of
the organization and visualize the career growth of the employees.

Performance Appraisal (PA) is normally done by senior executives and the senior
manager in the organization to appraise the employee for their performance and also to find
out difficulties while meeting their goals. During this period of carrying out the process the
appraiser faces the problem in rating the subordinate/employee/peer and sometime they may
rate their subordinate wrongly, which will block the whole purpose of the appraisal system.

From user testing, the traditional appraisal system found to be efficient in the issues like:
it help to evaluate the true abilities of employees, help employees to understand organizational
goals, and to provide fast and effective feedback. The users found the system easy to
understand and use and were more satisfied with the overall effectiveness of the system.

The main focus of the study of this is to identify the areas in Performance Appraisal System
that would help in the organizational development. Every organization has made it mandatory
to have this appraisal done once in a year to measure their employee performance. Hence,
there should be well-defined appraisal procedure which is properly used to evaluate
employee’s performance. This study report aims at covering all aspects related to
performance. In order to make this report comprehensive, sample appraisals are also provided.
This study was conducted at bajaj allianz life insurance co. ltd, new delhi

The objective of the questionnaire was to obtain employees’ opinion on performance appraisal
(PA) system in their organisation.
The Structural questionnaire prepared for HR survey comprised of two parts:

 First part regards the “demographic” of the respondents, asking their name, designation,
qualifications and department in the company (Vice President, Senior HR consultants,
Business Development Executive), their tenure with the organisation and total experience.

The demographic characteristics of the respondent group were as follows. There is Vice
President who has experience of work since 15 years in the organisation, Senior HR
consultants who work experience of 1-5 years experience, Business development executive
who work experience of 0-1 years.

 Second part of the questionnaire consisted of “quantitative and qualitative statements”.

In order to identify importance of the factors in determining.
OBJECTIVES OF THE PROJECT

The basic objectives of this project is:

 To find out present performance appraisal system used in

the company.

 To find about the employees views for the system

adopted by the company to appraise their performance.

 To know about the working scheme of the company.

 To suggest some measures for improving the methods to

appraise the performance of the workers.
Literature Review
 Performance Appraisal

What is Performance Appraisal?

“Performance appraisal is a systematic and objective way of judging the relative worth or ability
of an employee in performing the task. Performance appraisal helps to identify those who are
performing their assigned tasks and those who are not and the reasons for such performance.”

Modern Appraisal:-

Performance appraisal may be defined as a structured formal interaction between a

subordinate and supervision , that usually takes the form of a periodic interview (annual or
semi annual), in which the work performance of the subordinate is examined and discussed
with a view to identifying weakness and strengths as well as opportu- nities for improvement
and skills develop- ment.

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

By the same token , appraisal results are used to identify the poorer perform- ers who may
require some form of counseling , or in extreme cases ,demotion, dismissal or decreases in
pay . (Organizations need to be aware of laws in their country that mi- ght restrict their
capacity dismiss employees or decrease pay).Whether this is an appropriate use of
performance appraisal – the assignment and justification of rewards and penalties – is very
uncertain and contentious matter.
Performance appraisal is used for :-

1. Identifying employees for salary increases , promotion , tran- sfer and layoff or
termination of services.
2. Determining training need for further improvement in performance.
3. Motivating employees by indicating their performance levels.
4. Establishing a basis for research and reference for personnel decisions in future.

Goals of the Performance Appraisal System:-

For supervisors, the process of performance management is one of the most import- ant
leadership responsibilities. The performance appraisal syatem has three primary goals:-

1. To provide a formal means of constructive, open and honest com- munication

between the employees and his/her supervisor.

2. To enhance employee development through performance feedback and through the

identification of future professional development activities.

3. To measure and document job performance as a basis for making prom- otion,
compensation and other personnel management decision.
Who Should Conduct the Appraisal?

The individual (superviser) who has the authority to make hiring recommendations and to
assign work to the employee should be the person responsible for completing the appraisal.
Supervsors who donot directly observe or otherwise measure the outcomes of a given emp-
loyee’s job performance should seek input from individuals who do directly observe the
employee (eg.A crew leader, group leader, area co-ordinator, and other workers). This may
be the case, especially in larger departments/units. It’s the responsibility of department/unit
heads and supervisors to prepare written performance appraisal and to conduct timely
appraisal meetings. If a given supervisor should delay or neglect to conduct an appraisal, the
affected employee is encouraged to initiate such or may contact the Department of Human
resources for assistance.

The Performance Appraisal Process

The figure outlines the performance appraisal process. Each step in the process is crucial and
is arranged logically.

Objectives of
Performance Appraisal

Establish Job
Expectations

Design an
Appraisal Program

Appraise
Performance

Performance
Interview

Use Appraisal Data for Performance Standard and

Appropriate Purpose
Goals

Performance standards and goals are the basis from which employee performance is
measured. The written performance appraisal should reflect how well the employee performed
against defined job responsibilities and previously established goals and objectives. Effective
goals and objectives must be specified, measurable and reasonable and have a time frame.

 Specific: - Objective and precise language is essential when developing performance

goals and objectives. Supervisors should use terms and descriptions, which have the
same meaning to the supervisor and the employee. Detailed points rather tan vague
descriptions are important for understanding and documentation.

 Measurable: - Goals and objectives should be written so that accomplishment or

degrees of accomplishment can be objectively measured.
  Reasonable: - Goals and objectives which are too high or rigid may actually
inhibited an employee`s performance. Individuals may become discouraged and give
up if perceive expectations to be unattainable. Goals and objectives should be
reasonable given time frames, circumstances and departmental/unit expectations.

 Time frame: - A specific period of time for accomplishment should be identified with
each goals and objectives.

Instructions for using performance appraisal system

The performance evaluation system is used to evaluate employees past work performance,
develop a work plan for the next review period and determine what resources are needed for
improving performance to become more effective. Evaluations also develop employee’s
potential through training and counseling. The process is designed to be interactive between
the employee and the superv-isor with the following objectives in mind:

 Use to recognize and reward employees for positive work beha- vior. Use the results
as a basis for appropriate personnel actions.
 Encourage employees to continuously improve, support team endeavors, develop
professionally and perform at their maximum potential.
 Communicate and clarify the goals and objectives of the division, department and
the City in relation to the employees` work expec- tation
 Involve employees in improving their effectiveness and perform- ance.
 Provide an employee improvement plan where performance is rated below
standard.

Performance Evaluation System :

The performance evaluation form is used for all performance reviews. This includes
probationary evaluations ( expect Police and Fire have their own process), annual evaluation
and special evaluation for reg -ular full time and regular part time employees. The evaluation
periods are generally twelve months, expect for special evaluations, which may be for shorter
periods of time. Merit step increases are conducted on the employees` anniversary date
(assuming satisfactory performan- ce) and not during the annual performance review.
Supervisor Responsibility :

Each department will conduct employee evaluations for all employees in the department during
the same month. Human resources will notify department heads 30 days prior to when
evaluations are due. Each supervisor completing the performance evaluation should review the
following instructions, the rating criteria definitions and familiarize him or herself with the
procedure prior to competing the evaluations. Upon completion of the evaluation form by the
supervi- sor (rater) and the reviewer (one level above the rater), then the rater will meet with
the completed form for signatures. Supervisors should provide written comments on the
evaluation form for each performa- nce criteria and list specific examples. Use N/A if the
rating criteria are not applicable. The supervisor is responsible for completing the evaluation
process at the beginning of the rating period and again at 6 month to monitor progress and
adjust time lines if necessary. At that time, a new 12-month work plan is established with the
employee and the process repeats itself. Supervisors shall coordinate the discussion of
performance evaluations with employees in a manner that allows privacy. The supervisor
shall have the employee to complete the Self Performance Evaluation Form as a discussion
tool.

Forms:

There are two performance evaluation forms which you will always use:

 The actual performance evaluation form which includes the cover page called the
Summary Worksheet.
 The Employee Self-Evaluation form.

There are two other forms you may need to use:

 The Performance Improvement Plan form (used when a rating is #1

Unacceptable or #2 Improvement needed), and attached to Performance
Evaluation form.
 Performance Goals form (used by department to follow up mid-year on goals set
in evaluation), optional and not returned to Human Resources.
Evaluation When A New Supervisor is Appointed :

If the employee has an evaluation due and supervisor is appointed, the new supervisor likely
has not had the opportunity to properly evaluate the employee`s performance. In this instant
the new supervisor will evaluate the employee after 90 days. If possible, the supervisor that is
leaving will do a close out evaluation for his/her employees prior to leaving.

Steps to complete the annual performance evaluation procedure:

Step 1: Notice to department heads: human resources will notify department heads 30 days
prior to when performance evaluations are due for full time and part time regular employees in
their department. Managers/supervisors have 30 days to complete the performance
evaluations, obtain signature and provide the original the human resources office for filling in
the employees personnel file .The supervisor shall also retain a computer copy/file copy for the
midyear review process. Human resources will remind supervisors to schedule probationary
evaluations on their calendar.

Step 2: Blank performance evaluation forms: managers/supervisors obtain the performance

evaluation forms.

Step3: Review job description; review the employee’s job description to see if any changes are
necessary. If there are increased responsibilities /scope of work or a change in qualifications
forward your edits to human resources for review. Minor differences in workload or added
assignment that are industry or technology changes do not require a change to the job
description. (Individual employees do not amend their job descriptions; this task is for the
manager)

Step 4: Self evaluation form: provide a copy of the self evaluation form to the employee.

If the employee does not want to complete the form, he/she shall check the box and sign at
the bottom of the form and return it to the supervisors . This completed form is used as a tool
for discussion while the supervisors is completing the employees’ evaluation .
Step 5: Complete the performance evaluation rating forms: The managers /supervisors
complete each section in performance evaluation forms (page 2-3plus). If a section does not
apply note N/A for not applicable. Written comments are required and should include examples
that support the rating the specific job element. Section 1to 3(Technical knowlwdge, customer
service and quality/quantity of work) apply to all positions. For section 4(Attendance), the
supervisors should review the employees attendance record, scheduled time away from the job
and use of breaks. Section5 (Safety and Risk management) applies to all jobs and should
include notice of any accident, injuries, equipments usage or other safety related issues.
Section6 is only for department heads, managers, supervisors and lead workers. Next,
complete the section work plan for the next rating period completion date. This list achievable
goals and projects as well as areas to improve upon. Next, complete the training and
development section. The raters the complete the summary worksheet cover pages for the
evaluation form. This is done last and is and over all rating considering all the rating sectors.

The performance goal forms(optional based on department head discussion is a departmental

tool used during the midyear review o monitor progress, completion date or makes comments
concerning the goals. keep goals to a realistic number (3 to 5) and ones that are achievable
we all have a tendency to put down more goals that we can reasonably achieve.

Also some employees in entry level job may have only 1 or 2 goals or a training course to
complete during the review period the supervisor should used their judgment and discussion
their employees to arrive at goals for the work
Plan .

Step 6: “Unacceptable or Improvement Needed” Rating: If y rate an employee with a “1”

Unacceptable or “2” Improvement needed, you must complete the performance improvement
plan form. Have this completed form reviewed by the department head and Human Resources
prior to presenting it to the employee. This form is used to document performance and
behavior problems that need corrective action. Documentation is critical for this type of rating.

Note in the event the employee does not improve, the documentation is important for corrective
action. The notice of “Improvement Needed” or “unacceptable” rating must include:
 The problem areas of performance that are determined to be unacceptable.
 Identify performance standards that must be achieved to meet acceptable standards.
 Provide a reasonable period of time demonstrate improved performance.
 Provide assistance to help them achieve the performance standards (training, counseling
and coaching, closer supervision, feedback).
 Communicate with employee of the consequences if their performance does not improve
and provide a deadline, such as 30-90 days for a follow up review. However, this time line
does not preclude immediate disciplinary action at any time by department head if the
employees` performance worsens during the rating period.
 A rating of #1 shall be reviewed and approved by the department head before being
communicated to the employee.

Step 7: Mid-year Review: Mid-point through the 12-month rating period, the manager or
supervisor will meet with the employee to review his/her progress. This does not require any
new information to be prepared, merely review their performance, goals and deadlines with
the employee. At this step, you may adjust the deadlines as necessary.

Use of Books and Software for Performance Appraisals

There are number of low cost paperbacks that can b handed out to the managerial staff to help
them with their appraisals.
Since the advent o the use of computers, a number of educational organizations are now using
Performance Appraisal software.

Performance now Enterprise is a software tool for logging events, tracking goals, providing
effective feedback and writing employee reviews that maximize the potential of your team.
Flexible enough to adapt to your present review system,
Performance now helps you become a better manager and get the best from your employees.
For a little more upscale package Performance Impact Workplace is easy to use to set goals
for employees, but are having trouble following up on those goals.

Other software such as The Administrative Observer for school systems is one of the more
configurable stand-alone database package, with an intuitive graphic interface, geared towards
the business environment is MINDSOLVE (MVP). MVP is designed as an enterprise level
performance management software, incorporating appraisal, development resources, 360
degree feedback, performance logging, etc. While the use of configurable software based tools
are certainty making life easier, the use of such tools are much more valuable.
Research Methodology
a) Statement of the Problem

Every business organization large or small spend huge amount of money on Human Resource.
It is necessary therefore to find out how they are performing in order to design their future of the
organization. It may be to develop the employees or to correct the employees or to utilize
employee’s strength.

This study is directed towards probing Performance Appraisal system as tool for employees at
BAJAJ ALLIANZ LIFE INSURANCE.

b) Types of Research-

There is social research in a HR Survey with particular reference to Performance Appraisal as

a System for employees at BAJAJ ALLIANZ LIFE INSURANCE

 Sample Design:

It is random sampling techniques where the samples were designed based on the
nature of work, qualification, experience, etc.

 Sample Size:

20 Employees Respondents

 Tool for collection of Data:

Structured questionnaire is used to collect the data. Copy of questionnaire is placed at

the Annexure of the project report.

 Method of Collecting Data:

 The questionnaires were floated to respondents through Researcher where the data
was collected and returned by HR Unit.

 Method of Analysis:

1. The collected data were tabulated

2. Percentage of respond was worked out

3. Analysis is based on percentage frequency

4. Weight age is given to high percentage in response factor

5. Evaluation is made based on the analysis and the presumptions inherences are
used, where every data is ambiguous. Definitive evaluation is made every data is
clear.
Findings, Analysis and Discussion
Findings, Analysis and Discussion

Key findings-

The following key findings are found while performing HR survey for identifying the
impact of Performance Appraisal (PA) system:

 BAJAJ ALLIANZ LIFE INSURANCE follows two types of Appraisal process - Graphic
Rating Scales and Behaviorally Anchored Rating Scaling (BARS) which is user-friendly
and easily accessible within the organization.
 Feedback is given to the employees about their performance.
 Promotions schemes exist in the organization according to the employees’
performance.
 It captures an individual’s strengths, improvement areas & also captures training
courses recommended.
 Performance Appraisal process will start on time and process will be conducted as per
the appraisal period.
 There is a fixed schedule to meet listed in detail at beginning of the process.
 The process assessment is fair and justified with business units.
 It is objective process, measuring an individual is fair but the metrics are
inadequate.
 Across business units does not yield right results.
 There are some issues with performing employees not getting proper result of the
appraisal.
 Process is clear to express as an individual his strengths and capacity.

 It gives an opportunity to show case his achievement.

 It helps to understand the required capacity to meet requirements.
 A Performance Appraisal system tools should be based on assessment of work
performance not personality.
 A Performance Appraisal system tools should be kept as simple as possible while
meeting objectives.
 Detailed orientation will be given at all level at beginning of the performance
appraisal process.
 Various training programs are available and discussed with superiors.
 Sometimes process will be failed due to some internal problem after getting
orientated on the performance appraisal system.
 Feedback session involved revisions of individual’s accomplishments during the
appraisal period. His/her strengths, improvement areas and training and
development.
 More time will be spent if one employee worked under different managers for
assignments.
 It is necessary to now the earlier manager’s feedback on the employee to assess
properly.
 In Performance Appraisal includes Quantitative and qualitative measures.

 It will clarify organizational goals and expectations.

 It provides a mechanism for improving communication between workers and

superiors.

 It will decide upon future work requirements and objectives.

 By this employee can discuss ideas, comments and suggestions.

 Develop an action plan for indentifying strategies which will make it possible for the
employees to achieve the objective discussed.

 Performance Appraisal should be developed and implemented in consultation with

employees and superiors.

 Performance Appraisal should operate equitable throughout the organization.

 Promotions, salary revisions can be dealt during annual appraisal.

 Group work and team work exist in an organization.

 Majority of the executives give reasons for not completing their targets.

 Review and reset of the task is not made uniformly.

 Conclusions

Most of the time Performance Appraisal (PA) for determining compensation increases, training
need identification and for promotions. The Performance Appraisal has delinked itself from
being an instrument of evaluating performance in the organization. Application of performance
and bringing about better performance management practices that enables organization to
improve their performance and bring in a performance driven culture is the need of the hour
rather performance appraisal only.

No Doubt without the commitment of the top management it would just be very difficult to bring
this sort of change. This in fact calls for a cultural change where in emphasis is not only given
to the Outcome or the end result but also on the process and effort made to achieve the result.
While discussing of the process & effort we need to focus on the leadership style, his approach
of consulting others, his ability to learn, his approach as a team member, his effort in planning
his days and week, and his overall orientation for subordinates development. All this really calls
for a different ball games wherein the concerned supervisors are able to emphasize with his
sub-ordinates and is really above to understand his emotional world.

In this era where every individual is competing with each other and where very tight schedules
are drawn without much scope for slippages, there is every probability that conflicts are going
to become a common affair. As such is has become all the more important that a supervisor
makes all out effort to understand emotional world of the sub-ordinate in terms of his hindering
and facilitating factors in terms of achieving his goals, what help the person growth and his own
ambition in the next 3-4 years, what is happening on his family front.

All this shall only happen if the sub-ordinate is able to see value and a genuine concern in all
this. For this what can be done is that once in a month an effort can be made by the supervisor
to sit his sub-ordinate to sit with his sub-ordinate and have a face to face interaction in a non
threatening atmosphere. What I have personally observed that it charges the motivation level
of an individual considerably and in fact the employee makes all out effort to achieve the
Organizational goals.