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INDEX

S.NO TOPIC NAME PAGE NO.

1 CHAPTER- I 1-33

1.1 INTRODUCTION 2

1.1.1 NEED OF THE STUDY 3

1.1.2 OBJECTIVE OF PERFORMANCE APPRAISAL 4

1.1.3 SCOPE OF THE STUDY 5

1.1.4 LIMITATIONS OF THE STUDY 6

1.2 RESEARCH METHODOLOGY 8

1.3 REVIEW OF LITERATURE 15

2 CHAPTER-II 34-72

2.1 INDUSTRY PROFILE 35

2.2 COMPANY PROFILE 44

2.3 DATA ANALYSIS & INTERPRETATION 60

3 CHAPTER-III 81-90

3.1 FINDINGS& LIMITATIONS 82

3.2 SUGGESTIONS 83

3.3 CONCLUSION 84

3.4. BIBILOGRAPHY 85

3.5. GLOSSARY 86

3.6. ANNEXURE 87
CHAPTER 1

1.1 Introduction
1.2 Research methodology
1.3 Review of literature

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INTRODUCTION TO PERFORMANCE APPRAISAL

1.1 INTORDUCTION FOR THE STUDY :

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.

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1.1.1 NEED OF THE STUDY:

❖ To create and maintain a satisfactory level of performance.


❖ To provide information making decision for rewardingly of retrenchment etc.
❖ 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 their scores with performance appraisal ranks.
❖ To facilitate fair and equitable compensation based on performance.
❖ To help the superiors to have proper understanding about their subordinates.

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1.1.2 OBJECTIVE OF PERFORMANCE APPRAISAL:

Providing basis for Promotion / transfer /termination and identifying those subordinate who
deserves promotions or require lateral shift.

• Helping employees to identify his strength and weakness and informing him as to what
performance is expected from him, would go a long way in making him understand his role well,
and he is likely to be more effective on the job. The feedback reinforces good performance and
discourages poor ones.

• Identifying Training and development need of employees to prepare them for meeting challenge
in their current and future employment.

• Counseling Employees corrects misconceptions, which might results in work alienation.


Performance Appraisal also helps employees to internalize the norms and values of the
organization.

• Identifying and removing factors responsible for workers discontent and motivate them for better
work performance.

• Performance Appraisal helps in creating a positive and healthy climate in the organization.

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1.1.3 SCOPE OF THE STUDY:

The scope of any performance appraisal should include the following:

1) Provide employees with a better understanding of their role and responsibilities;

2) Increase confidence through recognizing strengths while identifying training needs


to improve weaknesses;

3) Improve working relationships and communication between supervisors and


subordinates; increase commitment to organizational goals;

4) Develop employees into future supervisors;

5) Assist in personnel decisions such as promotions or allocating rewards;

6) Allow time for self-reflection, self-appraisal and personal goal setting.

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1.1.4 LIMITATIONS OF THE STUDY:

Some of the major limitations of performance appraisal are: 1. Bias of Appraiser 2.


Ambiguity in Standards 3. Insufficient Evidence 4. Several Qualities Remain Without Appraisal 5.
Leniency or Strictness Tenancy 6. Average Rating Problem 7. Influence of Man’s Job and 8.
Similarity Error.

1. Bias of Appraiser:
The presence of ‘Halo Effect’ in evaluation of employees is the biggest weakness of this
method. A high rate is given to favored employees whereas unfriendly employees are rated low.

2. Ambiguity in Standards:
If the standards are not clear, the supervisors may follow different standards for different
employees.

3. Insufficient Evidence:
An employee who can impress the boss may get a positive evaluation though his impression
in his own department may be very poor. In such cases, the performance appraisal will be
superfluous.

4. Several Qualities Remain Without Appraisal:


Through performance appraisal, only few qualities of employees can be measured. All
individuals differ from each other in terms of background, values and behavior.

5. Leniency or Strictness Tenancy:


Every evaluator has his own valuation procedure which is regarded as his own standard for
evaluation. For example, some teachers are strict in evaluation of answer books whereas others are
lenient. The lenient tendency is known as ‘Positive Leniency Error’ whereas strict tendency is called
as ‘Negative Leniency Error’. The rating may be high or low depending upon the nature of
evaluators.

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6. Average Rating Problem:
In order to give very low or very high rating, the top managers are required to give reasons
to justify the rating. The most common error committed in performance appraisal is to give average
rating to all employees. Moreover, low rating antagonizes the subordinates.

7. Influence of Man’s Job:


There is a tendency to give a high rating to highly paid jobs. So a senior employee may get
a higher rating than a junior employee.

8. Similarity Error:
The evaluator tries to look those qualities in subordinates which he himself possesses. Those
who show the similar characteristics are rated high.

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1.2. RESEARCH METHODOLOGY:

Methodology is a way to systematically solve the research problems. It explains the


various steps that are generally adopted by a researcher in studying the research problem with
logic behind them.

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

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d) Determining Primary Data Collection Methods

e) Developing Questionnaires

f) Determining Sampling Plan

(1) EXPLORATIVE RESEARCH DESIGN:

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 RESEARCH DESIGN:

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 Hyderabad Telagana

Duration = 6 weeks

RESEARCH PROBLEM

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


training project.

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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 an interviewer.

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

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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.

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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 sampling technique.

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 sampling in 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.

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

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

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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 my project.

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1.3. REVIEW OF LITERATURE

PERFORMANCE APPRAISAL

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.

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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 of others.

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 their present


jobs.
b) Highlighting employee needs and opportunities for personal growth and development.
c) Promoting understanding between the supervisor and his subordinates.
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
the enterprise.

“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”

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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.

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 result produced
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 highest gain
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 skills knowledge.

METHODS OF APPRAISAL

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

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❖ 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

METHODS OF PERFORMANCE APPRAISALS

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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/no
pattern.

❖ 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

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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’s performance
b) The promo ability of the employee
c) The jobs that the employee is now able or qualified to perform
d) The strength and weaknesses of the employee and the traning and the development assistant
required the employee.

❖ Comparative Evolution Approaches


These are a collection of a different methods that compare one worker’s performance
with 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 it into-

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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 APPRAISALS

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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 own performance
.
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:-

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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.

THE POST APPRAISAL INTERVIEW

This interview provides the employee the feedback information, and an opportunity to the
appraiser to employee his rating, the trail and behavior he has taken into consideration etc.

Further it helps both the parties to review standards, set new standards based on the reality factors
and helps the appraisal to offer his suggestion, help, guide and coach the employee for his
advancement.

Thus, the post appraisal interview is designed to achieve the following the objectives.

• To let employee know where stand


• To help employee do better job by clarifying what is expected of them
• To plan opportunities for development and growth
• To provide an opportunity for employees to express themselves on performance related
issue.
Thus, post appraisal interview is most helpful to the employee as well as his
superior.

KEY ELEMENTS OF PERFORMANCE APPRAISAL SYSTEMS

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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 indicates 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 indicates 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:-

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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 indicates how well the human
resource function is performing.

STAGES OF PERFORMANCE APPRAISAL PROCESS

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• PERFOMANCE STANDEARDS ARE ESTABLISHED
1

• INFORM THESE STANDARDS


2

• INSTRUCTION GIVEN FOR APPRAISAL


3

• FINDIND OUT THE INFLUENCE


4

• COMPARING THE PERFORMANCE


5

• FINDING OUT DEVIATION


6

• COMMUNICATING, THE ACTUAL PERFORMANCE


7

• SUGGESTING NECESSARY CHANGES


8

• FOLLOW-UP OF PERFORMANCE APPRAISAL REPORT


9

Performance Appraisal is a Nine-Step Process:-

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❖ At the First stage, performance standards are established based on job description and job
specification. The standard should be clear, objective and incorporate all the factors.
❖ The Second stage is to inform these standards to all the employees including appraisers.
❖ 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
actual performance.
❖ 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 discusses with him the reasons for positive or negative
deviations from the preset standards as the case may be.
❖ The Eighth stage is suggesting necessary changes in standards, job analysis internal and
external environment.
❖ 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 the employee.

PROBLEMS OF PERFORMANCE APPRAISAL

The major problem in performance appraisal:-

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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

a) 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 another trait.

b) 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.

c) 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: -

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

e) The Recency Effect:-

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 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 the helper.
2) Too many objectives often cause confusion.
3) The supervisor feels that subordinate appraisal is not rewarding.
4) A considerable time gap exists between two appraisal programs.
5) The skills required for daily administration and employee development are in conflict.
6) Poor communication keeps employees in the dark about what is expected of them.
7) There is the difference of opinion between a supervisor and a subordinate concerning the
liter’s performance.
8) Feedback on appraisal is generally unpleasant for both supervisor and subordinate.
9) Unwillingness on the part of supervisor to tell employee plainly how to improve their
performance.

About Employee:-

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❖ 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?

PERFORMANCE MATRIX

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In principle the individual performance matrix (IPM) can be notionally divided into two parts-:

➢ Team matrix
➢ Individual Matrix

KRA (KEY RESULT AREA) 1 to 5

❖ For achievement of the set targets, the prescribed credit points would accrue to all team
members for the team performance and to an individual for the individual performance.
❖ Any drop / deviation from the targets will lead to ‘ Debit ’ to while the overall debit points
for the negative variance vis-à-vis has been prescribed for the team the individual will be
liable to the lose additional points bin case of direct responsibility for deviation.
❖ These ‘debit’ points will be determine depending on gravity of error, quantum of loss,
extraneous/ inhibiting factors, etc. as a part of
appraisal process.

KRA 6

It is intended to cover every individual distinguishing contribution/ efforts made in respect of


either assigned projects or innovations, cost saving measures value additions etc. this has been
specifically design to acknowledgement and reward individual excellence.

KRA 7

(Health. Safety/fire, Environment) “Debit” will apply to an individual and his superiors but
his not peers / others who may not be connected with the safety incident. Similarly there is
scope to earn separate credit points for an individual through safety suggestion and reporting
of “near misses” and unsafe acts/ conditions/

KRA 8

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(Training and HR) this is intended to cover self training, training of subordinates, for the
training programs organized by learning centre are HR based on individual need assessment
of self & subordinates.

These also include quarterly review, counseling and maintaining of performance diary.

KRA 9

(Quality System & Documentation) this include proper maintenance of each and every
documents of ISO 9000 and 14001 for surveillance audits, also revision of SOPs / SOCs
decided by the plant.

KRA 10

(Industrial Relations ) there is a scope for a team to earn separate credit points based on the
number of implement suggestions. In this case the team means the concern immediate
supervisor, production / department manager and plant manager.

Performance Diary

The performance diary is a meant to track / capture the significant performance events
whether positive or negative (Credit or Debit). This is also the tool for recording the personal
contribution in terms of innovative ideas, suggestions, cost saving efforts etc.

The filling up the performance diary is most critical and important aspect on which the entire
system rests. Each and every individual has responsibility to highlight ‘event’ in the performance
diary, timely and properly.

While for an individual on the other hand, it may mean establishing clear responsibility for
a fault/formal operation / misjudgment etc. on the other hand it will mean recording of credits
worthy efforts / contribution which may otherwise go unnoticed. It is also essential to mention the
impact of the incident in the terms of beneficial and detrimental consequences as the case may be.
Where ever possible, the consequence needs to be quantified. Two important factors which is likely
to be recorded in the performance diary are as follows-:

32
Facilitating Factor:

Are those factors that are beyond the control of the appraise that have led to better
performance. Example: Availability of resources in time.

Inhibiting Factor:

Are those factors that are beyond the control of the appraise they have led to poor
performance. EXAMPLE: power failure that has led to loss of output.

Whom it will be Available:

The performance diary will remain in custody of the immediate superior and it will be the
joint responsibility of the appraise to maintain the sanctity of this instrument through timely and
meticulous recording. Infect, maintenance of “performance diary” has been kept as the important
parameter for performance assessment.

Who will be The Appraiser:

The appraiser will be the sectional head / departmental head.

33
CHAPTER: 2
2.1 Industry profile
2.2 Company profile
2.3 Data analysis and interpretation

2.1 INDUSTRY PROFILE

Overview

34
Telecommunication deals with broadcasting of messages over long distances. With the
electronic systems services and activities the Telecommunication industry broadcast messages.
Messages are broadcast with the help of electronic systems and electric devices such as cables,
basic telephones, mobiles, radios, Brand bond and televisions. Broadcasting also involves the use
of orbiting satellites, the internet, and fiber optics and electronics.

The Telecommunication industry involves the manufacture of telecom equipment and


vendors/providers who provides the broadband and mobile subscription to the users. This is an
industry that is important for any type of economy; moreover, it provides many career opportunities
for hardware as well as software professionals.

Trends

One of the major trends witnessed among the players in the Telecommunication industry is
the need to attract new customers while retaining existing customers. This trend is a direct result of
the ever-increasing competitors in the industry. The Telecommunication industry is a growing
industry, mainly driven by the growing demand for high-speed internet with large bandwidth.

Another major trend witnessed in the Telecommunication industry is the growing use of
wireless services such as mobile VoIP applications to access the internet through mobile devices.
In response to this trend, mobile manufacturing companies are nowadays developing innovative
technologies for mobile applications. Further, the demand for cost-efficient network technologies
that provide high speed and large capacity is increasing. Thus, the increasing demand for 3G and
4G technologies is one of the key drivers in the Telecommunication industry.

Yet another trend witnessed in the Telecommunication industry is the increasing number of
mergers and acquisitions (M&A s) among the telecom operators. These M&A s helps the operators
enter new geographical markets, strengthen their core business, to reduce competition, and
increased exposure to the emerging market.

DEPARTMENT OF TELECOMMUNICATIONS

Also known as the Door Sanchar Vishay, this department concerns itself with policy, licensing
and coordination matters relating to telegraphs, telephones, wireless, data, facsimile and telemetric

35
services and other like forms of communications. It also looks into the administration of laws with
respect to any of the matters specified, namely:

➢ The Indian Telegraph Act, 1885 (13 of 1885)

➢ The Indian Wireless Telegraphy Act, 1940 (17 of 1933)

➢ The Telecom Regulatory Authority of India Act, 1997 (24 of 1997)

UNITS UNDER DOT

Value Chain

36
Value added services (VAS) player/provider constitutes the first stage of the value chain of the
Telecommunication industry. VAS players/providers mainly provide services such as network
delivery, billing, and marketing and distribution of telecommunication services.

The carrier/handset vendor/OS provider/third party players forms the next stage of the value
chain. These parties function as the go-to-market medium for VAS players/providers. These
vendors also have various application stores to market and distribute the telecommunication
services. These providers can also do direct billing for the services provided to the users or
customers.

The third stage in the value chain of the Telecommunication industry is application stores.
The application stores are provided by mobile companies to market, distribute and provide different
applications and services to the mobile users. The users are the customer that uses different
telecommunication equipment and services.

Telecommunication International Market

37
Some of the leading global telecommunication services markets are the US, China, UK,
Canada, Germany, Italy, Japan, Belgium, Netherlands, France and Spain. Some of the top global
telecommunication developing and emerging markets are China, India, Brazil, Eurasia, Russia,
Kenya, and Indonesia.

PUBLIC SECTOR UNIT

• Bharat Sanchar Nigam Limited

• Indian Telephone Industries Limited

• Mahan agar Telephone Nigam Limited

• Telecommunications Consultants India Limited

R&D UNIT

38
• Centre for Development of Advanced Computing

• Centre for Development of Telemetric

OTHER UNITS

• Wireless Planning and Coordination Wing

• Telecom Engineering Center

• Controller of Communication Accounts

TELECOM REGULATORY AUTHORITY OF INDIA (TRAI)

The Telecom Regulatory Authority of India (TRAI) is the independent regulator of the telecomm
unications business in India.

• The policy of liberalization that was embarked by Prime Minister P. V. Narasimha Rao in
the 1990s helped the Indian Telecom sector to grow rapidly.

• The government gradually allowed the entry of the private sectors into telecom equipment
manufacturing; value added services, radio paging and cellular mobile services.

• In 1994, the government formed the National Telecom Policy (NTP) which helped to
attract foreign direct investments and domestic investments.

• The entry of private and international players resulted in need of independent regulatory
body. As a result, The Telecom Regulatory Authority of India was established on 20

39
February 1997 by an act of parliament called "Telecom Regulatory Authority of India Act
1997".

• One of the major objectives of TRAI is to provide a transparent policy environment.

• TRAI has regularly issued orders and directions on various subjects like tariff,
interconnections, Direct To Home (DTH) services and mobile number portability.

MAJOR PLAYERS

There are three types of players in telecom services:

• State owned companies (BSNL and MTNL)

• Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)

• Foreign invested companies (Hutchison-Essar, Bharathi Tele-Ventures, Escorted, Idea


Cellular, BPL Mobile, Spice Communications).

HISTORY

Indian Telecom Industry started in 1851 when the first operational land lines were laid by
the government near Calcutta (seat of British power). In 1881 the Telephone services were
introduced in India and telephone services were merged with the postal system in 1883. In 1923 the
Indian Radio Telegraph Company (IRT) was formed. In 1947 after the independence, all the foreign
telecommunication companies were nationalized to form the Posts, Telephone and Telegraph
(PTT), a monopoly run by the government's Ministry of Communications. The Indian Telecom
Industry was considered as a strategic service and best to bring under state's control. In 1980 when
the private sector was allowed in telecommunications equipment manufacturing the first wind of
reforms in telecommunications sector began to flow.

Department of Telecommunications (DOT) was established which was an exclusive


provider of domestic and long-distance service that would be its own regulator (separate from the
postal system). Government has two wholly owned companies which were created as: the Vides
Sanchar Nigam Limited (VSNL) for international telecommunications and Mahan agar Telephone
Nigam Limited (MTNL) for service in metropolitan areas in 1986. In 1990's the opening up of

40
economy led to the benefits of telecom Industry. In 1994 the National Telecom Policy (NTP) was
formulated which was the first attempt to give a comprehensive roadmap for the Indian
telecommunications sector. Telecom Regulatory Authority of India (TRAI) was created in 1997. It
was formed to act as a regulator to facilitate the growth of the telecom sector.

Indian Telecom Industry can be divided into two segments: Fixed Service Provider (FSPs),
and Cellular Services. The Indian Fixed line services consist of basic services, national or domestic
long distance and international long distance services. The state operators (BSNL and MTNL),
account for almost 90 % of revenues from basic services. In selective urban areas the Private sector
services are presently available which collectively account for less than 5 % of subscriptions.
However, private services focus on the business/corporate sector, and offer reliable, high- end
services, such as leased lines, ISDN, closed user group and videoconferencing.

BACKGROUND

The Indian Telecommunications network with 203 million connections is the third Largest in
the world and the second largest among the emerging economies of Asia. Today, it is the fastest
growing market in the world. The telecommunication sector continued to register significant
success during the year and has emerged as one of the key sectors responsible for India’s resurgent
India’s economic growth.

• Telecom sector accounts for 1 percent of India’s GDP. Likely to double in 2-3 years.

• Telecom services contribute 30 percent to India’s total service tax revenue

• The Indian telecom sector gives direct employment to more than 4, 00,000 People,
compared to about 6, 00,000 people in China.

• Not just the enabler of software, BPO and ITES companies, it is also the Life line of a fast
growing E-commerce space.

• State-of-the-art telecom infrastructure has led to the rise of cities like Mysore, Mangalore,
Raipur, Ahmadabad, Kochi on the software services map.

41
• This has helped spread the benefits of a booming Indian economy to beyond metros and
large cities, and wealth creation is happening in tier-2 cities.

SIZE OF THE INDUSTRY

The Indian Telecom had only 54.6 million telephone subscribers in 2003, the number
increased to 429.7 million at the end of March 2009 and further to 562 million as on October 31,
2009 showing addition of 2.49 million during the period from March to December 2009.The
increase is entirely due to the spectacular increase in wireless connections at a compound annual
growth rate (CAGR) of 60 % per annum since 2004. Presently India has one of the lowest tariffs in
the world and is the fastest growing telecom markets in the world. Indian telecom has become the
second largest wireless network in the world with 525.1 million wireless connections. With
supportive policies, broadband subscribers grew from 0.2 million in 2005 to 6.2 million by end-
April 2009 and about to 7.98 million by end-December 2009.

MARKET CAPITALIZATION

The Indian Telecom industry has been playing an important role in the world economy and
global revenues in 2008 were USD 4 trillion, expected to grow at a steep 11% p.a. CAGR over the
next 2 years. By 2013 almost half (~USD 1.7 trillion) of telecom revenues accrue from service
revenue. Analysts believe that the revenue is expected to grow significantly to ~USD 2.7 trillion.
Today 20% of the world population has access to the Internet. The telecom industry is vast and
offers a wide range of career opportunities on both the hardware and software fronts. Opportunities
in mobile telephony, internet protocol media systems, wireless communications, GSM, GPRS and
CDMA technology, VoIP, data networks and optical networks are amongst the others.

Indian telecom industry underwent a high pace of market liberalization and growth since
the 1990s and now has become the world's most competitive and one of the fastest growing telecom
markets. The Industry has grown over twenty times in just ten years, from under 37 million
subscribers in the year 2001 to over 846 million subscribers in the year 2011. India has the world's
second-largest mobile phone user base with over 929.37 million users as of May 2012. It has
the world's third-largest Internet user-base with over 137 million as of June 2012.

42
The total revenue of the Indian telecom sector grew by 7% to 2832 billion (US$45 billion) for
2010–11 financial year, while revenues from telecom equipment segment stood at 1170
billion (US$19 billion).

Telecommunication has supported the socioeconomic development of India and has played
a significant role to narrow down the rural-urban digital divide to some extent. It also has helped to
increase the transparency of governance with the introduction of e-governance in India. The
government has pragmatically used modern telecommunication facilities to deliver mass education
programmers for the rural folk of India.

43
2.2. COMPANY PROFILE

Type State-owned enterprise

Industry Telecommunications

Incorporated 15 September 2000 with effect


Founded
from 1 October‘ 2000

Headquarters New Delhi, India

Key people Anupam shrivastava(CMD)

Fixed line and mobile telephony, Internet


Products
services, digital television, IPTV

Total Revenue Rs. 27,996.35(Cr) ( as on 31st March 2014)

Total assets Rs. 89,333.44(Cr) ( as on 31st March 2014)

Owner(s) Government of India

Employees 2,38,277 as on (31-03-2014)

Website www.bsnl.co.in

44
INTRODUCTION:

Bharat Sanchar Nigam Limited (abbreviated BSNL) is an Indian state-owned


telecommunications company headquartered in New Delhi, India. It was incorporated on 15
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 1 October 2000 on going concern basis. It is the
largest provider of fixed telephony and fourth largest mobile telephony provider in India, and is
also a provider of broadband services. However, in recent years the company's revenue and market
share plunged into heavy losses due to intense competition in the Indian telecommunications sector.

BSNL is India's oldest and largest communication service provider (CSP). It had a customer
base of 117 million as of Jan 2014. It has footprints throughout India except for the metropolitan
cities of Mumbai and New Delhi, which are managed by Mahan agar Telephone Nigam Limited
(MTNL).

BSNL is divided into a number of administrative units termed as telecom circles, metro
districts, project circles and specialized units. It has 24 telecom circles, 2 metro districts, 6 project
circles, 4 maintenance regions, 5 telecom factories, 3 training institutions and 4 specialized telecom
units.

History

The foundation of Telecom network in India was laid by the British some times in 19th
century. 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 Mahan agar 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 1990’s the telecom sector was opened up by the Government of Private investment,
therefore it became necessary to separate the government’s policy wing from operations wing. The

45
government of India corporatized the operations wing of DOT on October 1st, 2000 and named it
as Bharat Sanchar Nigam Limited (BSNL), BSNL operates as public sector.

VISION, MISSION & OBJECTIVES:

VISION:

“To become the leading telecom service provider in India with global presence”

“To create a customer focused organization with excellence in customer care, sales and
marketing”.

“Leverage technology to provide affordable and innovative telecom services/products


across customer segments”.

MISSION:

Be the leading telecom service provider in India with global presence.

• Generating value for all stakeholders - employees, shareholders, vendors & business
associates

• Maximizing return on existing assets with sustained focus on profitability

• Becoming the most trusted, preferred and admired telecom brand

• To explore International markets for Global presence.

Objectives:

46
‘To be the leading telecom service provider by achieving higher rate of growth so as to become
a profitable enterprise”.

“To provide quality and reliable fixed telecom service to our customer and thereby increase
customer’s confidence”.

“To provide customer friendly mobile telephone service of high quality and play a leading role
as GSM operator in its area of operation”.

Board of Directors

The Board comprise of 12 Directors, of which 6 [including the CMD] are whole time Directors; 2
Government Nominee Directors and 4 Non-official Part Time Directors. The board has the
optimum mix of 50% Whole time and 50% Part-time Directors. The present composition is as
under

• Chairman & Managing Director- Anupam Shrivastava

• Director - Consumer Fixed Access(CFA)- Shri N.K.Gupta

• Director - Consumer Mobility(CM) - N.K.Gupta L/A

• Director - Enterprise - A.N.Rai

• Director - HR - A.N.Rai L/A

• Director - Finance - Anupam Shrivastava L/A

• Executive director (CA & IT)-N.K.Mehta

• Executive director(CN)- M.C.Chaube

• Executive director(Fin)- Sujata Ray

• Executive director(NB)- M.A.Khan

• CVO- V.K.Singh

• OSD- A.K.Bhargava

Main Services being provided by BSNL


47
BSNL provides almost every telecom service in India. Following are the main telecom services
provided by BSNL:

• Optical Infrastructure and DWDM: BSNL owns the biggest OFC network in India. Also the
DWDM network is one of the biggest in the world. The DWDM equipments purchased in
open tender at BSNL are mainly of United Telecoms Limited (UTL) ) make, which was
declared lowest cost in competitive bidding. Rest DWDM equipments are from Huawei.
The SDH equipments are mainly from Huawei, ZTE, and ECI, UT STAR etc

• Market Share: As of 30 November 2013, BSNL had 12.9% market share in India and
stands as 5th Telecom Operator in India and 67% market share in ADSL Services.

• Managed Network Services: BSNL is providing complete Telecom Services Solution to


the Enterprise Customers i.e. MPLS Connectivity, Point to Point Leased Lines and Internet
Leased Lines.

• Universal Telecom Services: Fixed wire line services and landline in local loop (WLL)
using CDMA Technology called bfone and Taranga respectively. As of 30 June 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 Cell one & Excel

(BSNL Mobile). As of 30 June 2010 BSNL has 13.50% share of mobile telephony in the
country. It has 95.54million customers using BSNL mobile.

• 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, Net One as Post-paid and ADSL broadband as 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)

48
• 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 customers
to 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, provided that the requisite video phone equipment is available
at both ends.

• WiMax: BSNL has introduced India's first 4th Generation High-Speed Wireless Broadband
Access Technology with the minimum speed of 256kbit/s. The focus of this service is
mainly rural customer where the wired broadband facility is not available.

Creating a customer focused organization with excellence in customer care, sales&


marketing.

49
• Developing a marketing and sales culture that is responsive to customer needs care, sales&
marketing

• Excellence in customer service-”friendly, reliable, time bound, convenient and courteous


service”

Leveraging technology to provide affordable and innovative products/ services across


customer segments

• Offering differentiated products/services tailored to different service segments

• Providing reliable telecom services that are value for money.

Providing a conducive work environment with strong focus on performance

• Attracting talent and keeping them motivated

• Enhancing employees skills and utilizing them effectively

• Encouraging and rewarding individual and team/group performance

Establishing efficient business processes enabled by IT

• Changing policies and processes to enable transparent, quick and efficient decision making

• Building effective IT systems and tools

REVENUE

Revenue earned by BSNL during last seven years

50
Revenue(crores)
40000 38047
35812
35000 32045
29688
30000 27933 27129 27996

25000

20000

15000

10000

5000

0
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

SWOT ANALYSIS OF BSNL

Strengths

➢ Service in Rural Areas


➢ Experienced telecom service provider
➢ Total telecom service provider
➢ Huge Resources (financial and technical pool)
➢ Huge Optical fiber network and associated bandwidth
➢ Huge customer base
➢ Transparency in billing

Weaknesses

➢ Poor marketing strategy


➢ Bureaucratic organizational set up

51
➢ Limited number of value added services
➢ Legacy of poor service image
➢ Huge and aged manpower
➢ Procedural delays
➢ Lack of strategic alliances
➢ Problem like outdated technologies, unproductive rural assets and social obligations,
political interference
➢ Poor IT penetration within organization
➢ Non optimization of network capabilities
➢ Poor franchise network

Opportunities

➢ Tremendous market growing at 20 lakhs customers per month


➢ Under tapped broadband services
➢ Untouched international market
➢ Leveraging the brand image to source funds
➢ Fuller utilization of slack resources
➢ Can capitalize on public sector image to grab government’s ICT initiatives
➢ Broaden market expected from convergence of broadcasting, telecom and entertainment
industry

Threats

➢ Competition from private operators


➢ Keeping pace with fast technological changes
➢ Market maturity in basic telephone segment
➢ Multinational eyeing Indian telecom market
➢ High bargaining power of customers
➢ Policy of government like ”One India” rates

BSNL AT HYDERABAD

52
BSNL Hyderabad Circle office is situated in City Centre area. This office is undertaking of
Hyderabad office. This office works on various areas like Marketing, Planning, Administration,
Operations & Management and finance. Each department works under GM telecom district.GM
delegates some duties to DGM. DGM is the head of the department. These posts are highly
responsible because DGM is the main person of the department and DGM gives various approvals
of works. This approval leaves various effect of the department like financial, working efficiency,
functions of departments and field officer works. Basically BSNL city centre works in departmental
approaches or functions.

Challenges

During the financial year 2008–09 (from 1 April 2008 to 31 March 2009) BSNL has added
8.1 million new customers in various telephone services taking its customer base to 75.9 million.
BSNL's nearest competitor Bharti Airtel is standing at a customer base of 62.3 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 known and BSNL faces
bleak fiscal 2009-2010 as users flee.

Presently there is an intense competition in Indian Telecom sector and various Telecoms
are rolling out attractive schemes and are providing good customer services. But situation as on
2012, BSNL will be third largest operator (Service) and No 1 access operator in the country. As per
the TRAI Report 2011-12, BSNL became the most trustworthy brand due to its loyalty towards
customers and its rule.

Access Deficit Charges (ADC, a levy being paid by the private operators to BSNL for
providing service in non-lucrative areas, especially rural areas) has been slashed by 20% by TRAI,
1 April 2009. The reduction in ADC may hit the profits of BSNL.

BSNL has started 3G services in 290 cities and acquired more than 600,000 customers. It
has planned to roll out 3G services in 760 cities across the country in 2010-11. According to users
and big sources BSNL's 3G data speed is much higher than other operator and also it is
competitively cheap.

53
Broadband services: The shift in demand from voice to data has revolutionized the very
nature of the network. BSNL is poised to cash on this opportunity and has planned for extensive
expansion of the Broadband services. The Broadband customer base of 3.56 Million customers in
March'2009 is planned to be increased to 16.00 million by March 2014. On 13 June 2012, BSNL
employees participated called off an earlier planned nationwide strike against discriminatory
policies of BSNL management upon promise by Management to resolve the Demands of the
protesting unions.

3G coverage

BSNL paid the Indian government Rs. 101.87 billion for 3G spectrum coverage. As of 2011,
BSNL offers coverage in over 800 cities across India BSNL launched in 2012 a 3G wireless pocket
router named Wink net Mf50. It was released in collaboration with Shyam Networks. Wink net
Mf50 enables the connection of multiple devices to the Internet using a single sim card.

Recognitions

The Brand Trust Report published by Trust Research Advisory ranked BSNL in the 65th
position of the list of Most Trusted brands.

Competitors

BSNL competes with 10 other mobile operators throughout India. They are Airtel, Aircel,
Idea, MTNL, MTS, Reliance Communications, Tata Do Como, Videocon, Virgin Mobile and
Vodafone

Quality of Service

BSNL goes by the motto "Connecting India, faster and displays the same at their homepage.
BSNL offers seamless coverage in almost all urban and rural areas of India.

Censorship

54
See also: Internet censorship in India BSNL enforces censorship of online content as
preorders of Indian Department of Telecom.

Customer grievance

BSNL has a well-structured and multilayered Customer Grievances Redressal Mechanism


including Customer Dispute Resolution Mechanism. The Customer Redressal setup in BSNL has
been introduced right from the Corporate Office to SSA (Secondary Switching Area) levels.

BSNL strives to provide uninterrupted telecom services to the valuable customers. BSNL
has an extensive grass root level Fault Restoration System (FRS) to book the complaints and ensure
prompt rectification of any fault. For this customer is required to call Local Number 198 for
booking/ registration of his complaint/grievance.

Customer may use following toll free "consumer care numbers" for booking their
complaints at our Complaint Centers (Call Centers). The details are tabulated below:

S. No. Type of Service Toll Free No.

For Basic Services including Broadband 1500 or 1800-345-


1
Services 1500

1502 or 1800-180-
2 For CDMA & WIMAX Services
1502

1503 or 1800-180-
3 For GSM Mobile Services
1503

1504 or 1800-345-
4 For Broadband and Internet Services
1504

1505 or 1800-180-
5 For Blackberry Services
1505

6 For MPLS and other Data Services 1800-425-1957

55
Customer may dial these "Consumer Care Numbers" to obtain general information on the
respective service. Thus these numbers also act as "General Information Numbers".

BSNL is committed to provide state of the art Telecom services to its customers and comply
with the quality benchmarks as prescribed by TRAI or set forth by itself from time to time.

A) Quality of service benchmarks set for customers of Wire Line connections/ Services

1 Provision of Telephone Connection 100% within seven days (subject to technical


feasibility)

2 Repair of Fault

(a) 100% within three days for urban areas and

(b) 100% within five days for rural/ hilly areas (subject to technical feasibility)

3 Shifting of Telephone Connection Within three days

4 Closure of Telephone Connection within 7 days

5 Percentage of Billing Complaints resolved within four weeks 100%

6 Time taken for refund of deposit after closure within sixty days of date of closure.

b) Quality of service benchmarks set for customers of mobile services.

MONTHLY BASIS:

1 Resolution of billing/ charging complaint 100% within 4 weeks

2 Period of applying credit/ waiver/ adjustment to customer’s account 100% within 1 week

3 Accessibility of call centre/ customer care >= 95%

4 %age of calls answered by the operator (Voice to Voice) >= 90%

5 %age requests for Termination/ Closure of service complied 100% within 7 days

6 Time taken for refund of Deposit after closure 100% within 60 days.

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c) The Quality of Service benchmarks set for customers of Broadband connections/ service

1 Provisioning of BB Connection 100% within fifteen days (subject to technical feasibility).

2 Repair of Fault Within three days

3 Billing Performance

(a) Percentage of Billing Complaints resolved.

(b) Time taken for refund of deposits after closure

(c) All billing complaints to be resolved within four weeks.

(d) All cases of refund of deposits to be made within sixty days of date of close

Telecom Consumers Complaint Redressal Regulation, 2012

Pursuant to the TRAI’s new Regulation called the Telecom Consumers Complaint
Redressal Regulations, 2012, BSNL has replaced its three-tier Complaint Redressal Mechanism by
two-tier system by doing away with Nodal Officer. Under these Regulations, every complaint at
Complaint Centre (Call Centre) shall be registered by giving Unique Docket Number, which will
remain in the system for at least three months. Every Complaint Centre (Call Centre) shall

At the time of registering of complaint:

communicate through SMS to the consumer, the docket number, date and time of
registration of the complaint and the time within which the complaint is likely to be resolved; and
update the system with date and time of registration of the complaint, docket number, the telephone
number of the consumer and the time indicated to the consumer for resolution of the complaint

On completion of action for redresses of complaint:

57
Communicate to the consumer through SMS of Redressal of the complaint along with action
taken on the complaint; and Update the system with details of action taken.

Interactive Voice Response System (IVRS), if installed on a "Consumer Care Number" shall
operate in the following manner the first level of the IVRS provides for language selection the
second level of the IVRS provides for options relating to the broad categories of complaints and
service request the third level of the IVRS provides for a sub-menu under complaints and service
requests, separately.

The sub-menu in the third level also contains option enabling the consumer to speak to a
consumer care agent. BSNL has established "Web based Complaint Monitoring System" to enable
the consumers to book and monitor the status of their complaints in their respective Service Areas.

The details about booking and monitoring the complaints on "Web Based Monitoring
System" is given below

Step-1: Open BSNL website i.e.www.bsnl.co.in.

Step-2: Click on customer care. The following will appear on the screen:-

New Service Request Complaint Booking Status of Appeal Register for New Services For
Booking Dockets For Tracking Service Requests/ Complaint Bookings For Tracking Appeal
Docket Status. Landline/ Broadband Appeal status only GSM/ CDMA Leased Lines

Step-3: Choose and click on Landline/ Broadband or GSM/ WLL for New Service Request,
Complaint Booking and for Tracking Status of Service Request/Complaint Booking/Appeals.

Step-4: Select the Circle and use online services without registration or with registration. Details
about address for booking and monitoring the complaints on "Web Based Monitoring System". The
details of Web based Complaint Monitoring System shall be published in a leading newspaper in
Hindi/ English and in Local language of service area once in six month and also through its
telephone bills

Any change in the address of the "Web Based Complaint Monitoring System" shall also be
intimated to the consumers in the same manner stated above Appellate Authority

58
Name and designation of the Appellate Authority of respective Service Area along with his
contact telephone number, FAX number, e-mail id and office addresses is displayed in his office,
Complaint Centre (Call Centre) and Customer Service Centre (CSC) and can also be seen on BSNL
website.

2.3 DATA ANALYSIS & INTERPRETATION

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

59
NO OF
OPTIONS RESPONDENT(SAMPLE PERCENTAGE
SIZE 50)

VERY MUCH
42 84%

SOME WHAT
7 14%

DON’T KNOW
1 2%

TOTAL
50 100%

90
80
70
60
50
40
30
20
10
0
very much some what don't know

INTERPRETATION- 84% Employees are aware of the object of the performance


appraisal system.

2. Performance appraisal helps the organization in achieving goal.

60
NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)

YES 38 76%

NO 10 20%

DON’T KNOW 2 4%

TOTAL
50 100%

80

70

60

50

40

30

20

10

0
yes no don't know

INTERPRETATION - 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.

61
NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)

YES 38 76%

NO 10 20%

DON’T KNOW 2 4%

TOTAL
50 100%

80

70

60

50

40
30

20

10
0
yes no don't know

INTERPRETATION-: 76% Employees say that yes organized meetings helps goal and
task. While the other 20% employees that are not very much helpful.

4. Organization has to make a fixed duration for performance appraisal.

62
NOS OF
OPTIONS RESPONDENT (Sample PERCENTAGE
size 50)

YES 35 75%

NO 10 20%

DON’T KNOW 5 5%

TOTAL
50 100%

80

70

60

50

40

30

20

10

0
yes no Don't know

INTERPRETATION -: 75% 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. Satisfied for point allocation on the basis of KRA’s & managerial dimension.

63
NOS OF
OPTIONS RESPONDENT(Sample size PERCENTAGE
50)

FULLY SATISFIED 22 44%

SATISFIED 26 52%

DISSATISFIED 2 4%

TOTAL
50 100%

60

50

40

30

20

10

0
fully satisfied satisfied dissatisfied

INTERPRETATION-: 44% Employees are fully satisfied for point allocation on the basis
of KRA’s and managerial dimension.

64
6. Performance appraisal affects the working efficiency of employees.
NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)

YES 40 82%

NO 8 16%

DON’T KNOW 2 2%

TOTAL
50 100%

90

80

70

60

50

40

30

20

10

0
yes no DON’T KNOW

INTERPRETATION-: 82% Employees say that yes performance appraisal system affect
the working efficiency of employee. While the other 16% employees do not agree with this
statement.
65
7. Appraisal system is able to develop high result orientation approach.
NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)

YES 35 75%

NO 10 20%

DON’T KNOW 5 5%

TOTAL
50 100%

80

70

60

50

40

30

20

10

0
yes no don't know

INTERPRETATION-: 75% Employees say that yes the appraisal system is able to
develop high result orientation approach. While the other 20% employees do not agree with
us.

66
8. The systems will also contribution in potential appraisal.

NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)
36 72%
YES
10 20%
NO

DON’T KNOW 4 8%

TOTAL
50 100%

80

70

60

50

40

30

20

10

0
yes no don't know

INTERPRETATION-: 72% employees think that the systems will also Contribution in
potential appraisal.

67
9. Promotion process in the organization is based on –

NOS OF
OPTIONS RESPONDENT(Sample PERCENTAGE
size 50)

PERFORMANCE 2 4%

EXPERIENCE 6 12%

BOTH 42 84%

TOTAL
50 100%

90

80

70

60

50

40

30

20

10

0
Performance experience both

INTERPRETATION-: 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.

68
10 .The present performance appraisal system is transparent & free from bias.

NOS OF
OPTIONS RESPONDENT(Sample size PERCENTAGE
50)

YES 42 84%

NO 6 14%

DON’T KNOW 2 2%

TOTAL
50 100%

90

80

70

60

50

40

30

20

10

0
YES NO DON'T KNOW

INTERPRETATION-: 84% Employees agree with this statement that the present
performance appraisal system is transparent and free from bias.

69
11 .Satisfied with the current performance appraisal system.
NOS OF PERCENTAGE
OPTIONS RESPONDENT(Sample size
50)

HIGHLY SATISFIED 27 54%

SATISFIED 18 36%

DISSATISFIED 5 10%

TOTAL
50 100%

60

50

40

30

20

10

0
Highly satisfied Satisfied Dissatisfied

INTERPRETATION-: 54% Employees are highly satisfied with the current Performance appraisal
system. While 36% employees are satisfied with the current performance appraisal system.

70
12) In your Opinion Performance Appraisal is?

NOS OF
OPTIONS RESPONDENT(Sample size PERCENTAGE
50)

Evaluation of Employees
35 84%
Promotion of Employees
10 14%
Job Satisfaction of
Employees 5 2%

TOTAL
50 100%

40

35

30

25

20

15

10

0
Evaluation of Employees Promotion of Employees Job Satisfaction of Employees

INTERPRETATION-: 84% Employees opinion is that performance appraisal system is


transparent and it used to evaluate the employees performance.

71
13) Do you receive any increment in your salary after performance Appraisal?

NOS OF
OPTIONS RESPONDENT(Sample size PERCENTAGE
50)

YES 32 64%

NO 10 20%

DON’T KNOW 8 16%

TOTAL
50 100%

35

30

25

20

15

10

0
Yes No Don't Know

INTERPRETATION-: 64% Employees agree with this statement that they receive
increment in their salary after performance Appraisal.

72
14) Do you think that performance Appraisal help to provide an atmosphere
where all are encouraged to share one another burden.

NOS OF
OPTIONS RESPONDENT(Sample size PERCENTAGE
50)

YES 36 72%

NO 10 20%

DON’T KNOW 4 16%

TOTAL
50 100%

40

35

30

25

20

15

10

0
Yes No Don't Know

INTERPRETATION-: 72% Employees agree with this statement that performance


Appraisal help to provide an atmosphere where all are encouraged to share one another
burden.

73
15) Do you think performance appraisal helps people set and achieve meaningful
goals?

NOS OF
OPTIONS RESPONDENT(Sample size PERCENTAGE
50)

YES 42 84%

NO 6 14%

DON’T KNOW 2 2%

TOTAL
50 100%

45

40

35

30

25

20

15

10

0
Yes No Don't Know

INTERPRETATION-: 84% Employees agree with this statement that performance


appraisal helps people set and achieve meaningful goals.

74
16) Do you think performance appraisal give constructive criticism in a friendly
and positive manner?

NOS OF
OPTIONS RESPONDENT(Sample size PERCENTAGE
50)

YES 33 66%

NO 15 30%

DON’T KNOW 2 4%

TOTAL
50 100%

35

30

25

20

15

10

0
Yes No Don't Know

INTERPRETATION-: 66% Employees agree with this statement that thinks performance
appraisal give constructive criticism in a friendly and positive manner.

75
17) Do you think that performance of employees improve after process of
performance appraisal?

NOS OF
OPTIONS RESPONDENT(Sample size PERCENTAGE
50)

YES 42 84%

NO 10 20%

DON’T KNOW 8 16%

TOTAL
50 100%

45

40

35

30

25

20

15

10

0
Yes No Don't Know

INTERPRETATION-: 84% Employees thinks that performance of employees improves


after process of performance appraisal.

76
18) Do you think performance appraisal improves motivation and job
Satisfaction?

NOS OF
OPTIONS RESPONDENT(Sample size PERCENTAGE
50)

YES 31 62%

NO 10 20%

DON’T KNOW 9 18%

TOTAL
50 100%

35

30

25

20

15

10

0
Yes No Don't Know

INTERPRETATION-: 62% Employees thinks that think performance appraisal improves


motivation and job Satisfaction.

77
19) Is the top level management partial in Performance Appraisal?

NOS OF
OPTIONS RESPONDENT(Sample size PERCENTAGE
50)

YES 42 84%

NO 7 14%

DON’T KNOW 1 2%

TOTAL
50 100%

45

40

35

30

25

20

15

10

0
Yes No Don't Know

INTERPRETATION-: 84% Employees opinion is that top level management does not
show any partiality in calculating Performance Appraisal.

78
20) Do you think performance appraisal helps to change behavior of Employees?

NOS OF
OPTIONS RESPONDENT(Sample size PERCENTAGE
50)

YES 37 74%

NO 10 20%

DON’T KNOW 3 6%

TOTAL
50 100%

40

35

30

25

20

15

10

0
Yes No Don't Know

INTERPRETATION-: 74% Employees think that performance appraisal helps to change


behavior of Employees.

79
21) In your opinion Performance Appraisal system of your organization is
related to which of the following?

NOS OF
OPTIONS RESPONDENT(Sample size PERCENTAGE
50)

YES 42 84%

NO 7 14%

DON’T KNOW 1 2%

TOTAL
50 100%

45

40

35

30

25

20

15

10

0
Yes No Don't Know

INTERPRETATION-: 74% Employees think that performance appraisal helps to change


behavior of Employees.

80
CHAPTER-3

3.1. FINDINGS AND LIMITATIONS


3.2. SUGGESTIONS
3.3. CONCLUSIONS
3.4. BIBILOGRAPHY
3.5. GLOSSARY
3.6. ANNEXURE

81
3.1. FINDINGS AND LIMITATIONS:
After having analyzed the data, it was observed that BSNL is following some
Performance Appraisal. I had found some limitations by collecting the views of employees in
BSNL.
1. In BSNL as it is a government organization, employees are promoted to higher level not by
their performance but by their seniority in organization.
2. Assessment of performance of employees is done yearly based in BSNL. Performance of
BSNL employees is calculated for every year, there will be no use by this yearly calculation.
3. Guidance by higher level employees to lower level employees is mandatory so that
employees can able to know how to work and how to utilize their skills for the success of
organization.
4. Employees of BSNL feel security in their job because it is a government organization once
they enter into organization they will stay in the organization until they get retried. They
feel that no one has authority to dismiss them from the organization.
5. Salaries for the employees in BSNL is given not based on their performance but based on
their experience/ service in the organization.

82
3.2. SUGGESTIONS:
After having analyzed the data, it was observed that BSNL is following some Performance
Appraisal. 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.

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. The time period for conducting the appraisal should be revised, so that the exercise
becomes a continuous phenomenon. The time period for calculating performance of
employees must be reduced to quarterly or half yearly.

3. 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.

4. In BSNL, higher level employees must guide their juniors in the way of doing work
and should motivate them to implement their skills for the success of the organization.

5. As BSNL is in loss, it can’t offer more salaries to employees. So it must take some
funds from central govt. to stabilize the functioning of BSNL.

6. If salaries for the employees in BSNL given based on their performance than
experience then it can get more improvement in production and functioning of BSNL
and there will be lots of change in profits.

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.

83
3.3. CONCLUSION:

Organizations need some means of ensuring performance standards are being achieved and
objectives are being met. They also need to plan for the future by setting organizational objectives.
These should be achieved through personal objectives agreed at the appraisal. This is vital for all
employees in order to maintain a competitive position, and it is important that the method for doing
this is successful. All the material in the ‘Skills of Appraisal and Performance Review’ resource is
dedicated to that end. However, underlying the methods, practices and techniques there must be
crucial managerial thoughts, attitudes and activities.

84
3.4. BIBLIOGRAPHY:

BOOKS-

Human Resource - V.S.P Rao

Research Methodology - C. R. Kothari

BSNL Manual - Company Magazines

WEBSITES- www.bsnl.net

www.bsnl.co.in

http://trai.gov.in/

85
3.5. GLOSSARY

• KRA ---- Key Result Area


• TRAI ---- Telecom Regulatory Authority of India
• WAN ---- Wide Area Network
• LAN ---- Local Area Network

86
3.6. ANNEXURE

(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) Some what
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
c) Don’t know
4) Should organization have to make a fixed duration for performance appraisal?
a) Yes
b) No
c) Don’t know
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

87
6) Does performance appraisal affect the working efficiency of employee?
a) Yes
b) No
c) Don’t know
7) Whether the appraisal system is able to able to develop high result
a) Yes
b) No
c) Don’t know
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
c) Don’t know
11) Are you satisfied with the current performance appraisal system?
a) Highly satisfied
b) Satisfied
c) Just satisfied

12) In your Opinion Performance Appraisal is?


a. Evaluation of Employees
b. Promotion of Employees
c. Job Satisfaction of Employees

88
13) Do you receive any increment in your salary after performance Appraisal.
a. Yes
b. No
c. Don’t know

14) Do you think that performance Appraisal help to provide an atmosphere where all are
encouraged to share one another burden.
a. Yes
b. No
c. Don’t know

15) Do you think performance appraisal helps people set and achieve meaningful goals.
a. Yes
b. No
c. Don’t know

16) Do you think performance appraisal give constructive criticism in a friendly and positive
manner?
a. Yes
b. No
c. Don’t know

17) Do you think that performance of employees improve after process of performance appraisal ?
a. Yes
b. No
c. Don’t know

18) Do you think performance appraisal improves motivation and job Satisfaction.
a. Yes
b. No
c. Don’t know

89
19) Is the top level management partial in Performance Appraisal
a. Yes
b. No
c. Don’t know

20) Do you think performance appraisal helps to change behavior of Employees.


a. Yes
b. No
c. Don’t know

21) In your opinion Performance Appraisal system of your organization is related to which of the
following?
a. Retention of Employees
b. Recruitment System
c. Organizational Culture

Give your suggestion for the performance appraisal system in

BSNL HYDERABAD..

………………………………………………………………………
………………………………………………………………………

90
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