_

institute of professional excellence & management

A research PROJECT report

ON

performance appraisal PRACTICES IN INDIAN PUBLIC SECTOR ORGANIZATIONS PERFORMED at bsnl

submitted in partial fulfillment of the requirements for the degree master of business administration

(2013-2015)

SUBMITTED TO: SUBMITTED BY:

MR.Shashank Chaudhary Asim khan Roll No 1311470003

INDEX

Sr. No.

Particulars

1.

INTRODUCTION

2.

OBJECTIVES OF THE STUDY

3.

SCOPE AND IMPORTANCE OF THE STUDY

4.

RESEARCH METHODOLOGY

5.

ANALYSIS OF DATA

6.

FINDINGS

7.

RECOMMENDATION

9.

CONCLUSION

10.

LIMITATION

11.

ANNEXURE

12.

BIBLIOGRAPHY

Introduction towards Performance Appraisal SystemHuman Resource (or personnel) management, in the sense of getting things done through people, is an essential part of every managers responsibility, but many organizations find it advantageous to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently.People are our most valuable asset. Yet, the reality for many organizations is that their people remain undervalued, under trained and underutilized.Performance Appraisal is the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. It consists of all formal procedures used in the working organizations to evaluate personalities, contributions and potentials of employees.

ACKNOWLEDGEMENT

I would like to take this opportunity to thank the following people who have directly or indirectly contributed towards the completion of this dissertation and without their help this in the present form would have not been possible.

I am thankful to Mr SHASHANK CHAUDHARY for giving me opportunity to work on such a nice project as my project. And last but not the least my special thanks to my parents without their support my MBA course would not have been possible.

ASIM KHANMBA (4th Sem) Roll No. 1311470003

BHARAT SANCHAR NIGAM LIMITED

TypeState-owned enterpriseIndustryTelecommunicationsFounded19th century, incorporated 2000HeadquartersNew Delhi, IndiaKey peopleR.K. Upadhyay(Chairman & MD)ProductsFixed line and mobile telephony, Internet services, digital television, IPTVRevenue4,567,327,933 crore (US$831,253.68 billion) (2011-12)[1]Net income123,228,851 crore (US$22,427.65 billion) (201112)Total assets117,632 crore (US$21.41 billion) (201112)[2]Owner(s)Government of India

BSNL, Headquarter, New DelhiBharat Sanchar Nigam Limited (abbreviated BSNL)

is an Indian state-owned telecommunications company headquartered in New Delhi, India. 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 Indian telecommunications sector.BSNL is India's oldest and largest communication service provider (CSP). It had a customer base of 95 million as of June 2011. It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi, which are managed by Mahanagar Telephone Nigam (MTNL).BSNL provides almost every telecom service in India. Following are the main telecom services provided by BSNL:Universal Telecom Services:

Fixed wire line services and landline in local loop (WLL) using CDMA Technology called bfone and Tarang respectively. As of June 30, 2010, BSNL had 75% market share of fixed lines.Cellular Mobile Telephone Services:

BSNL is major provider of Cellular Mobile Telephone services using GSM platform under the brand name Cellone & Excel (BSNL Mobile). As of June 30, 2010 BSNL has 13.50% share of mobile telephony in the countryWLL-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 Prepaid, Net One as Postpaid 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)

Intelligent Network (IN):

BSNL offers value-added services, such as Free Phone Service (FPH), India Telephone Card (Prepaid card), Account Card Calling (ACC), Virtual Private Network (VPN), Tele-voting, Premium Rae Service (PRM), Universal Access Number (UAN).3G:

BSNL offers the '3G' or the'3rd Generation' services which includes facilities like video calling, mobile broadband, live TV, 3G Video portal, streaming services like online full length movies and video on demand etc.IPTV:

BSNL also offers the 'Internet Protocol Television' facility which enables watch television through internet.FTTH:

Fibre to The Home facility that offers a higher bandwidth for data transfer. This idea was proposed on post-December 2009Landline, 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.HISTORY

BSNL then known as the Department of Telecommunications had been a near monopoly during the socialist period of the Indian economy. During this period, BSNL was the only telecom service provider in the country. MTNL was present only in Mumbai and New Delhi. During this period BSNL operated as a typical state-run organization, inefficient, slow, bureaucratic, and heavily unionized. As a result subscribers had to wait for as long as five years to get a telephone connection. The corporation tasted competition for the first time after the liberalization of Indian economy in 1991. Faced with stiff competition from the private telecom service providers, BSNL has subsequently tried to increase efficiencies itself. Dot veterans, however, put the onus for the sorry state of affairs on the Government policies, where in all state-owned service providers were required to function as mediums for achieving egalitarian growth across all segments of the society. The corporation (then Dot), however, failed to achieve this and India languished among the most poorly connected countries in the world. BSNL was born in 2000 after the corporatization of Dot. The corporatization of BSNL was undertaken by an external international consulting team consisting of a consortium of A.F.Ferguson & Co, JB Dadachanji and NM Rothschild - and was probably the most complex corporatization exercise of its kind ever attempted anywhere because of the quantum of assets (said to be worth USD 50 Billion in terms of breakup value) and over half a million directly and indirectly employed staff. Satish Mehta, who led the team later, confessed that one big mistake made by the consortium was to recommend the continuation of the state and circle based geographical units which may have killed the synergies across regions and may have actually made the organization less efficient than had it been a seamless national organization. Vinod Vanish, then Chairman of the Telecom Commission made a very bold decision to promote younger talent from within the organization to take up a leadership role and promoted the older leaders to a role in licensing rather than in managing the operations of BSNL. The efficiency of the company has since improved; however, the performance level is nowhere near the private players.The corporation remains heavily unionized and is comparatively slow in decision making and its implementation, which largely acts at the instances of unions without bothering about outcome. Management has been reactive to the schemes of private telecom players, though it offers services at lowest tariffs; the private players continue to notch up better numbers in all areas, years after year. BSNL has been providing connections in both urban and rural areas. Pre-activated Mobile connections are available at many places across India. BSNL has also unveiled cost-effective broadband internet access plans (Data One) targeted at homes and small businesses. At present BSNL enjoys around 60% of market share of ISP servicesCHALLENGES

During the financial year 200809 (from April 1, 2008 to March 31, 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. However, BSNL faces bleak fiscal 2009-2010 as users flee.Presently there is an intense competition in Indian Telecom sector and various Telcos 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 among country. As Trai Report 2011-12 BSNL became 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 provide service in non-lucrative areas especially rural areas) has been slashed by 20% by TRAI, i.e. April 1, 2009 The reduction in ADC may hit the bottom lines of BSNL.BSNL has started 3G services in 290 cities and acquired more than 6 Lakh 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.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

BSNL - MTNL MERGER PLANS

On February 23, 2011, The Department of Telecommunications said it wanted to revive a proposal for the merger of state-owned operators BSNL and MTNL. In its draft plan, the department while showing concern over the deteriorating performance of BSNL and MTNL said that BSNL and MTNL should be merged as they have complimentary operations and can combine their strengths for synergies. Dot said the government should set up a multi-stakeholder committee to develop a restructuring plan for both firms. The committee should have members from public enterprises, the DoT, department of IT and ministry of finance. However the BSNL's staff unions are opposing this merger tooth and nail realising that MTNL is in dire state and need help of its big brother, BSNL, to alleviate itself from getting into red balance sheet. MTNL in spite of having its operations in two big metro cities viz. New Delhi & Mumbai is realising cascading fall in revenue and profits for the past 10 successive years. The telecommunication operators should focus on enterprise business, services to government and the public sector, value-added services and technologies like 3G, the department recommends.3GWhile it did not participate in the 3G auction, BSNL paid the Indian government Rs. 10,187 crores for 3G spectrum in all 20 circles it operates in. State-owned MTNL provides 3G services in the other 2 circles - Delhi and Mumbai. Both these state-owned operators were given a head start by the government in the 3G space by allotting the required 3G spectrum, on the condition that each will have to pay an amount which will be equivalent to the highest bid in the respective service areas as and when the 3G auctions take place. BSNL recently launched a 3G wireless pocket router named Winknet Mf50 for 5800/- Indian rupees. It was released in collaboration with another telecom service provider Shyam networks. Winknet Mf50 enables you to connect multiple devices to the internet using a single sim card. 3G CoverageBSNL has the largest 3G network in India. Additionally, BSNL 3G services usually cover not only the main town/city but also the adjoining suburbs and rural areas as well. As of now BSNL has 3G services in 826 cities across India. The following is a list of BSNL 3G enabled towns/cities. This list covers only BSNL 3G services provided through HSDPA/HSUPA and HSPA+ for GSM subscribers and not EVDO for CDMA subscribers.Note: This list may not be complete as new towns/cities are added regularly.BSNL TabletBSNL initially launched three tablets manufactured by Pantel now fourth tablet (T-Pad IS701C) is also available. The tablet's brand name is Penta. The tablet is available for pre-order online.

SpecificationsT-Pad IS701RT-Pad IS701CT-Pad WS704CT-Pad WS802CScreen size7 Inch, 800x480 pixel Resistive7 Inch, 800x480 pixel Capacitive7 Inch, 800x600 pixel Capacitive8 Inch, 800x600 pixel CapacitiveCentral processor unit speed1GHz1GHz1GHz1.2GHzRandom-access memory256MB DDR2512MB DDR3512MB DDR3512MB DDR3Flash Memory2 GB4 GB4 GB4 GBRecognitionsThe Brand Trust Report published by Trust Research Advisory ranked BSNL in the 65th position of the list of Most Trusted brands.CompetitorsBSNL competes with 14 other mobile operators throughout India. They are Aircel, Airtel, Idea, Loop Mobile, MTNL, MTS, Reliance Communications, Tata Do Como, Uninor, Videocon, Virgin Mobile and Vodafone.Quality of ServiceBSNL goes by the motto "Connecting India, faster"] nd displays the same at their homepage. The service quality of BSNL Customer service has been severely criticized as very poor.The mobile services provided by BSNL in almost every part of the country were and still are criticized for network outages and frequent call drops. Despite the criticism there is very negligible or no amount of work being carried out by the authorities to improve the performance and quality of the network. BSNL claims to offer seamless coverage in almost all forests of India in collaboration with state forest department.

CensorshipBSNL enforces censorship of online content as per orders of Indian Department of Telecom.Bayimg.com blocked by orders of Department of Telecom on BSNL networkThese are biased comments. The services offered by BSNL are at par with other telecom providers in India. In fact only BSNL is providing the services as per QOS parameters.

To carry out the study of BSNL, we framed the following objectivesIdentification of the technique of performance appraisal followed in BSNL.Employee attitude towards the present appraisal system.Review of the current appraisal system in order to Enhance productivityAttain global standardsTo provide suggestions & recommendations from the study conducted.To maintain records in order to determine compensation packages, wage structure, salaries raises, etc. To identify the strengths and weaknesses of employees to place right men on right job. To maintain and assess the potential present in a person for further growth and development.To provide a feedback to employees regarding their performance and related status.

The scope of any performance appraisal should include the following: provide employees with a better understanding of their role and responsibilities; increase confidence through recognizing strengths while identifying training needs to improve weaknesses; improve working relationships and communication between supervisors and subordinates; increase commitment to organizational goals; develop employees into future supervisors; assist in personnel decisions such as promotions or allocating rewards; and allow time for self-reflection, self-appraisal and personal goal setting. (See Reference 3: Performance Appraisal System)

ConsiderationsAlthough performance appraisals have many intended benefits for both the organization and employee, if the process isn't carefully implemented and managed, it can result in employee backlash. Constructive criticism can help improve performance, but there is a fine line between providing helpful feedback and upsetting an employee. Management should always make sure to recognize and reward excellent performance to avoid coming off as too negative. Employees who work hard and take pride in their work will have a hard time correctly utilizing the feedback if none of their accomplishments or positive contributions are noticed and appreciated.

APPLICATIONSA central reason for the utilization of performance appraisals (PAs) is performance improvement (initially at the level of the individual employee, and ultimately at the level of the organization).[10] Other fundamental reasons include as a basis for employment decisions (e.g. promotions, terminations, transfers), as criteria in research (e.g. test validation), to aid with communication (e.g. allowing employees to know how they are doing and organizational expectations), to establish personal objectives for training programs, for transmission of objective feedback for personal development, as a means of documentation to aid in keeping track of decisions and legal requirements and in wage and salary administration.[1] Additionally, PAs can aid in the formulation of job criteria and selection of individuals who are best suited to perform the required organizational tasks. A PA can be part of guiding and monitoring employee career development. PAs can also be used to aid in work motivation through the use of reward systems.

Rationale Of The StudyPerformance Appraisal is the important aspect in the organization to evaluate the employees performance. It helps in understanding the employees work culture, involvement, and satisfaction. It helps the organization in deciding employees promotion, transfer, incentives, and pay increase.

RESEARCH METHODOLOGYRESEARCH 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:Determining Data Collection DesignDetermining Data MethodsDetermining Data SourcesDetermining Primary Data Collection MethodsDeveloping QuestionnairesDetermining Sampling Plan

(1) Exploratory Research Design:Exploratory 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.Exploratory research helps determine the best research design, data collection method and selection of subjects. It should draw definitive conclusions only with extreme caution. Given its fundamental nature, exploratory research often concludes that a perceived problem does not actually exist.

(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 orb) Experimental

Sources of Information:Primary Data (PRIMARY DATA is data that has not been previously published, i.e. the data is derived from a new or original research study and collected at the source, e.g., in marketing, it isinformation that is obtained directly from first-hand sources by means of surveys, observation or experimentation.)

Secondary Data(Secondary data, on the other hand, is basically primary data collected by someone else. Researchers reuse and repurpose information as secondary data because it is easier and less expensive to collect. However, it is seldom as useful and accurate as primary data.)

DATA COLLECTION: DATA SOURCES:Secondary Data through Internet Primary Data through QuestionnaireContact MethodPersonal Interaction

WHAT IS Performance Appraisal?Performance Appraisal is defined as the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. It consists of all formal procedures used in working organizations and potential of employees. Performance appraisals are a part of career development and consist of regular reviews of employee performance within organizations.

Characteristics 1. Performance Appraisal is a process.2. It is the systematic examination of the strengths and weakness of an employee in terms of his job.3. It is scientific and objective study. Formal procedures are used in the study.4. It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a definite plan.5. The main purpose of Performance Appraisal is to secure information necessary for making objective and correct decision an employee. ProcessThe process of performance appraisal:1. Establishing performance standards 2. Communicating the Standards 3. Measuring Performance 4. Comparing the actual with the standards 5. Discussing the appraisal 6. Taking Corrective Action

Methods of Performance appraisalESSAY APPRAISALIn its simplest form, this technique asks the rater to write a paragraph or more covering an individual's strengths, weaknesses, potential, and so on. In most selection situations, particularly those involving professional, sales, or managerial positions, essay appraisals from former employers, teachers, or associates carry significant weight. . Graphic rating scaleThis technique may not yield the depth of an essay appraisal, but it is more consistent and reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is he outstanding, above average, average, or unsatisfactory?) and on a variety of other factors that vary with the job but usually include personal traits like reliability and cooperation. It may also include specific performance items like oral and written communication.

Field reviewThe field review is one of several techniques for doing this. A member of the personnel or central administrative staff meets with small groups of raters from each supervisory unit and goes over each employee's rating with them to (a) identify areas of inter-rater disagreement, (b) help the group arrive at a consensus, and (c) determine that each rater conceives the standards similarly. . Forced-choice ratingLike the field review, this technique was developed to reduce bias and establish objective standards of comparison between individuals, but it does not involve the intervention of a third party. Management by objectivesTo avoid, or to deal with, the feeling that they are being judged by unfairly high standards, employees in some organizations are being asked to set - or help set - their own performance goals. Within the past five or six years, MBO has become something of a fad and is so familiar to most managers that I will not dwell on it here. Ranking methodsFor comparative purposes, particularly when it is necessary to compare people who work for different supervisors, individual statements, ratings, or appraisal forms are not particularly useful. Instead, it is necessary to recognize that comparisons involve an overall subjective judgment to which a host of additional facts and impressions must somehow be added. There is no single form or way to do this. The best approach appears to be a ranking technique involving pooled judgment. The two most effective methods are alternation ranking and paired comparison ranking. 1. Alternation ranking: Ranking of employees from best to worst on a trait or traits is another method for evaluating employees. Since it is usually easier to distinguish between the worst and the best employees than to rank them, an alternation ranking method is most popular. Here subordinates to be rated are listed and the names of those not well enough to rank are crossed. Then on a form as shown below, the employee who is highest on the characteristic being measured and the one who is the lowest are indicated. Then chose the next highest and the next lowest, alternating between highest and lowest until all the employees to be rated have been ranked.2. Paired-comparison ranking:This technique is probably just as accurate as alternation ranking and might be more so. But with large numbers of employees it becomes extremely time consuming and cumbersome. Both ranking techniques, particularly when combined with multiple rankings (i.e., when two or more people are asked to make independent rankings of the same work group and their lists are averaged), are among the best available for generating valid order-of-merit rankings for salary administration purposes. Assessment centersSo far, we have been talking about assessing past performance. What about the assessment of future performance or potential? In any placement decision and even more in promotion decisions, some prediction of future performance is necessary. How can this kind of prediction be made most validly and most fairly? 360 Degree FEEDBACKSMany firms have expanded the idea of upward feedback into what the call 360-degree feedback. The feedback is generally used for training and development, rather than for pay increases. Most 360 Degree Feedback system contains several common features. Appropriate parties peers, supervisors, subordinates and customers, for instance complete survey, questionnaires on an individual. 360 degree feedback is also known as the multi-rater feedback, whereby ratings are not given just by the next manager up in the organizational hierarchy, but also by peers and subordinates. Appropriates customer ratings are also included, along with the element of self appraisal. Once gathered in, the assessment from the various quarters are compared with one another and the results communicated to the manager concerned. Another technique that is useful for coaching purposes is, of course, MBO. Like the critical incident method, it focuses on actual behavior and actual results, which can be discussed objectively and constructively, with little or no need for a supervisor to "play God." Variable objectives may cause employee confusion. It is also possible that fluid objectives may be distorted to disguise or justify failures in performance.ADVANTAGES OF PERFORMANCE APPRAISAL

Promotion:

Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case. Compensation:

Performance Appraisal helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. Performance Appraisal tries to give worth to a performance. Compensation packages which include bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority. Employees Development:

The systematic procedure of performance appraisal helps the supervisors to frame training policies and programmes. It helps to analyze strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programmes. Selection Validation:

Performance Appraisal helps the supervisors to understand the validity and importance of the selection procedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this regard. Communication:

For an organization, effective communication between employees and employers is very important. Through performance appraisal, communication can be sought for in the following ways: Through performance appraisal, the employers can understand and accept skills of subordinates. The subordinates can also understand and create a trust and confidence in superiors. It also helps in maintaining cordial and congenial labour management relationship. It develops the spirit of work and boosts the morale of employees.

All the above factors ensure effective communication.

Motivation:

Performance appraisal serves as a motivation tool. Through evaluating performance of employees, a persons efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him to improve his performance in the future. Measures an employees performance.

Helps in clarifying, defining, redefining priorities and objectives. Motivates the employee through achievement and feedback. Facilitates assessment and agreement of training needs. Helps in identification of personal strengths and weaknesses. Plays an important role in Personal career and succession planning. Clarifies team roles and facilitates team building. Plays major role in organizational training needs assessment and analysis. Improves understanding and relationship between the employee and the reporting manager and also helps in resolving confusions and misunderstandings. Plays an important tool for communicating the organizations philosophies, values, aims, strategies, priorities, etc among its employees. Helps in counseling and feedback.

DISADVANTAGES OF PERFORMANCE APPRAISALIf not done appropriately, can be a negative experience.Are very time consuming, especially for a manager with many employees.Are based on human assessment and are subject to rater errors and biases.If not done right can be a complete waste of time.Can be stressful for all involved.RATING ERRORS IN PERFORMANCE APPRAISALS

Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as 'rating errors'. These errors can seriously affect assessment results. Some of the most common rating errors are: - Leniency or severity: - Leniency or severity on the part of the rater makes the assessment subjective. Subjective assessment defeats the very purpose of performance appraisal. Ratings are lenient for the following reasons:a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect poorly on his or her own worthiness.b) He/She may feel that a derogatory rating will be revealed to the rate to detriment the relations between the rater and the ratee.c) He/She may rate leniently in order to win promotions for the subordinates and therefore, indirectly increase his/her hold over him.Central tendency: - This occurs when employees are incorrectly rated near the average or middle of the scale. The attitude of the rater is to play safe. This safe playing attitude stems from certain doubts and anxieties, which the raters have been assessing the rates.Halo error: - A halo error takes place when one aspect of an individual's performance influences the evaluation of the entire performance of the individual. The halo error occurs when an employee who works late constantly might be rated high on productivity and quality of output as well ax on motivation. Similarly, an attractive or popular personality might be given a high overall rating. Rating employees separately on each of the performance measures and encouraging raters to guard against the halo effect are the two ways to reduce the halo effect.Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively high or low score are given only to certain individuals or groups based on the rater's attitude towards them and not on actual outcomes or behaviors; sex, age, race and friendship biases are examples of this type of error.Primacy and Regency effects: - The rater's rating is heavily influenced either by behavior exhibited by the ratee during his early stage of the review period (primacy) or by the outcomes, or behavior exhibited by the ratee near the end of the review period (regency). For example, if a salesperson captures an important contract/sale just before the completion of the appraisal, the timing of the incident may inflate his or her standing, even though the overall performance of the sales person may not have been encouraging. One way of guarding against such an error is to ask the rater to consider the composite performance of the rate and not to be influenced by one incident or an achievement.Performance dimension order: - Two or more dimensions on a performance instrument follow each other and both describe or rotate to a similar quality. The rater rates the first dimensions accurately and then rates the second dimension to the first because of the proximity. If the dimensions had been arranged in a significantly different order, the ratings might have been different.Spillover effect: - This refers lo allowing past performance appraisal rating lo unjustifiably influence current ratings. Past ratings, good or bad, result in similar rating for current period although the demonstrated behavior docs not deserve the rating, good or bad.KEY CONCEPTS IN PMSIn order to understand the Performance Management System at BSNL, some concepts need to be explained which play a very important role in using the PMS successfully. They are: KRAS (KEY RESULT AREAS): The performance of an employee is largely dependent on the KRA score achieved by the employee during that particular year. Thus, it is necessary to answer a few basic questions i.e.What are the guidelines for setting the KRAs for an employee?How does an employee write down his KRAs for a particular financial year? How is the KRA score calculated for an employee on the basis of the targets sets and targets achieved?

BEHAVIORAL TRAITS: Some of the qualitative aspects of an employees performance combined with the general behavioral traits displayed by the employee during a year constitutes his behavior traits. An employee is assigned the rating on the basis of the intensity of the behavior displayed by him. They play a very important role in the deciding the final performance rating for an employee as is even capable of shifting the rating one level upwards/downwards.BHARTI 2013 LEADERSHIP COMPETENCY FRAMEWORK: This competency framework is a simple and structured way to describe the elements of behaviors required to perform a role effectively. This framework also tries to assess the performance of an employee objectively. THE PERFORMANCE RATING PROCESS: The rating process tries to explain the different types of rating that an employee can achieve. It also explains the criteria, which is considered for awarding any of these ratings to the employee. PROMOTION AND RATING DISRTRIBUTION GUIDELINES: The promotion and normal distribution guidelines provide the framework within which the performance appraisal process has to work. It is very important that the HR department pays due attention to these guidelines while preparing the bell curves for various functions and the consolidated bell curve for all the functions. These guidelines also help in deciding upon the promotion cases in a year.Performance Rating ProcessEXCEPTIONAL CONTRIBUTOR (EC)Performs consistently and substantially above expectations in all areasAchieves a final score greater than or equal to 115%Consistently delivers on stretch targetsIs proactiveSpots and anticipates problems, implements solutionsSees and exploits opportunitiesDelivers ahead of timeSees the wider picture-impacts across businessFocuses on whats good for the businessSeen as role model by othersRecognized as exceptional by other functions as wellMotivates others to solve problemsDevelops othersProvides open and honest feedbackAble to establish and lead cross-functional teams

SIGNIFICANT CONTRIBUTOR (SC)Performs above expectations in all areasAchieves final score between 100-114%Versatile in his/ her area of operation Develops creative solutions and require little / minimal supervision Sets examples for others Take ownership of own development Coaches others Demonstrates business initiative Is self motivated Supportive team player Leads own team very effectively Demonstrate functional initiative

Latham and Wexley (1994) refer to the performance appraisal as any personnel decision that affect the status of employees regarding their retention, termination, promotion, transfer, salary increase or decrease, or admission into training programs. This definition shows that performance appraisal is the key in controlling people within the organization. The definition by Latham and Wexley is in line with Fletcher and Williams (1986) as both of them claimed that performance appraisal is determined by the management and it is the central part of personnel management activity, linking it with almost every other aspect of human resource activity.In addition, Leap and Crino (1993) defined performance appraisal as a process of assessing the quantitative and qualitative aspects of an employees job performance. However, according to Sisson (1991), performance appraisal is the process whereby current performance in a job is observed and discussed for the purpose of adding to the level of performance. On the other hand, Harvey and Bowin (1996) defined performance appraisal as the accomplishment of employees assigned duties and the outcome produced in a specified job function or activity during a specified time period while performing their jobs. Milkovich & Boudreau (1997) referred to performance assessment or performance appraisal as the process that measures

employee performance and employee performance is the degree to which employees accomplish work requirements.Armstrong (1993) defined performance appraisal as a means of getting better result from the organization, teams and individual by understanding and managing performance within an agreed framework of planned goals, objectives and standards. However, according to Fletcher (2001) performance appraisal is a general heading for a variety of activities through which organizations seek to assess employees and develop their competence, enhance performance and distribute reward.

EFFECTIVENESS OF PERFORMANCE APPRAISAL

Performance appraisal effectiveness refers to the accuracy of performance observations and ratings as well as the ability of the performance appraisal process to improve the rates future performance (Cynthia, 1985). Hammond 1980, 1981(as cited in Cynthia 1985) has suggested that different types of tasks require different cognitive processes for effective performance. According to Feldman (in press) (as cited in Cynthia 1985), the cognitive processes engendered by different tasks affect raters perception and categorization of persons during performance appraisal, which influences recall and judgment. The rater must be trained to observe, gather, process, and integrate behavior-relevant information in order to improve performance appraisal effectiveness (Cynthia 1985).Lawler (1994) define that, reactions to appraisal and the appraisal process are believed to significantly influence the effectiveness and the overall viability of appraisal system. Scullen (as cited in Robert E, 2008) is reported that among the many outcomes of the appraisal process, accuracy of ratings and perceived effectiveness of the interview is critical. However, according to Ilgen (1992) the use of appraisal ratings as inputs to a range of administrative decisions, such as training and development, compensation and promotion contributed to the focus on appraisal accuracy as the primary criterion of appraisal effectiveness. Consistent with this emphasis, performance appraisal researchers Forgas and George (2001) in the past paid more attention to errors in information processing and judgments than to understanding what appraisers do well.Lawler, Mohrman, and Resnick 1984 (as cited in Clinton, Patrick, Kathlyn 1988) argued the need to better understand differences in managers and subordinates perceptions of the appraisal process. They postulated that performance appraisal systems will be effective (i.e accomplish the intended purpose) to extent that managers and subordinates have a shared perception of the purpose and function served by appraisal and the extent to which the process satisfies the needs of both parties.The functions effectively served by the appraisal process are a source of continuing debate, as academics seek to better understand the appraisal process and organizations seek way to increase its effectiveness. Further research suggests that having a technically sound appraisal system and procedure is not guarantee that an organizations appraisal process will be effective. Manager and subordinates must have a shared perception of the purposes and functions of the process and the belief that the appraisal process is useful to them on an individual basic. Thus, an effective appraisal is one that satisfies the needs of the parties involved in the process. To be effective managers must have not only the skills necessary to conduct effective appraisals but also the willingness to do so (Clinton and Stephen 1992).

JUSTICE AND FAIRNESSI.M Jawahar (2007) suggest that perception of fairness are important to all human resource processes, e.g. selection, performance appraisal, and compensation, and particularly so, to the performance appraisal process. Cardy and Dobbins, 1994 (as cited in I.M Jawahar, 2007) asserted that with dissatisfaction and feeling of unfairness in process and inequity in evaluations, any appraisal system will be doomed to failure. In practice perceived fairness of evaluation, the procedures used to evaluate performance, and the manner in which performance-related information is communicated likely play an integral role in shaping ratees reactions to critical elements of the appraisal process. (I.M Jawahar 2007). Besides that, Taylor (1995) has also acknowledged the importance of fairness to the success or failure of appraisal system.According to James Brown, 2007 (as cited in Abuduaini, 2009), he defines, fairness as equal treatment, receiving the same services and benefits as other people. Fairness means different thing to different people, and our view of whether or not something is fair often depends on the circumstances (Klesh, J.1979 as cited in Abuduaini, 2009). Konovsky, 2000 (as cited in Sharon and Mark 2008) argues that the importance of fairness lies in its role as a primary organizational value and in understanding the consequences of employee fairness perception. Research has demonstrated that perceptions of fairness result in increased favorable employee attitudes and behavior, such as organizational citizenship behaviors (Skarlicki and Latham 1996,1997 as cited in Sharon and Mark 2008) and organizational commitment (Folger and Konoveky 1989 as cited in Sharon and Mark 2008).Fairness and equity in performance appraisal can best be defined as the quality of being fair in a formal situation where no one person has an unfair advantage in indentifying, measuring, and managing human performance in an organization. This mean we must appraisal someone equally and in a formal situation (to put aside any relationship or misunderstandings with the person being appraised). If the performance rating mechanism is used accurately but is perceived by subordinates as unfair, it will have negative outcome. However, if it happened that performance appraisal mechanism is used inaccurately but perceived by subordinates as fair, a possibility of negative outcome can be hindered (Ab. Aziz Yusof, 2009, p.170).There are three components of justice that need to be upheld during the implementation of performance appraisal. These are distributive justice, procedural justice and interaction justice.Distributive justiceThe study of distributive justice deals with the perceived fairness of the outcomes or allocations that individuals in organizations receive (Folger and Cropanzano, 1998 as cited in Lawrence 2005). Distributive justice is based on the equity theory of motivation introduced by Adam Smith in 1965. According to him, individuals in the organization tend to compare their contribution and rewards with that of other individuals in the organization. Employees hope to get what they deserve, not less and not more. By comparing himself with others, the individual will tend to make more effort and be more committed if he/she finds that the rewards gained is just compared with others contribution and reward. On the other hand, if he/she perceives that his/her rewards are unfair compared with other peoples input and outcome, there is tendency that they will withdraw or make less effort or change their perception of inputs and outcomes. In other words, the employee is prepared to change his/her behavior, attitudes or both as result of his/her perception of distributive justice in the organization (Ab. Aziz Yusof,2009, p171).Procedural justiceThe study of procedural justice focuses in the fairness of methods that are used in organizations to arrive at distributive justice. It addresses fairness issues concerning the methods, mechanisms, and processes use to determine outcomes (Folger and Cropanzano, 1998 as cited in Lawrence 2005). Perception of procedural justice reflect an appraisal of the process by which an allocation decision is (or was) made (Folger and Cropanzano, 1998 as cited in Lawrence 2005). Procedural justice in performance appraisal emphasizes the process of evaluation during which decisions made are not in conflict with various parties involved in the process. Levental 1976, (as cited in Ab. Aziz Yusof 2009) also maintained that there are three principles affecting perceptions of procedural justice. There are:Correct ability rules- procedures should increase employee input into the decision process.Accuracy rules- procedures should enhance the accuracy of information used in the decision process.Bias suppression rules- procedures should discourage managers from using bias in their decision.Interaction justiceInteraction justice refers to justice appraisals based on the quality of the interpersonal treatment (people) receive (Bies and Moag, 1986, as quoted in Cropanzano and Randall 1993 as cited in Lawrence 2005). Bies and Moag argued for the inclusion of an intervening factor that influences perceptions of organizational justice. They held that organizational justice is a function of the procedures in place, the interaction among members, and resulting outcomes. A concern with interactional justice therefore involves raising questions about the type of interpersonal sensitivity and other aspects of social conduct that characterize social exchange between parties, including the explanation offered for certain decisions made about the individual (Folger and Cropanzano,1998 as cited in Lawrence 2005).According to Tyler and Bies 1989(as cited in Ab. Aziz Yusof 2009), procedural fairness is found to be a function of the perceived sincerity and adequacy of the explanation. This finding is particularly relevant to termination decision. An adequate explanation for a termination reduces the time taken by the subordinate, as well as colleagues, to come to terms with the situation. It help to focus the thinking and actions of the terminated subordinate toward looking for a new job. Greenberg & McCarty 1990(as cited in Ab. Aziz Yusof, 2009) claimed that the most important factor affecting perceptions of procedural justice is how subordinates feel about the quality of their interaction with the management. This emphasis on interaction justice may be especially important in minimizing wrongful dismissal suits, which often reflect a desire to get even with the person who made the decision to terminate the subordinate.

Findings AND ANALYSIS

1. Employees Opinion as to the Purpose of Performance AppraisalOptionsResponseYes84No16

2. Awareness of technique of Performance Appraisal being followed at BSNL among EmployeesOptionsResponseYes72No28

3. Number of Employees being appraised during their service period

OptionsResponseYes68No32

4. Employees opinion as to the present appraisal systemOptionsResponses (in %)Fully Satisfied2Satisfied24Cant Say44Dissatisfied30

5. Employee perception as to the frequency of appraisalOptionsResponse (in %)Once During The Service Period2Continuous92Never0Cant Say6

6. If continuous appraisal what should be the gap between two appraisal periodOptionsResponse (in %)Quarterly20Half Yearly44Yearly36

7. How Performance Appraisal affects the productivity of the employeesMotivatedIndifferentDemotivated+ Feedback3812-- Feedback121028Neutral242158. Who should do the appraisal?OptionsResponse ( in % )Superior24Peer0Subordinate0Self Appraisal8Consultant4All of the above48

9. Does appraisal help in polishing skills and performance area?OptionsResponse ( in % )Yes74No10Somewhat16

If the process of appraisal does not lead to the improvement of the skills and proficiency of the employees, the purpose of appraisal becomes illogical. In the survey conducted it was observed that nearly 74 % of the respondents agree that Performance Appraisal does leads to polishing the skills of the employees. Nearly 10 % of the respondents view that it does not serve this purpose and around 16 % were not able to respond as to whether it serve any such purposes or not.

10. Does personal bias creeps-in while appraising an employeeOptionsResponse ( in % ) Yes82 No18

In the process of appraising, both the parties are human being, that is, the one who is being apprised and the other who is appraising. Thus, there bound to be subjectivity involved, be it an objective way of appraising.Thus, when asked from among the sample size of 50 respondents, as huge as 82 % respond that personal bias do creep in while appraising an individual. Hence, it is inevitable to say that personal likings do not come in the process of appraisal. It is the extent to which the appraiser manages it so that it does not become very partial and bias.

11. Does personal bias creeps-in while appraising an employee

OptionsResponse ( in % ) Yes82 No18In the process of appraising, both the parties are human being, that is, the one who is being apprised and the other who is appraising. Thus, there bound to be subjectivity involved, be it an objective way of appraising.Thus, when asked from among the sample size of 50 respondents, as huge as 82 % respond that personal bias do creep in while appraising an individual. Hence, it is inevitable to say that personal likings do not come in the process of appraisal. It is the extent to which the appraiser manages it so that it does not become very partial and bias.

12. If given a chance, would employees like to review the current appraisal technique?OptionsResponse ( in % )Yes72No4Cant Say24

13. Appropriate method of conducting the performance appraisal

OptionsResponse ( in % )Ranking Method12Paired Comparison0Critical Incidents20MBO58Assessment Centre4360 degree6

14. Does performance appraisal leads to identification of hidden potential

OptionsResponse ( in % )Yes96No4

15. What in your opinion should be the time period of conducting continous appraisal?

Quaterly70%Yearly20%Half Yearly10%

16. Does performance appraisal helps in improving the productivity of employees?

Yes80%No20%

Should appraisal process be?

Continuous90%Never10%

After having analyzed the data, it was observed that practically there was no appraisal in the organization. To be an effective tool, it has to be on the continuous basis. This is the thing that has been mentioned time and again in the report, as, in the absence of continuity, it becomes a redundant exercise. Before actually deciding drafting what should be the kind of appraisal the following things should be taken care of:1. The very concept of performance appraisal should be marketed throughout the organization. Unless this is done, people would not accept it, be it how important to the organization.2. To market such a concept, it should not start at bottom, instead it should be started by the initiative of the top management. This would help in percolating down the concept to the advantage of all, which includes the top management as well as those below them. This means that the top management has to take a welcoming and positive approach towards the change that is intended to be brought.3. Further, at the time of confirmation also, the appraisal form should not lead to duplication of any information. Instead, detailed appraisal of the employees work must be done which must incorporates both the work related as well as the other personal attributes that are important for work performance.4. It should be noted that the appraisal form for each job position should be different as each job has different knowledge and skill requirements. There should not be a common appraisal form for every job position in the organization.5. The job and role expected from the employees should be decided well in advance and that too with the consensus with them. 6. A neutral panel of people should do the appraisal and to avoid subjectivity to a marked extent, objective methods should be employed having quantifiable data.7. The time period for conducting the appraisal should be revised, so that the exercise becomes a continuous phenomenon.8. Transparency into the system should be ensured through the discussion about the employees performance with the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that.

QUESTIONNAIRE1. Should the appraisal process be? a) Once during the service period b) Continuous c) Never d) Cant Say What in your opinion should be the time period of conducting continuous Appraisal?

a) Quarterlyb) Half Yearly c) Yearly Any specific reason Does Performance Appraisal helps in improving the productivity of the employees?

MotivatedIndifferentDemotivated+ Feedback- FeedbackNeutral Who in your opinion should appraise the employee?

a) Superiorb)Peer c) Subordinatesd) Self Appraisal e) Consultant f) All of the above Does the appraisal system helps in polishing the skills or performance area?

a) Yesb) No c)Somewhat Do you think personal bias creeps in while appraising an individual?

a) Yes b) NoIf given a chance or an opportunity would you like that the current appraisal procedure should be reviewed?

a) Yes b) No c) Cant SayWhat according to you should be the appropriate method for conducting performance appraisal?

a) Rating the employee on number of traits along with the range of performance for each by the supervisor. b) For every trait, each subordinate is paired with and compared to every otherSubordinate. c) Reviewing employees on the basis ofidentified specific examples of good or poor performance.d) Setting specific measurable goals with each employee and periodically reviewing the progress made.e) Reviewing performance through case studies, presentations, role playing, etc. For future performance. f) Receiving feedback from people whose views are considered helpful and relevant including the appraise himself. Does Performance Appraisal leads to identification of hidden potential of the employees?

a) Yes b)No Suggestions and views...............................Employees Opinion as to the Purpose of Performance AppraisalYes b) No. Awareness of technique of Performance Appraisal being followed at BSNL among Employees.

a) Yes b) No 13. Number of Employees being appraised during their service period a) Yes b) no 14. Employees opinion as to the present appraisal system a) Satisfied b) fully satisfied c) Cant say d) not satisfied 15. Employee perception as to the frequency of appraisal. a) Once b) continuous c) Never d) cant say16. Does performance appraisal helps in improving the productivity of employees? a) Yes b) NO 17. What should be the gap between two appraisal periods? a) Quarterly b) half yearly c) yearly

Thank you, Date --/--/--

BIBLIOGRAPHY

Wikipedia

www.bsnl.com

Gupta C.B., Human Resource Management, Sultan Chand & Sons, New Delhi.

Dcenzo & Robbins Human Resource Management, Prentice-Hall International