this is very dynamic project created by me...

1. 1
A PROJECT REPORT
ON
“PERFORMANCE APPRAISAL”
SUBMITTED IN THE PARTIAL FULFILLMENT OF THE DEGREE OF
MASTER’S OF BUSINESS ADMINISTRATION
SUBMITTED TO:-
SACHIN VERMA (HOD-MBA)
SUBMITTED BY:-
MD MUSTAQUIM ALAM
MBA
ROLL NO: 1355376
KC College Of Engineering & Information Technology.
Nawanshahr (Punjab)

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KC College Of Engineering & Information Technology.
Nawanshahr- 144514
DEPARTMENT OF MANAGEMENT STUDIES
CERTIFICATE
This is to certify that the project entitled “PERFORMANCE APPRAISAL” withreferenceto
BHARAT SANCHAR NIGAM LTD (BSNL) is submitted by MD MUSTAQUIM ALAM on partial
fulfillment of the requirement for the award of degree of Master of Business Administration, in
KC College Of Engineering & Information Technology
Affiliated to Punjab Technical University, Jalandhar is a bonafied piece of survey work
conducted under my supervision and guidance and no part of this project has been submitted by
any other degree.
Project Guide
Date:- Mr. Surabjit Sing

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STUDENT DECLARATION
KC College Of Engineering & Information Technology.
I hereby declare that the project titled “PERFORMANCE APPRAISAL”is an original piece of
research work carried out by me under the guidance and supervision of Mr. Sarbjit Singh The
information has been collected from genuine & authentic sources. The work has been submitted
in partial fulfillment of MASTER OF BUSINESS ADMINISTRATION of Punjab Technical
University, Jalandhar.
Date:
MD MUSTAQUIM ALAM

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ACKNOWLEDGEMENT
I am very thankful to the entire team of BHARAT SANCHAR NIGAM LTD for their
cooperation, without which completion of this project would not have been possible.
I am extremely grateful to Mr. MAHESH TRIPATHI (HR MANAGER) for providing
me with valuable insights about the base metals. I would like to thank him for the patience shown
by him and being of such a great help to all my queries.
I express my sincere gratitude to Prof. SACHIN VERMA, Principal of Kc Group of
Institutions for giving to me this opportunity to carry out this project.
I would like to thank Mr. SARABJIT SINGH for his valuable guidance and
encouragement and constructive suggestions throughout the project work.
Finally I thank to my parents for their continue support and help in the completion of my
project.
MD MUSTAQUIM ALAM.

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PREFACE
Modern organizations are highly complex and dynamic systems. They operate under very
turbulent social economic and political environment. They are required to reconcile several
incompatible goals. Conflicting roles and divergent interest they are also fraught with the use
risk and uncertainties, hence tactful management of such organization to plan to execute guide,
coordination and control the performance of people to achieve predetermined goals.
Management has to keep the organization vibrant moving and in equilibrium. It has to
achieve goal which themselves are changing it is therefore a problem highly complex and
ticklish.
The marketing research is the process which links to manufacture, dealers and individuals
through information in important part of curriculum of Post Graduate Diploma in Management,
programme is project taken by the students in any business organization, after completion of
third trimester of the programme.
The objective of this project is to enable the students to understand the application of the
academics in the real business life. I am fully confident that this project will be extremely
useful to the management.

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TABLE OF CONTENT
CONTENT PAGE NO.
 Company profile 6-16
 Introduction to Topic 17-38
 Performance appraisal process
 Performance appraisal process at
Reliance HR Services private Ltd.
 Research Methodology 39-46
 Analysis & Interpretation 47-58
 Limitation 59-60
 Suggestion & Conclusion 61-63
 Bibliography 64
 Questionnaire 65-67

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COMPANY PROFILE

8. 8
INTRODUCTION
TYPE COMMUNICATION SERVICE PROVIDER
AVAILABILITY COUNTRYWIDE
OWNER GOVERNMENT OF INDIA
KEY PEOPLE CHAIRMAN & DIRECTOR-RAJESH KUMAR
UPADHYAY
FOUNDED 19TH CENTURY, INCORPRATED IN 2000
WEBSITE WWW.BSNL.IN

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OVERVIEW OF THE BSNL:
BSNL is India's oldest and largest Communication Service Provider (CSP). Currently BSNL
has a customer base of 64.8 million (Basic & Mobile telephony). It has footprints throughout
India except for the metropolitan cities of Mumbai and New Delhi which are managed by
MTNL. As on March 31, 2007 BSNL commanded a customer base of 33.7 million Wire line,
3.6 million CDMA-WLL and 27.5 million GSM Mobile subscribers. BSNL's earnings for the
Financial Year ending March 31, 2006 stood at INR 401.8b (US$ 9.09 b) with net profit of
INR 89.4b (US$ 2.02 billion). Today, BSNL is India's largest Telco and one of the largest
Public Sector Undertaking of the country with authorized share capital of US$ 3.95 billion
(INR 17,500 Crore) and net worth of US$ 14.32 billion.
PROFILE OF ORGANISATION:
 OVER VIEWS OF ORGANISATION
HISTORY:-
The foundation of Telecom Network in India was laid by the British sometime 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 Mahanagar Telephone Nigam Limited (MTNL) was carved out
of DoT to run the telecom services of Delhi and Mumbai. It is a well known fact that BSNL was
carved out of Department of Telecom to provide level playing field to private telecoms.
Subsequently in 1990s the telecom sector was opened up by the Government for Private
investment, therefore it became necessary to separate the Government's policy wing from
Operations wing. The Government of India corporatized the operations wing of DoT on October
01, 2000 and named it as Bharat Sanchar Nigam Limited (BSNL).BSNL operates as a public
sector.

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“MAIN SERVICES BEING PROVIDED BY BSNL”
BSNL provides almost every telecom service, however following are the main
Telecom Services being provided by BSNL in India:-
1. UNIVERSAL TELECOM SERVICES: Fixed wire line services & Wireless in Local
loop (WLL) using CDMA Technology called bfone and Tarang respectively. BSNL is
dominant operator in fixed line. As on March 31, 2007 (end of financial year) BSNL had
76% share of fixed and WLL phones.
BSNL MOBILE PRE-PAID MOBILE
2. CELLULAR MOBILE TELEPHONE SERVICES: BSNL is major provider of
Cellular Mobile Telephone services using GSM platform under brandname Cellone. Pre-
paid Cellular services of BSNL are know as Excel. As on March 31, 2007 BSNL had 17%
share of mobile telephony in the country.
BSNL Broadband
3. INTERNET: BSNL is providing internet as dial-up connection (Sancharnet) and ADSL-
Broadband Data one. BSNL has around 50% market share in broadband in India. BSNL
has planned aggressive rollout in broadband for current financial year.
4. Intelligent Network (IN): BSNL is providing IN services like televoting, toll free calling,
premium calling etc.

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 BSNL PRESENT & FUTURE
Since its corporatisation in October 2000, BSNL has been actively providing Connections in both
Urban and Rural areas and the efficiency of the company has drastically improved from the days
when one had to wait for years to get a phone connection to now when one can get a connection
in even hours. Pre-activated Mobile connections are available at many places across India. BSNL
has alsounveiled very cost-effective Broadband internet access plans (DataOne) targetedat homes
and small businesses. At present BSNL enjoy's 47% of market share of ISP services.
Year of Broadband 2007
Former Indian Communications Minister Thiru Dayanidhi Maran had declared year 2007 as
"Year of Broadband" in India and BSNL is gearing up to provide 5 million Broadband
connectivity by the end of 2007. BSNL has upgraded existing Dataone (Broadband) connections
for a speed of up to 2 Mbit/s without any extra cost. This 2 Mbit/s broadband service is being
provided by BSNL at a cost of just US$ 5.5 per month. Further, BSNL is planning to upgrade its
broadband services to Triple play (telecommunications) in 2007.
BSNL has been asked to add 108 million customers by 2010 by Former Indian Communications
Minister Thiru Dayanidhi Maran. With the frantic activity in the communication sector in India,
the target appears achievable, however due to intense competition in Indian Telecom sector in
recent past BSNL's growth has slowed down.
BSNL is pioneer of Rural Telephony in India. BSNL has recently bagged 80% of US$ 580 m
(INR 2,500 crores) Rural Telephony project of Government of India.

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CHALLENGES:-
During Financial Year 2007-2008 (From April 01, 2006 to March 31, 2007) BSNL has added 9.6
million new customers in various telephone services taking its customer base to 64.8 million.
BSNL's nearest competitor Bharti Airtel is standing at a customer base of 39 million. However,
despite impressive growth shown by BSNL in recent times, the fixed line customer base of BSNL
is declining. In order to woo back its fixed-line customers BSNL has brought down long distance
calling rate under One India plan, however, the success of the scheme is not known. However,
BSNL faces bleak fiscal 2006-2007 as users flee, which has been accepted by the CMD BSNL.
Presently there is an intense competition in Indian Telecom sector and various Telco’s are rolling
out attractive schemes and are providing good customer services. However, BSNL being legacy
operator and its conversion from a Government Department earns lot of criticism for its poor
customer service. Although in recent past there have been tremendous improvement in working of
BSNL but still it is much below the Industry's Expectations. A large aging (average age 49 years
(appx)) workforce (300,000 strong), which is mostly semiliterate or illiterate is the main reason
for the poor customer service. Further, the Top management of BSNL is still working in BSNL on
deputation basis holding Government employee status thus having little commitment to the
organisation. Although in coming years the retirement profile of the workforce is very fast and
around 25% of existing workforce will retire by 2010, however, still the workforce will be quite
large by the industry standards. Quality of the workforce will also remain an issue.
Access Deficit Charges (ADC, a levy being paid by the private operators to BSNL for provide
service in non-lucrative areas especially rural areas) has been slashed by 37% by TRAI, w.e.f.
April 01, 2007. The reduction in ADC may hit the bottom-line of BSNL.

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VISION
To become the largest telecom Service Provider.
MISSION
 To provide world class State-of-art technology telecom services to its
 Customers on demand at competitive prices.
 To Provide world class telecom infrastructure in its area of operation and to
Contribute to the growth.
OBJECTIVE:-
 MP Telecom looks over the management, control and operation of the telecom
 network with the following aims and objective
 To build a high degree of customer confidence by sustaining quality and
reliability in service.
 To upgrade the quality of telecom service to international level.
 Provision of telephone connections on demand in all the villages of M.P.
 Expansion of new services like Internet, Intelligent Network, ISDN, Internet
Telephone, Video Conferencing, Broadband etc.
 Popularize Broadband Services and to be on-demand in the whole State.
 Expansion of Cellular Mobile Telephone to all towns.
 To open Internet Kiosks (Cafe's) at all Block Head Quarters.
 To improve the quality of present services being given to the subscribers.
 To open more Customer Service Centers and upgrade the existing Customer
Service Centers for better and friendly Customer care.
 Modernize PSTN network by making RSUs & AN-RAX.
 Plantation of Trees to make environment Clean & Green.
 To raise necessary financial resources for its developmental needs.

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Products
• BSNL LANDLINE
• BSNL MOBILE
_ POSTPAID
_ PREPAID
_ UNIFIED MESSAGING
_ GPRS/WAP/MMS
_ DEMOs
_ TARIFF
• BSNL WLL
• INTERNET SERVICES
_ NETWORK
_ BROADBAND
_ WI-FI
_ CO-LOCATION SERVICE
_ BSNL WEB HOSTING
_ DIAL UP INTERNET
_ SMS& BULK SMS
• BSNL BROADBAND
• BSNL MANAGED NETWORK SERVICES
• BSNL MPLS-VPN
• ISDN
• LEASED LINE
• INTELLIGENT NETWORK

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_ FREE PHONE SERVICE
_ PREMIUM RATE SERVICE
_ INDIA TELEPHONE CARD
_ VIRTUAL PRIVATE NETWORK (VPN)
_ VOICE VPN
_ UNIVERSAL NUMBER
_ UNIVERSAL PERSONAL NUMBER
_ TELE VOTING
• VIDEO CONFERENCING
• AUDIO CONFERENCING
• TELEX/ TELEGRAPH
• EPABX
_ EPABX
_ FREE EPABX
_ CENTREX
• HVNET
• INMARSAT
• TRANSPONDER
SWOT Analysis
(Strength / Weakness/ Opportunities / Threats)
● Strength
The telecom sector is poised for continued high growth and our company is well placed to benefit
from this phenomenon. BSNL is the largest telecom operator providing all kind of telecom
services throughout the country. The widest network reach of the company is its USP.

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● Weakness
BSNL being Government Company has no any major weakness in the business.
● Opportunities
Having biggest infrastructure provider it is easy for company to enter into any area. BSNL has
vast range of product as well as better infrastructure it makes the to deal with any kind of
customer. Dealing in urban area now it has also opportunities in rural area.
● Threats
The company operates in an industry, which is highly competitive and faces intense Competition
from other service provider, who enjoy certain advantages in their Procurement as well as in
selection of technology.

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BSNL have several regional offices to localize
its operations in India
REGIONAL OFFICES
OF
BSNL
DEHRADUN
LUCKNOW
DELHI
MEERUT

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GROWTH PLAN OF BSNL
BSNL's future plan include a fast expansion programme of increasing the present 93 million lines
to twice that number by 2012 and some 120 million lines by 2013.
The shift in demand from voice to data domination, and from wire line to wireless, has
revolutionized the very nature of the network. BSNL has already set in place several measures
that should enable it to evolve into a fully integrated multi-operator by 2009 and its incumbent
status, size, infrastructure and human resource should certainly, give it a distinct advantage.
Consolidation of the network and maintaining high quality of service comparable to International
standards is the key aim of the Growth Plan. Objective of the plan are:
 The telephone connection shall be provided on demand and it shall be sustained.
 The Network shall be made fully digital. All the technologically obsolete analog exchanges
will be replaced with digital exchanges.
 To provide digital transmission links up to all SDCAs.
 Digital connectivity shall be made available to all the exchanges by 2007-09
 Extensive use of Optical fiber System in the local, Junction and long distance network so as to
make available sufficient bandwidth for the spread of Internet and Information technology.
 ISDN services shall be extended to all the district headquarters, subject to demand.
 To provide Intelligent Network Services, progressively all over the country (major cities have
already been covered).
 To set up Internet Nodes progressively up to District headquarters level.
Upgrading existing STD/ISD PCOs to full fledged Public Tele-Info Centers (PTIC) for
supporting Multi media capability and Internet Access

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INTRODUCTION
OF
TOPIC

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PERFORMANCE APPRAISAL
Management Performance appraisal is a method of 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

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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.

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Usually the immediate supervisor must be interested with the task of rating the assessee because
he his most familiar with his work, and because he is also responsible for recommending or
approving personal action based on the performance appraisal. The staff specialists, i.e. the
personal officer also do appraisal.
They may advise the supervisor while evaluating their subordinates stressing the need for
evidence for making specific appraisal judgments and comparing a particular subordinate’s
evolution with those 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 there present
jobs.
b) Highlighting employee needs and opportunities for personal growth and development.
c) Promoting understanding between the supervisor and his subordinates.

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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”
The where indicates the lo0cation where an employee may be evaluated. It is usually done at the
place of work or office of the supervisor.
“HOW”
Under how the company must decide what different methods are available and which of these
may be used for performance appraisal. Based on the comparative advantages and disadvantages
it is decided which method suit the propose best.
PURPOSE OF PERFORMANCE APPRAISAL
 To create and maintain a satisfactory level 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 there scores with performance appraisal ranks.

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 To facilitate fair and equitable compensation based on performance.
 To help the superiors to have proper understanding about there subordinates.
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.

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OBJECTIVE OF PERFORMANCE APPRAISAL
A good performance appraisal has following objectives:-
 Help employee to improve weaknesses and improve his strengths, and thus enable him to
improve his performance and that of the department.
 Generate adequate feedback and guidelines from the reporting officers to the employee.
 Contribution to the growth and development of the employee thru helping in realistic goal
setting
 Help identifying employees for the porpoise of motivating, training and developing them.
 Generate significant relevant, free and valid information about employees thus good
performance appraisal and review system should primarily focus on employee development
METHODS OF APPRAISAL
Broadly all the approaches to appraisal can be classified into:-
 Past-oriented:
 Rating scales
 Checklist

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 Forced choice method
 Forced distribution
 Critical incident method
 Behaviorally anchored’ scales
 Field review method
 Annual confidential report
 Essay method
 Cost accounting approaches
 Ranking method
 Paired – comparison method
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:

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In this the rater is given a series of statements about employee. These statements are
arranged in block of two or more, and the rater indicates which statements is most or least
disruptive of the employee.
 Critical incident method
The, approaches focus on certain critical behaviors of an employee that makes all the
difference between effective and non effective performance of a job. Such incidents are
recorded by the superiors as and when they occur.
 Behaviorally Anchored Rating Scales
Sometimes this is called behavioral expectation scales, are rating scales whose scale point
are determined by statements of effective and ineffective behaviors. A rater must indicates
which behavior on each scale best describes an employee’s performance.
 Field review method
This is an appraisal by someone outside the assesses on department usually someone from
the corporate office or H.R department. The outsider review employee records and holds
interviews with the rate and his or her superior . the method is primarily used for make
promotional decision at the managerial level.
 Annual confidential report method
In this method each employee is rated confidentially by one or more senior officers for his
performance. The report deals with the years work and general opinion of the rater
towards the employee. The main problem with his method is that it is not data based and
the appraisal is done the bases of impression.
 Easy method
In the essay method, the rater must describe the employee with in a number of broad
categories such as-
a) The rater’s overall impression of the employee’s performance
b) The promotability of the employee
c) The jobs that the employee is now able or qualified to perform

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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.
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.
a) Paired – Comparison method :-
Under this method the appraiser compares each employee with every other employee, one
at a time. The number of comparisons may be calculated with the help of formula, which
reads thus-:
N (N-1)/2
360 DEGREE PERFORMANCE APPRAISAL
Typical appraisers are: supervisors, peers, subordinates employees themselves users of
service and consultants. Performance appraisal by all these parties is called” 360
DEGREE PERFORMANCE APPRAISAL”
1. Supervisors:
Supervisors include superiors of the employee other superiors having knowledge about
the work of the employee and department head or manager. General practices is that
immediate superiors appraise the performance, hitch in turn reviewed by the departmental
head /manager.
2. Peers:-

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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.
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:-
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.

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

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7) Job Decision Errors:-
Poor performance may be a system of ill-conceived job designs. Appraisals help
diagnose these others.
8) Feedback to human resource:-
Good/bad performance throughout the organization indicates how well the
human resource function is performing.

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STAGES OF PERFORMANCE APPRAISAL
PROCESS
1
• PERFOMANCE STANDEARDS ARE ESTABLISHED
2
• INFORM THESE STANDARDS
3
• INSTRUCTION GIVEN FOR APPRAISAL
4
• FINDIND OUT THE INFLUENCE
5
• COMPARING THE PERFORMANCE
6
• FINDING OUT DEVIATION
7
• COMMUNICATING, THE ACTUAL PERFORMANCE
8
• SUGGESTING NECESSARY CHANGES
9
• FOLLOW-UP OF PERFORMANCE APPRAISAL REPORT

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Performance Appraisal is a Nine-Step Process
 At the First stage, performance standards are established based on job description and job
specification. The standard should be clear, objective and incorporate all 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 employees doing the
same job and discuss with them 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.

34. 34
PROBLEMS OF PERFORMANCE APPRAISAL
The major problem in performance appraisal :-
1) Rating Biases:-
The problem subjective measure (is that rating which is not verifiable by
others) has the opportunity for biases include:-
a) Halo effect
b) The error of central tendency
c) The leniency and strictness biases
d) Personal prejudice
e) The Recency effect
 Halo Effect:-
It is the tendency of the raters to defend excessively on the rating of one trait or
behavioral consideration in rating all other traits or behavioral consideration. One way
of minimizing the halo effect is appraising all the employee by one trait before going
to rate basis of another trait.
 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.

35. 35
 The leniency and Strictness:-
The leniency bias crops when some raters have an tendency to be liberal in their
rating by assigning higher rates consistently such rating do not several any purpose
equally damaging one is assigning consistently low rates.
d) Personal Prejudice : -
If the rater dislike any employee or any group, he may rate them at the lower
them which may distort the rating purpose affect the career of these employee.
 The 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 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.

36. 36
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:-
 Safe and Friendly Work Environment-:
What sort of environment are you providing your employees.
 Use of Employees-:
Is the business maximizing 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?

37. 37
PERFORMANCEMATRIX
In principle the individual performance matrix (IPM) can be notionally divided into two
parts-:
 Team matrix
 Individual Matrix
KRA 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

38. 38
scope to earn separate credit points for an individual through safety suggestion and reporting
of “near misses ” and unsafe acts/ conditions/
KRA 8
(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.

39. 39
Disciplinary Action
It will be deemed to be complete when the matter is brought to logical
Conclusion resulting in either appropriate punishment or withdrawal of
Charge sheet. However no debit will be accrued in the event of
Prolonged enquiry beyond the control of the employee. Further for the
Discipline violations not reported and discovered.
Tier - II
The appraisal for managerial key dimension determined carder wise
With 20% weightage.
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.

40. 40
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-:
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.

41. 41
RESEARCH METHODOLOGY

42. 42
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

43. 43
c) Determining Data Sources
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 JALANDAR
Punjab

44. 44
RESEARCH PROBLEM
I have selected that PERFORMANCE APPRAISER as research problem for my summer training
project.
As a research problem is the situation that causes the researcher to feel apprehensive,
confused and ill at ease. It is the demarcation of a problem area within a certain involving the
WHO or WHAT the WHERE the WHEN and the WHY of the problem situation.
RESEARCH OBJECTIVE
How productivity relates with performance appraisal. In addition, the major factors of
performance appraisal, which have taken a part in increasing productivity of the organization.
RESEARCH INSTRUMENT USED
 QUESTIONNAIRE:
The term questionnaire usually refers to a self administered
processes whereby he respondent himself read the question and records without the assistance of
an interviewer.
 INTERVIEW
The interview method of collection data involves presentation of oral- verbal
stimuli and reply in terms of oral-verbal response.

45. 45
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.

46. 46
RESEARCH INSTRUMENTS USED:
I have used the following research instrument in my project.
 QUESTIONNAIRE-:
The term questionnaire usually refers to a self – administered process whereby the respondent
himself read the question and records without the assistance of an interviewer.
 INTERVIEW-:
The interview method of collection data involves presentation of oral-verbal stimuli and
reply in terms of oral- verbal response.
SAMPLING TECHNIQUE USED
When field studies are under are under taken in practical life, consideration of time cost and
some other factors almost invariably lead to selection of respondents. The selected
respondents constitutes a sample and the selection process is called 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.

47. 47
SAMPLE SIZE
When a survey is undertaken and when it is not possible to cover the entire population the
researcher has to answer the basic question – how large should be sample be the sample size
decision is related directly to research cost.
The intended sample size is the number of participants planned to be included in the trial,
usually determined by using a statistical power calculation. The achieved sample size is the
number of participants enrolled, treated or analyzed in the study.
I have taken 50 people in my sample size as the sample size should be neither so small nor so
large.
METHOD USED FOR DATA COLLECTION
The task of data collection begins after a research after a research problem has been defined
and research design chalked out. While deciding about the method of data collection to be
used for the study the researcher should keep in mind two types of data-:
1) Primary Data
2) Secondary Data
1. PRIMARY DATA
Those data that have been observed and recorded by the researcher for the first time in
their knowledge.
Sources:
 Questionnaire
 Interview method

48. 48
2. SECONDARY DATA:
Those data that have been compile by some agency other than user.
Sources:
 Company profile
 Magazine
 Internet
 Books
 Previous report
ANALYTICAL TOOLS USED
The term analysis refers to the computation of certain measures along with searching for pattern
of relationship that exists among data group. Analysis is essential for a scientific study and for
ensuring that we have all relevant data for making contemplated comparison. Therefore , I have
used Tabulation, Graphs &charts in my project.

49. 49
DATA ANALYSIS

50. 50
1. Are you aware of the objective of the performance appraisal system?
OPTIONS
NO OF
RESPONDENT(SAMPLE
SIZE 50)
PERCENTAGE
VERY MUCH 42 84%
SOME WHAT 7 14%
DON’T KNOW 1 2%
INTERPRITATION- 84% Employees are aware of the object of the performance
appraisal system.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
very much
some what
don't know

51. 51
2. Performance appraisal helps the organization in achieving goal.
OPTIONS
NOS OF
RESPONDENT(Sample
size 50)
PERCENTAGE
YES 38 76%
NO 10 20%
DON’T KNOW 2 4%
INTERPRITATION- 76% Employees say yes that performance
appraisal helps the organization in achieving goal.
Series 1
Series 2
Series 3
0
10
20
30
40
50
60
70
80
yes
no
don't know

52. 52
3. Hold meeting in the beginning of the year to explain & clarify activity task & goals to
be achieved.
OPTIONS
NOS OF
RESPONDENT(Sample
size 50)
PERCENTAGE
YES 39 78%
NO 11 22%
INTERPRITATION-: 78% Employees say that yes organized
meetings helps goal and task. While the other 22% employees that is
not very much helpful.
0
10
20
30
40
50
60
70
80
yes
no

53. 53
4. Organization has to make a fixed duration for performance appraisal.
OPTIONS
NOS OF
RESPONDENT (Sample
size 50)
PERCENTAGE
YES 40 80%
NO 10 20%
INTERPRITATION-: 80% Employees agree with that is organization should have
to make a fixed duration for performance appraisal. While the other 20% employees do
not agree with this statement.
0
10
20
30
40
50
60
70
80
90
yes no

54. 54
5. Satisfied for point allocation on the basis of KRA’s & managerial dimension.
OPTIONS
NOS OF
RESPONDENT(Sample
size 50)
PERCENTAGE
FULLY SATISFIED 20 40%
SATISFIED 26 52%
DISSATISFIED 2 4%
UNCERTAIN 2 4%
INTERPRITATION-: 40% Employees are fully satisfied for point
allocation on the basis of KRA’s and managerial dimension.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
fully satisfied
satisfied
dissatisfied
uncertain

55. 55
6. Performance appraisal affects the working efficiency of employees.
OPTIONS
NOS OF
RESPONDENT(Sample
size 50)
PERCENTAGE
YES 42 84%
NO 8 16%
INTERPRITATION-: 84% Employees say that yes performance
appraisal system affect the working efficiency of employee. While the
other 16% employees do not agree with this statement.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
yes
no

56. 56
7. Appraisal system is able to develop high result orientation approach.
OPTIONS
NOS OF
RESPONDENT(Sample
size 50)
PERCENTAGE
YES 47 94%
NO 3 6%
INTERPRITATION-: 94% Employees say that yes the appraisal
system is able to develop high result orientation approach. While the
other 6% employees do not agree with us.
Series 1
0
20
40
60
80
100
yes
no

57. 57
8. The systems will also contribution in potential appraisal.
OPTIONS
NOS OF
RESPONDENT(Sample
size 50)
PERCENTAGE
YES
36 72%
NO
10 20%
DON’T KNOW
4 8%
INTERPRITATION-:72% employees think that the systems will also Contribution
in potential appraisal.
0
10
20
30
40
50
60
70
80
yes no don't know

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9. Promotion process in the organization is based on –
OPTIONS
NOS OF
RESPONDENT(Sample
size 50)
PERCENTAGE
PERFORMANCE 2 4%
EXPERIENCE 6 12%
BOTH 42 84%
INTERPRITATION-: 4% employees say that promotion says that
process in the organization is based on performance, 12%
employees say that based on experience and 84% say both.
0
10
20
30
40
50
60
70
80
90
Performance experience both

59. 59
10 .The present performance appraisal system is transparent &
Free from bias.
OPTIONS
NOS OF
RESPONDENT(Sample
size 50)
PERCENTAGE
YES 42 84%
NO 8 16%
INTERPRITATION-: 84% Employees agree with this statement that the
present performance appraisal system is transparent and free from bias.
Series 1
0
20
40
60
80
100
YES
NO

60. 60
11 .Satisfied with the current performance appraisal system.
OPTIONS
NOS OF
RESPONDENT(Sample
size 50)
PERCENTAGE
HIGHLY SATISFIED 27 54%
SATISFIED 18 36%
DISSATISFIED 1 2%
JUST SATISFIED 4 8%
INTERPRITATION-: 54% Employees are highly satisfied with the current Performance
appraisal system. While 36% employees are satisfied with the current performance appraisal
system.
0
10
20
30
40
50
60
Highly satisfied Satisfied Dissatisfied Just satisfied

61. 61
LIMITATIONS

62. 62
LIMITATIONS
A few limitations and constraints came in way of conducting the present study, under which the
researcher had to work are as follows:
Ø Although all attempts were made to make this an objective study, biases on the part
of respondents might have resulted in some subjectivity.
Ø Though, no effort was spared to make the study most accurate and useful, the
“sample Size” selected for the same may not be the true representative of the
Company, resulting in biased results.
Ø This being the maiden experience of the researcher of conducting study such as this,
the possibility of better results, using deeper statistical techniques in analyzing and
interpreting data may not be ruled out.

63. 63
SUGGESTIONS
AND
CONCLUSION

64. 64
SUGGESTIONS
After having analyzed the data, it was observed that practically there was no appraisal in
the organization. To be an effective tool, it has to be on the continuous basis. This is the
thing that has been mentioned time and again in the report, as, in the absence of
continuity, it becomes a redundant exercise. Before actually deciding drafting what
should be the kind of appraisal the following things should be taken care of:
1. The very concept of performance appraisal should be marketed throughout the
organization. Unless this is done, people would not accept it, be it how important to
the organization.
2. To market such a concept, it should not start at bottom, instead it should be started
by the initiative of the top management. This would help in percolating down the
concept to the advantage of all, which includes the top management as well as those
below them. This means that the top management has to take a welcoming and
positive approach towards the change that is intended to be brought.
3. Further, at the time of confirmation also, the appraisal form should not lead to
duplication of any information. Instead, detailed appraisal of the employee’s work
must be done – which must incorporates both the work related as well as the other
personal attributes that are important for work performance.
4. It should be noted that the appraisal form for each job position should be different as
each job has different knowledge and skill requirements. There should not be a
common appraisal form for every job position in the organization.
5. The job and role expected from the employees should be decided well in advance
and that too with the consensus with them.

65. 65
6. A neutral panel of people should do the appraisal and to avoid subjectivity to a
marked extent, objective methods should be employed having quantifiable data.
7. The time period for conducting the appraisal should be revised, so that the exercise
becomes a continuous phenomenon.
8. Transparency into the system should be ensured through the discussion about the
employee’s performance with the employee concerned and trying to find out the
grey areas so that training can be implemented to improve on that.
Ideally in the present day scenario, appraisal should be done, taking the views of all
the concerned parties who have some bearing on the employee. But, since a change
in the system is required, it cannot be a drastic one. It ought to be gradual and a
change in the mindset of both the employees and the head is required.

66. 66
CONCLUSION
At lastly I would like to draw my conclusion in this topic performance appraisal system. It is one
of the crucial issues where employees expect good results which lead to high satisfaction.
This appraisal even acts as a feedback system, which plays a major role in the development of
the organization through erasing the communication barriers between the superior and the
subordinate. In the present scenario system brings up the organization with rich productivity.
A good system of performance appraisal comes out through perfect rating of the employees and
their feedback for the given rating. The system should work so the things to be done through the
people.
HCCBPL occupied a prominent position in the industry in its products and it has been achieving
its objectives despite of obstacles faced and stood at a good position with a perfect vision.
The employees of HCCBPL are satisfied with the system of appraisal followed there, because of
its concern and consideration towards the employees by the management.
Finally I conclude my topic “performance appraisal ”, the work and the related issues were
drastically changed when compared to the past.
Performance appraisal is a sensitive issue because it not only appraisal for the achievers but also
punishments and warnings to the low contributors. Everything done by the organization should be
accepted the employees and even make the perceive that it is done for the good sake of
employees. This factor is quite crucial for any organization to achieve its objectives.

67. 67
BIBLIOGRAPHY
BOOKS-
Human Resource - V.S.P Rao
Research Methodology - C. R. Kothari
BSNL Manual - Company Magazines
 Annual Report of Organization
 Internal Records of Organization
WEBSITES- www.bsnl.net
www.bsnl.co.in

68. 68
QUESTIONNAIRE
(PERFORMANCE APPRAISAL SYSTEM AT B.S.N.L)
Name…………………………………………………………………..
Designation……………………………………………………………
Department……………………………………………………………
1) Are you aware of the objective of the performance appraisal system?
a) Very much
b) 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 to explain & clarify activity task & goals to be achieved?
a) Yes
b) No
4) Should organization have to make a fixed duration for performance appraisal?
a) Yes
b) No
5) To what extent are you satisfied for point allocation on the basis of KRA’s & managerial
dimension?

69. 69
a) Fully satisfied
b) Satisfied
c) Dissatisfied
d) Uncertain
6) Does performance appraisal affect the working efficiency of employee?
a) Yes
b) No
7) Whether the appraisal system is able to develop high result
a) Yes
b) No
8) Do you think that the system wills also contribution in potential appraisal?
a) Yes
b) No
c) Can’t say
9) Promotion process in the organization is based on-
a) Performance
b) Experience
c) Both
10) Do you think that the present performance appraisal system is transparent & free bias?
a) Yes
b) No
11) Are you satisfied with the current performance appraisal system?
a) Highly satisfied
b) Satisfied
c) Just satisfied
d) Dissatisfied
Give your suggestion for the performance appraisal system in
BSNL Jalandhar .
………………………………………………………………………
………………………………………………………………………

70. 70