PROJECT REPORT ON PERFORMANCE APPRAISAL AT BSNL

ACKNOWLEDGEMENT

We take this opportunity to express our profound sense of gratitude and respect to all those who helped us throughout the duration of this project. Firstly, We are extremely grateful to our college, INDIAN INSTITUTE OF PLANNING AND MANAGENT, for providing us the excellent working environment to undergo our project. We devote our success in this effort to our internship guide Ms. SHILPI SAXENA. For giving us the opportunity to undertake the project and providing crucial feedbacks that influenced us and provided opportunity to undertake the internship work in the esteemed concern. Last, but not the least, we would like to extend our profound thanks to all our esteemed colleagues at college level respectively who helped us in the specific areas of this project. These are the words of relatively spoken and the above mentioned share credit of our present achievement as well as in future. ASHISH KUMAR YADAV

Executive summary

Most of developed and renowned companies of the world manage their employee records, their operations that they performed on their jobs. Companies also make an effort to build in employee relationship by providing employee benefits in different ways so that employee feels good for the company. Ours is an effort to estimate how ill employees at BSNL are satisfied with PMS and are they clear with the objectives and goals which are expected from them. The aim is to make aware each employee that what is expected from them, and aligning their individual goals with the organizational goals. So that employees are happy and contented and fulfilling their desires and needs at work. Many measures purport that Performance Management System is a factor in employee motivation, employee goal achievement, and positive employee morale in the workplace. PMS, while generally a positive in your organization, can also be a downer if mediocre employees stay because they are satisfied with your work environment. Many of the employees are not able to understand that what is required from them or their goals in order to overcome this problem and make performance appraisal transparent and to cater that employees understand the present appraisal. BSNL organized a Pre-PMS Dialogue. This conversation was betien employee and the appraiser. The main aim of this dialogue is to make employee understand the goals that he is required to fill in the goal sheet and clear doubts that employee has regarding the performance appraisal. PMS can be generally classified in to two broad categories 1. OPMS:-Organizational Performance management System and 2. IPMS:-Individual Performance Management System. IPMS can achieved through measuring KRAs (Key Responsibility Area and KPIs (Key Performance Indices). Most of the employees are not aware of the KRAs and KPIs the effort of Pre-PMS Dialogue is erase all the confusions that individual has regarding their KRA and KPI and align their individual goals with organizational goals to achieve competitive advantage. Also to search for hidden opportunities that are not taken into account and find suitable training required for the employees.

TYPE AVAILABILITY OWNER KEY PEOPLE FOUNDED WEBSITE

COMMUNICATION SERVICE PROVIDER COUNTRYWIDE EXCEPT DELHI & MUMBAI GOVERNMENT OF INDIA R.K. (Chairman & MD) 19TH CENTURY, INCORPRATED IN 2000 WWW.BSNL.IN

OVERVIEW OF THE BSNL:

Bharat 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).

OVER VIEWS OF ORGANISATION

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 unionised. 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 liberalisation 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 corporatisation of DoT. The corporatisation 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 corporatisation 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 organisation less efficient than had it been a seamless national organisation. Vinod Vaish, then Chairman of the Telecom Commission made a very bold decision to promote younger talent from within the organisation 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 unionised 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 (DataOne) targeted at homes and small businesses. At present BSNL enjoy's around 60% of market share of ISP services.

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 ADSLBroadband 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.

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

2007 was declared as "Year of Broadband" in India and BSNL announced plans for providing 5 million broadband connectivity by the end of 2007. BSNL upgraded Dataone connections for a speed of up to 2 Mbit/s without any extra cost. This 2 Mbit/s broadband service was provided by BSNL at a cost of just US$ 11.7 per month (as of 21 July 2008 and at a limit of 2.5GB monthly limit with 0200-0800 hrs as no charge period). Further, BSNL is rolling out new broadband services such as triple play. BSNL planned to increase its customer base to 108 million customers by 2010. With the frantic activity in the communication sector in India, the target appears achievable. BSNL is a 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. On 20 March 2009 BSNL advertised the launch of BlackBerry services across its Telecom circles in India. The corporation has also launched 3G services in select cities across the country. Presently, BSNL and MTNL are the only players to provide 3G services, as the Government of India has completed auction of 3G services for private players. BSNL shall get 3G bandwidth at lowest bidder prices of Rs 18,500 crore, which includes Rs 10,186 crore for 3G and Rs 8313crore for BWA.[ As of December 2011, many other private operators have started rolling out their 3rd Generation(aka 3G) services alongside and are enjoying some success in their campaigns to get market share. While BSNL still maintains it's connectivity standard and expands to many more areas including rural areas with their 3G services. Also the network infrastructure has been upgraded from to provide 3.6 Mbit/s to 7.2 MBits/sec. It is enjoying a slow but somewhat steady success in gaining market share in this regard. The introduction of MNP(Mobile Number Portability) which is an service that lets the consumer change wireless service providers while retaining their actual mobile number, BSNL has seen many customers opting for this service to move away from the services to

other operators. Despite this as the Indian Wireless market grows BSNL still has a loyal base of subscribers and many more subscribers being added to it every day.

During the financial year 2008-2009 (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 OneIndia 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, w.e.f. April 1, 2009. The reduction in ADC may hit the bottomlines 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 customer in March'2009 is planned to be increased to 16.00 million by March 2014. On 13 June 2012, BSNL employees participated called off an earlier planned nationwide strike against discriminatory policies of BSNL management upon promise by Management to resolve the Demands of the protesting unions.

CHALLENGES

During the financial year 2008-2009 (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 OneIndia 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, w.e.f. April 1, 2009. The reduction in ADC may hit the bottomlines 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 customer in March'2009 is planned to be increased to 16.00 million by March 2014. On 13 June 2012, BSNL employees participated called off an earlier planned nationwide strike against discriminatory policies of BSNL management upon promise by Management to resolve the Demands of the protesting unions.

Services

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

Universal Telecom Services: Fixed wireline 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 country. WLL-CDMA Telephone Services: BSNL's WLL (Wireless in Local Loop)service is a service giving both fixed line telephony & Mobile telephony. Internet: BSNL provides Internet access services through dial-up connection (as Sanchar net through 2009) as Prepaid, (Net One) as Postpaid and ADSL broadband (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 2009. Helpdesk: BSNL's Helpdesk (Helpdesk) provide help desk support to their customers for their services.

VVoIP: BSNL, along with Sai Info system - an Information and Communication Technologies (ICTs) provider - has launched Voice and Video Over Internet Protocol (VVoIP). This will allow to make audio as well as video calls to any landline, mobile, or

IP phone anywhere in the world, provided that the requisite video phone equipment is available at both ends.

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

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

Products

 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 _ 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

PRFORMANCE APPRAISAL SYSTEM AT BSNL

INTRODUCTION TO THE TOPIC

Human 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 is a clich, which no member of any senior management team would disagree with. Yet, the reality for many organizations are 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.

PREFACE
Managing human resources in todays dynamic environment is becoming more and more complex as well as important. Recognition of people as a valuable resource in the organization has led to increases trends in employee maintenance, job security, etc My research project deals with Performance Appraisal as carried out at Bhart Sanchar Nigam Ltd. (BSNLK). In this report, I have studied &evaluated the performance appraisal process as it is carried out in the company. The first section of my report deals with a detailed company profile. It includes the companys history: its activities and operations, organizational structure, etc. this section attempts to give detailed information about the company and the nature of its functioning. The second section deals with performance appraisal. In this section, I have given a brief conceptual explanation to performance appraisal. It contains the definition, process and significance of performance appraisal. In the third section of my report, I have conducted a research study to evaluate the process of performance appraisal at Bharat Sanchar Nigam Ltd.; this section also contains my findings, conclusions, suggestions and feedback. The forth and final section of this report consists of extra information that I related to the main contents of the report. These annexure include some graphs and diagrams relating to the company, graphs relating to the research study and important documents upon which the project is based.

RATIONALE OF THE STUDY

Performance 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, pay increase.

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Human 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 is a clich, which no member of any senior management team would disagree with. Yet, the reality for many organizations are that their people remain under valued, under trained and under utilized. The market place for talented, skilled people is competitive and expensive. Taking on new staff can be disruptive to existing employees. Also, it takes time to develop cultural awareness, product / process / organization knowledge and experience for new staff members.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Following are the various functions of Human Resource Management that are essential for the effective functioning of the organization: 1. Recruitment 2. Selection 3. Induction 4. Performance Appraisal 5. Training & Development

RECRUITMENT
The process of recruitment begins after manpower requirements are determined in terms of quality through job analysis and quantity through forecasting and planning.

SELECTION
The selection is the process of ascertaining whether or not candidates possess the requisite qualifications, training and experience required.

INDUCTION
a) Induction is the technique by which a new employee is rehabilitated into the changed surroundings and introduced to the practices, policies and purposes of the organization.

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. According to Flippo, Performance Appraisal is the systematic, periodic and an important rating of an employees excellence in matters pertaining to his present job and his potential for a better job.

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.

PROCESS
The 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

LIMITATIONS
1. Errors in Rating 2. Lack of reliability 3. Negative approach 4. Multiple objectives

5. Lack of knowledge

METHODS OF PERFORMANCE APPRAISAL

The foregoing list of major program pitfalls represents a formidable challenge, even considering the available battery of appraisal techniques. But attempting to avoid these pitfalls by doing away with appraisals themselves is like trying to solve the problems of life by committing suicide. The more logical task is to identify those appraisal practices that are (a) most likely to achieve a particular objective and (b) least vulnerable to the obstacles already discussed. Before relating the specific techniques to the goals of performance appraisal stated at the outset of the article, I shall briefly review each, taking them more or less in an order of increasing complexity. The best-known techniques will be treated most briefly.

ESSAY APPRAISAL
In 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 SCALE

This 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 REVIEW
The 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 RATING
Like 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 OBJECTIVES
To 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 METHODS
For 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 CENTERS
So 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 so 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 FEEDBACK

Many 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."

ADVANTAGES
Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job performance. Employees are judged according to real outcomes, and not on their potential for success, or on someone's subjective opinion of their abilities. The guiding principle of the MBO approach is that direct results can be observed easily. The MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied elements that go to make up employee performance. MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts, but to put all the parts together and the performance may be directly observed and measured.

DISADVANTAGES
This approach can lead to unrealistic expectations about what can and cannot be reasonably accomplished. Supervisors and subordinates must have very good "reality checking" skills to use MBO appraisal methods. They will need these skills during the initial stage of objective setting, and for the purposes of self-auditing and self-monitoring. Variable objectives may cause employee confusion. It is also possible that fluid objectives may be distorted to disguise or justify failures in performance.

Benefits of Performance Appraisals

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.

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.

ROLES IN THE PERFORMANCE APPRAISAL PROCESS

a) Reporting Manager Provide feedback to the reviewer / HOD on the employees behavioral traits indicated in the PMS Policy Manual Ensures that employee is aware of the normalization / performance appraisal process Address employee concerns / queries on performance rating, in consultation with the reviewer b) Reviewer (Reporting Managers Reporting Manager) Discuss with the reporting managers on the behavioral traits of all the employees for whom he / she is the reviewer Where required, independently assess employees for the said behavioral traits; such assessments might require collecting data directly from other relevant employees c) HOD (In some cases, a reviewer may not be a HOD) Presents the proposed Performance Rating for every employee of his / her function to the Normalization committee. d) HR Head Secretary to the normalization committee Assists HODs / Reporting Managers in communicating the performance rating of all the employees HOD also plays the role of a normalization committee member Owns the performance rating of every employee in the department

e) Normalization Committee Decides on the final bell curve for each function in the respective Business Unit / Circle Reviews the performance ratings proposed by the HODs, specifically on the upward / downward shift in ratings, to ensure an unbiased relative ranking of employees on overall performance, and thus finalize the performance rating of each employee

KEY CONCEPTS IN PMS

In order to understand the Performance Management System at BHARTI, 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. o o o o What are the guidelines for setting the KRAs for an employee? How does an employee write down his KRAs for a particular financial year? KRAs: The Four Perspectives. 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 2010 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 four different types of rating that an employee can achieve i.e. EC, SC, C and PC. 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 PROCESS

EXCEPTIONAL CONTRIBUTOR (EC)

SIGNIFICANT CONTRIBUTOR (SC)

Performs consistently and substantially above expectations in all areas

Performs above expectations in all areas Achieves final score between 100-114%

Achieves a final score greater than or equal to 115% Versatile in his/ her area of operation Develops creative solutions and require little / minimal supervision anticipates problems, by other 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

Consistently delivers on stretch targets Is proactive Spots and

implements solutions Sees and exploits opportunities Delivers ahead of time Sees the wider picture-impacts across business Focuses on whats good for the business Seen as role model by others Recognized as exceptional

functions as well Motivates others to solve problems Develops others Provides open and honest feedback

Able to establish and lead cross-functional teams

OBJECTIVES OF THE STUDY

To carry out the study of BSNL, we framed the following objectives 1. Identification of the technique of performance appraisal followed in BSNL. 2. Employee attitude towards the present appraisal system. 3. Review of the current appraisal system in order to i. ii. Enhance productivity Attain global standards

4. To provide suggestions & recommendations from the study conducted.

RESEARCH METHODOLOGY

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

METHODOLOGY
Every project work is based on certain methodology, which is a way to systematically solve the problem or attain its objectives. It is a very important guideline and lead to completion of any project work through observation, data collection and data analysis. Research Methodology comprises of defining & redefining problems, collecting, organizing & evaluating data, making deductions & researching to conclusions. (According to Clifford Woody)

RESEARCH DESIGN:
Research Design refers to "framework or plan for a study that guides the collection and analysis of data". A typical research design of a company basically tries to resolve the following issues: a) Determining Data Collection Design b) Determining Data Methods c) Determining Data Sources d) Determining Primary Data Collection Methods e) Developing Questionnaires f) Determining Sampling Plan

(1) EXPLORATIVE 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 Lucknow, Utter Pradesh

DATA COLLECTION
Data Sources:
i. ii. Secondary Data through Internet Primary Data through Questionnaire

FINDINGS AND ANALYSIS

1. Employees

Opinion

as

to

the

Purpose

of

Performance

Appraisal

Performance standards / yardsticks

Options Yes No

Response (%) 84 16

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

Options Yes No

Response (%) 72 28

3. Number of Employees being appraised during their service period Options Yes No Response (%) 68 32

4. Employees opinion as to the present appraisal system

Options Fully Satisfied Satisfied Cant Say Dissatisfied

Responses (in %) 2 24 44 30

5. Employee perception as to the frequency of appraisal Options Once During The Service Period Continuous Never Cant Say Response (in %) 2 92 0 6

6. If continuous appraisal what should be the gap between two appraisal period Options Quarterly Half Yearly Yearly Response (in %) 20 44 36

7. How Performance Appraisal affects the productivity of the employees

Motivated + Feedback 38 - Feedback 12

Indifferent

Demotivated

12

10

28

Neutral

24

21

8. Who should do the appraisal? Options Superior Peer Subordinate Self Appraisal Consultant All of the above Superior + Peer Response ( in % ) 24 0 0 8 4 48 16

9. Does appraisal help in polishing skills and performance area?

Options Yes No Somewhat

Response ( in % ) 74 10 16

If the process of appraisal does not lead to the improvement of the skills and proficiency of the employees, the very 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 employee?

Options Yes No

Response ( in % ) 82 18

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 % respondended 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. If given a chance, would employees like to review the current appraisal Technique ? Response ( in % ) Options Yes No Cant Say 72 4 24

12. Appropriate method of conducting the performance appraisal

Options Ranking Method Paired Comparison Critical Incidents MBO Assessment Centre 360 degree

Response ( in % ) 12 0 20 58 4 6

13. Does performance appraisal leads to identification of hidden potential Options Yes No Response ( in % ) 96 4

LIMITATIONS OF THE STUDY

A few limitations and constraints came in way of conducting the present study, under which the researcher had to work are as follows: Although all attempts were made to make this an objective study, biases on the part of respondents might have resulted in some subjectivity. 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. This being the maiden experience of the researcher of conducting study such as this, the possibility of better results, using deeper statistical techniques in analyzing and interpreting data may not be ruled out.

SUGGESTIONS AND CONCLUSION

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. 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.

ANNEXER
QUESTIONNAIRE FOR PERFOMANCE APRASIAL
1. Employees Opinion as to the Purpose of Performance Appraisal standards / yardsticks Yes No

2. Awareness of technique of Performance Appraisal being followed at BSNL among Employees. Yes No

3. Number of Employees being appraised during their service period. Yes NO

4. Employees opinion as to the present appraisal system Fully Satisfied Satisfied Cant Say Dissatisfied

5. Employee perception as to the frequency of appraisal Once During the Service Period Continuous Never Cant Say

6. If continuous appraisal what should be the gap between two appraisal period Quarterly Half Yearly Yearly

7. How Performance Appraisal affects the productivity of the employees Motivated 8. Who should do the appraisal? Superior All of the above Peer Subordinate Superior + Peer Self Appraisal Consultant Indifferent Demotivated

9. Does appraisal help in polishing skills and performance area? Yes No Somewhat

10. Does personal bias creeps-in while appraising an employee? Yes No

11. If given a chance, would employees like to review the current appraisal Technique ? Yes No Cant Say

12. Appropriate method of conducting the performance appraisal Ranking Method MBO Paired Comparison Assessment Centre Critical Incidents 360 degree

13. Does performance appraisal leads to identification of hidden potential Yes No

BIBLOGRAPHY
www.google.com www.wikipedia.com www.bsnl.com www.sribe.com