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Serial no. Chapters Page No.

Executive summary 1-3

I. Performance appraisal – An 5-25


II. Company’s Profile. 26-41

III. Organization’s Chart. 42-43

IV. Performance appraisal at AIRTEL. 44-47

V. Objectives of the study. 48-49

VI. Research methodology. 50-52

VII. Analysis and Interpretation of the 53-61


VIII. Findings of the study. 62-63

IX. Recommendations. 64-66

X. Limitations. 67-68

XI. Conclusion 69-70

XII. Appendix. 71-73

XIII. Bibliography. 74-75


Performance appraisal is one of the traditional and most universal practices of the
management. It is a systematic and objective way of judging the relatives worth or
ability of an employee in performing his task. Modern management refers to an
appraisal system in which the employee’s merit like initiative, dependability,
personality etc. are compared with others and ranked and rated. The trend now a
day is in the direction of attempting to measure what the man does (performance
appraisal) rather than what he is (merit rating). Employees also wish to know their
position in the organization. Performance appraisal helps to identify those who are
performing their assigned tasks well and those who are not and the reason for such
performance. Appraisals are judgments of characteristics, traits and performance of
others on the basis of which we assess the worth or value of others and identify
what is good and bad.

According to Flippo, “performance appraisal is the systematic, periodic and an

impartial rating of an employee’s excellence in matters pertaining to his present job
and his potential for a better job.”

A performance appraisal is an important tool for measuring managerial efficiency,

organizational effectiveness, monitoring and measuring the performance of

“Performance appraisal is the process of evaluating the performance and

qualifications of the employees in terms of the requirements of the job for which he
is employed, for purposes of administration including placement, selection for
promotions, providing financial rewards and other actions which require differential
treatment among the members of a group as distinguished from action affecting all
members equally”.

It is a systematic evaluation of the individuals with respect to his or her performance

on the job and his or her potential for development.

In a nutshell we can say that performance appraisal is a process by which individual

employee’s behavior and accomplishments for a fixed time period are evaluated.


Appraisals serve to monitor the effort of individuals to integrate and coordinate

individual’s effort into a cooperative endeavor and give feedback to the individual to
provide a means of correcting or commanding the efforts of individuals and to provide
an equitable and consistent basis of distributing rewards and penalties. It mainly
concerns itself with the following three purposes: -


It can serve as a basis for job change or promotion.


By identifying the strengths and weakness of an employee it serves as a

guide for formulating a suitable training and development programme to
improve his quality of performance in his present work. It serves as a
feedback to the employee. By letting the employee know how well he is
doing or where he stands with his supervisors it tells him what he can do
to improve his present performance and go up in the management


This involves generation of manpower information.


Performance appraisal is a significant element of the information and control system

in the organization. Some common applications of performance appraisal are given

Performance appraisal provides valuable information for personnel

decisions such as pay increases, promotions, demotions, transfers and

It helps to judge the effectiveness of recruitment, selection, placement

and orientation systems of the organization.
It is useful in analyzing training and development needs.

It can be used to improve performance through appropriate feedback,

working and counseling employees.

Performance appraisal facilitates human resources planning, career

planning and succession planning.

It promotes a positive work environment, which contributes to

A competitive spirit is created and employees are motivated to improve
their performance.

Systematic appraisal of performance helps to develop confidence among



This process of performance appraisal has many stages and involves multiple
activities to be undertaken by an organization. These are usually format
determination, sharing evaluation, designing organizational inputs and reward
administration. The various approaches for appraisal are-

1) Intuitive approach- where the boss judges the employee based on

his perception of the employee behavior.

2) The self-appraisal approach- where the employee himself evaluates his


3) Group approach- where he is evaluated by a group of persons.

4) The conventional trait approach- where the boss evaluates the

conventional employee on the basis of presence or absence of certain
traits likes integrity, honesty, dependability etc.

5) On achieved results- where the targets are preset jointly by the rater and
rates in a restricted sense.
There are number of performance criteria which may be used to measure the
proficiency of an employee. It can be classified into two main categories:


Amount and quality of production, work sample tests, length of service, amount of
training necessary, absenteeism, accidents etc. are all objectives criteria.

Rating of employee’s job proficiency by their superior, peers and subordinates, extent
of upward communication of ideas, degree of knowledge about corporate goal,
contribution to socio cultural values is all examples of subjective criteria.


1. Mutual trust
2. Clear objectives
3. Standardization
4. Training
5. Job relatedness
6. Documentation
7. Feedback and participation
8. Individual differences
9. Post appraisal interview
10. Review and appeal

Many form of rating are presently available each naming its strong points as well as
limitations. They may be classified into two broad categories



1. Confidential report 1. Assessment center

2. Free form or essay 2. HR accounting
3. Straight ranking 3. Behaviorally anchored
rating scales
4. Paired distribution 4. MBO appraisal
5. Forced distribution 5. 360-degree appraisal
6. Graphic rating scales
7. Checklist method
8. Critical incidents
9. Group appraisal
10. Field review

1) Rating method-
The oldest and simplest method of performance appraisal is to compare one man
with all other men and place in a simple rank order. In this way ordering is done
from best to worst of all individuals comprising the group. This method takes into
account rating by more than one another rater. The ranks assigned are then
averaged and relative is determined for each member.

This method has two advantages of simplicity and naturalistic or naturalness. But
it has disadvantages of being subjective and the ranking becomes difficult when
there are even twenty or thirty cases. Also, the magnitude of the difference in
ability between ranks is not equal at different positions.
As an answer to the last problem the paired comparison technique of ranking has
been evolved. In this method the rater compares each man in his group with
every other man with the final ranking of each worker determined by the number
of time he was judged better than others.

1) Rating scale method-

This method provides a kind of scale for measuring absolute differences between
individuals. This is method is of two types-

I) Discrete- the characteristic ‘job knowledge’ may be divided into five

categories on a discrete scale “exceptionally good”, “above
average”, “average”, “below average” and “poor”. The rater can tick
mark category, which describes best he person being rated.
II) Continuous or graphic- where just above the category notation an
interrupted line is provided. The rater can tick at any point along its

There are four kinds of standards used in rating scales, namely

numerical or alphabetical, descriptive adjective, man-to-man and
behavior sample. In man-to-man rating scale the standards are very
concrete because these are neither numbers nor alphabets (which
do not convey same meaning to all) nor descriptive adjective but are
persons, of varying ability whom the rater has selected and ranked
in the ability under consideration.

Thus, a scale of men is created for each trait. The objective to

this scale is that its construction involves difficult and laborious
procedure. Persons used as standards by different raters are

In behavior sample standards, a series of actual description of behavior are

employed which is supposed to indicate varying amounts of the characteristic
being rated. The use of actual descriptions of behavior reduces some of the
differences in interpretation usually found among different raters.

Frequently there is a tendency for the rater to pile up the ratings

either at the middle or at the highest end of the scale. To meet this
the “forced distribution system” is used where the rater is instructed
about the percentage of cases, which should fall in each category.
For example, job knowledge the following percentage must be used:

poor-10%, below average-20%, average-40%, above average-20%

and exceptionally good-10%.
2) Checklist method-

This consists of a list consisting of a number of statements about the worker and
his behavior. Each statement on this list is assigned a value, which are derived
from preliminary research in which the pooled judgments of person familiar with
the job are used. The rater is asked to place a plus sign or a question mark in
front of each statement depending on whether he feels the description applies,
does not apply or there is doubt. The method has the advantages of requiring only
a report of facts from the rater. Final rating is average of the scale value of the
statement, which the superior had checked.

Since the value assigned to different statements do not appear on the list the rater
does not know how highly he has rated a given individual. He also does not have
to distinguish among various categories for each of the several traits considered
for each the several employees working under him. The rater is more precise and
less ambiguous in his expression of the worthiness of the individual. The extent of
constant and halo error is also minimized.

3) Forced choice method-

The forced choice rating form contains a series of groups or statements. The rater
checks how effectively the statements describe each individual being evaluated.
Each statement carries weight, which is not indicated to the rater. There are a
number of variations. Sometimes all the statements may be either favorable or
unfavorable. In another, from four statements two positive and two negative the
rater picks the most appropriate and the most inappropriate respectively. It makes
the performance evaluation more objective.

4) Critical incident technique-

It involves three steps. A list of noteworthy (good or bad) on the job behavior,
usually of specific instances is first prepared which are vital for success or failure
on job. A group of experts then assigns scale values to them, depending upon the
degree of desirability for the job.

The third step is constructing a checklist that includes incidents, which define
‘good’ and ‘bad’ workers. This method helps to identify key areas in which
employees are weak or strong. It emphasizes rating on the subjective evaluation
of traits. Finally, the supervisor finds counseling easier since he knows his
subordinate’s weakness.

5) Confidential report-

This is a traditional form of appraisal used in most government organizations. A

confidential report is a report prepared by the employee’s immediate superior. It
covers the strengths and weaknesses, main achievements and failure, personality
and behavior of the employees. But it involves a lot of subjectivity because
appraisal is based on impressions rather than on data.

6) Free form or essay method-

Under this method, the evaluator writes a short essay on the employee’s
performance on the basis of overall impression. The description is expected to be
as factual and concrete as possible. An essay can provide a good deal of
information about the employee especially if the evaluator is asked to give
examples of each one of his judgments.

7) Straight ranking method-

In this technique, the evaluator assigns relative ranks to all the employees in the
same work unit doing the same job. Employees are ranked from the best to the
poorest on the basis of overall performance. The ‘whole man is compared with the
whole man’ without analyzing performance. The relative position of an employee
is reflected in his numerical rank.

8) Paired comparison method-

This is a modified form of man to man ranking. Herein, each employee is

compared with all the others in pairs one at a time. The number of times an
employee is judged better than the other determines his rank. Comparison is
made on the basis of overall performance. The number of comparisons to be
decided on the basis of the following formula-
9) Group appraisal method-

Under this method, a group of evaluators assesses employees. This group

consists of the immediate superior of the employee, other supervisors having close
contact with the employee’s work, head of the department and a personnel expert.
The group determines the standards of performance for the job, measures actual
performance of an employee, analyses the cause of poor performance and other
suggestions for improvement in future.

10) Field review method-

In this method, a training officer from the HR department interviews line

supervisors to evaluate their respective subordinates. The interviewer prepares in
advance the questions to be asked. By answering these questions, a supervisor
gives his opinion about the level of performance of his subordinate, the
subordinate’s work progress, his strengths and weakness, promotion potential,
etc. The evaluator takes detailed notes of the answer, which are then approved by
the concerned supervisor. These are then placed in the employee’s personal
service file.

1) Assessment centers-

An assessment center is a group of employees drawn from the different work units.
These employees work together on an assignment similar to the one they would be
handling when promoted. Evaluators observe and rank the performance of all the
participants. Experienced managers with proven ability serve as evaluators. This
group evaluates all employees both individually and collectively by using simulation
techniques like role playing, business games and in basket exercises. Employees are
evaluated on job related characteristics considered important for job success.

2) Human resources accounting method-

HR is a valuable asset of the organization. This asset can be valued in terms of

money. When component and well-trained employees leave an organization, the
human asset is decreased and vice versa. Under this method, performance is judged
in terms of cost and contribution of employees. Costs of HR consist of expenditure on
HR planning, recruitment, selection, induction, training, compensation, etc.
contribution of HR is the money value of labor productivity or value added by HR.
difference between cost and contribution will reflect the performance of employees.
3) Behaviorally anchored rating scales (BARS)-

This method combines graphic rating scales with critical incidents method. BARS are
description of various degrees of behavior relating to specific performance
dimensions. Critical areas of job performance and the most effective behavior for
getting results are determined in advance. The rater records the observable job
behavior of an employee and compares these observations with BARS. In this way,
an employee’s actual job behavior is judged against the desired behavior. The steps
involved in constructing BARS are as follows-

a) Identify critical incidents

b) Select performance dimensions
c) R e t r a n s l a t e the incidents
d) Assign scales to incidents
e) Develop final instrument

4) Appraisal by results or MBO-

The concept of management by objective (MBO) was developed by Peter Drucker in

1954. He called it ‘management by objective and self-control’. Since then MBO has
become an effective and operational technique of performance appraisal and a
powerful philosophy of managing. It is also known as work planning and review or
goal setting approach to appraisal.

MBO has been defined as “a process whereby the superior and subordinate
managers of an organization jointly identify its common goals, define each
individual’s major areas of responsibility in terms of results expected of him and use
these measures as guides for operating the unit and assessing the contributions of
each of its members”
The main steps involved in performance appraisal through MBO are as follows-

a) Set organizational goals

b) Defining performance targets
c) P e r f o r m a n c e reviews
d) Feedback

MBO is superior to other methods of performance appraisal. It offers the following


o Ends-means chain
o Role clarity
o Objective appraisal
o Motivation and commitment
o Management development
o Coordination

MBO suffers from the following drawbacks:

o Difficulty in goal setting

o Problem of participation
o Lack of understanding
o Time consuming and expensive
o Inflexibility

5) The 360-degree appraisal technique -

Performance appraisal has come to occupy a pivotal place in human resource

function. The traditional merit rating which focused on personality traits was replaced
by performance appraisal with focus on work results. The concept of M30
transformed it into a participative process. This led ultimately to the introduction of
360-degree feedback system in the United States.
360-degree system involves evaluation of a manager by everyone above, alongside
and below him. Structured questionnaires are used to collect responses about a
manager from his bosses, peers and subordinates. Several parameters relating to
performance and behavior are used in questionnaires. Each manager is judged by a
minimum of fifteen colleagues, at least two of them being his bosses, four of them
peer, and six of them subordinates. The responses are presented collectively to the
assesses in the form of charts and graphs. Comments and interpretations are
presented later. Counseling sessions are arranged to solve the weaknesses identified
in the 360-degree assessment. The 360-degree assessment program is effective
when used from the top down. The fact that the manager at the top has also been
administered the test convinces and they willing to go through it as well.






The main problems involved in performance appraisal are as follows:

1) Errors in rating-
Performance appraisal may not be valid indicator of performance and potential of
employees due to the following types of errors:
a) Halo effect- it is the tendency to rate an employee consistently high or low
on the basis of overall impression. One trait of the employee influences the
rater’s appraisal on all other traits.

b) Stereotyping- this implies forming a mental picture of a person on the basis

of his sex, age, caste or religion.

c) Central tendency- it means assigning average rating to all the employees

in order to avoid commitment or involvement. This is adopted because the
rater has not to justify or clarify the average ratings.

d) Constant error- some evaluators tend to be lenient while others are strict in
assessing performance. In first case, performance is overrated while in
second case it is underrated.

e) Personal bias- performance appraisal may become invalid because the

rater dislikes the employee. Such bias may arise on the basis of regional or
religious beliefs and habits or interpersonal conflicts.

f) Spillover effect- this arises when past performance affects assessment of

present performance.

2) Lack of reliability-
Reliability implies stability and consistency in the measurement. Lack of consistency
over time and among different raters may reduce the reliability of performance

3) Incompetence-

Raters may fail to evaluate performance accurately due to lack of knowledge and
experience. Post appraisal interview is often handled ineffectively.
4) Negative approach-
Performance appraisal loses most of its value when the focus of management is on
punishment rather than on development of employees.

5) Multiple objective-
Raters may get confused due to too many objectives or unclear objectives of
performance appraisal.

6) Resistance-
Trade unions may resist performance appraisal on the ground that it involves
discrimination among its members.

7) Lack of knowledge-
The staff appraising performance of employees might not be trained and experienced
enough to make correct appraisal.

8) Hypercritical or ‘Horns’ effect-

It is the tendency of the superior to rate people lower than their performance justify.

Other problems of Performance Appraisal reported by various studies are:-

1) Relationship between appraisal rates and performance after promotions was not
2) Absence of inter-rater reliability.
3) The situation was unpleasant in feedback interview.
4) Most part of the appraisal is based on subjectivity.

Appraisal of managers is very important. But it is more difficult because it cannot be

measured in quantitative terms. Managerial appraisal should measure therefore, both
performance in accomplishing goals and performance as a manager.

1) Performance in accomplishing goals-

A manager is responsible for achieving the targets of his work unit. The extent to
which these targets are achieved is a good criterion for evaluation.

2) Performance as managers-
Although an impressive record of setting and accomplishing goals is an indicator of a
manager’s performance, this standard cannot be used in all cases. Managers
achieve organizational goals by performing the basic managerial functions.
Therefore, a manager can be appraised on the basis of how well he understands and
undertakes these functions of planning, organizing, staffing, directing and controlling.
Each of these functions involves a series of activities. These activities can be taken
as standards of performance. A five-degree rating scale can be used to rate the
performance of managers. Weights to the scale can be assigned for those activities,
which are clear and adequately known.
As of June 30, 2004, approximately 92% of India's total mobile subscriber market

resided in the Company's sixteen mobile circles, which collectively covered only 56%

of India's land mass.


A proper distribution system is very important for every company because nowadays
the customer wants full service without any pain. Airtel has a deep penetration in the
market of prepaid cards, coupons, easy recharge and postpaid cards. I also seen in
the market the happy faces of customers and retailers of Airtel because of the easy
availability of Airtel cards and coupons.


1. Easy availability
2. Satisfied customers
3. Competitive advantage
4. Better market reputation
5. Saves time


1. Organization (C&FA's)
2. Distributor
3. Retailer
4. Customer

HR Mission Statement

“To lead the organization in enhancing its human capital and creating a
winning environment where everyone enjoys contributing to the best of one’s

Airtel will achieve this by:

Inspiring and motivating its people.

Developing its people to strive for higher standards.
Driving an open minded and enterprising corporate culture where people
through leadership at all levels dare to dream, dare to try, dare to fail and
dare to succeed.
Attracting and recruiting the best talent

Airtel has a very defined and well-structured department and its various policies of
keeping each employee productive part of the organization are intoned with the
corporate world’s requirement.

Employees in the company are largely committed to their organization and have shown
progress in the company. Employees are satisfied with the HR department of Airtel
GSM Company.

Humans are the basic tool for having competitive edge in the market for most of the
organizations and Airtel is one of these. Airtel has one of the best HR systems in
India that gives it an edge over its competitors.

HR department of Airtel has three sections.

Employee services

o Payroll information
o Leave and medical record
o Final settlements and provident fund
o Policies and procedures
o Employees record and recreation

OD and Effectiveness

o Training plan
o Talent management
o Performance management
o Employees retention
o Orientation employee communication

Staffing and compensation

o Staffing plan and HR budgeting

o Management trainee and internship program
o Interviewing and selection
o Compensation, benefits and incentive
Performance Review:
At AIRTEL a review is intended to be an open and frank discussion between an
employee and their Team Leader/Manager. Generally, there are two elements: first is
the element in which discussion takes place over the strengths and areas which need
to be developed as displayed by the job holder over the past 2 months. The
performance is of course judged comparing the performance against the core
indicators of Job. The second element is concerned with discussing the training
needs/inputs activities that are considered to be appropriate to help the jobholder
overcome some of development areas discussed in the review and also those activities
that are deemed appropriate to build upon their current strengths.

Appraisal categories
% Of total numbers of
Appraisal category Definition of category employees which can
be rated in this
Indicates exceptional 15% performance
2.very Good Indicate performance 10%
that consistently meets
the requirements of the
position,” very good”
indicates the individual
is on track for
3. Good Indicated performance 8%
that requires
improvement (i.e. meet
requirements without
initiative or
4. Basic Performance to be 5%
improved (hardly
meets requirements)

Sources of Performance Appraisal:

At AIRTEL the primary sources of performance appraisal are the managers and
secondary sources are employees themselves. Though the peers also give their
opinion but it usually does not have any weightage unless a conflict arises between the
manager and the employee.


Workers at AIRTEL are informed of their performance and given the opportunity to
express their opinion over their own level of performance against each competence.
This serves the following two main purposes:
It enables the reviewer to redefine whether the initial assessment was correct, as
circumstances may exist that the reviewer is unaware of.
By asking the worker what he sees to be his own strengths and development
areas often help to reduce negative responses and makes planning training
needs/inputs activities easier if the person is able to express for himself the areas
in which he feels he can improve.


Following is the SWOT Analysis for AIRTEL

Very focused on telecom. Price Competition from BSNL and
Leadership in fast growing cellular MTNL
segment. Untapped Rural market
Pan-India footprint.
The only Indian operator, other
than VSNL, that has an
international submarine cable.

The fast-expanding IPLC market. Competition from other cellular and

Latest technology and low-cost mobile operators.
advantage. Saturation point in Basic telephone
Huge market. service


VERY FOCUSED ON TELECOM Bharti Airtel is largely focused on the

telecom, around 93% of the total revenue comes from telecom (Total telecom
revenue Rs 3,326).


leadership position in cellular market. Bharti Airtel is one of India's leading
private sector providers of t e l e c o m m u n i c a t i o n s services based
on an aggregate o f 27,239,757 c u s t o m e r s a s o n A u g u s t 3 1 , 2 0 0 6 ,
c o n s i s t i n g of 25,648,686 GSM mobile and 1,591,071 broadband &
telephone customers.

PAN INDIA FOOTPRINT Airtel offers the most expansive roaming network.
Letting you roam anywhere in India with its Pan-India presence, and trot across
the globe with International Roaming spread in over 240 networks. The mobile
services group provides GSM mobile services across India in 23 telecom circles,
while the B&T business group provides broadband & telephone services in 92


INTERNATIONAL SUBMARINE CABLES. Airtel, the monopoly breaker
shattered the Telecom monopoly in the International Long-Distance space with
the launch of International Submarine Cable Network i2i jointly with Singapore
Telecommunications Ltd. in the year 2002. This has brought a huge value to
the IPLC customers, delivering them an option besides the incumbent carrier,
to connect to the outside world.
Price Competition from BSNL and MTNL. Airtel is tough competition from the
operators like BSNL and MTNL as these two operators are offering services at
a low rate.

Untapped Rural market. Although Airtel have strong Presence throughout

the country but still they are far away from the Indian rural part and generally
this part is covered by BSNL so indirectly Airtel is losing revenue from the
rural sector.

THE FAST EXTENDING IPLC MARKET an IPLC (international private
leased circuit) is a point-to-point private line used by an organization to
communicate between offices that are geographically dispersed throughout the
world. An IPLC can be used for Internet access, business data exchange,
video conferencing, and any other form of telecommunication. Airtel Enterprise
Services and SingTel jointly provide IPLCs on the Network i2i. The Landing
Station in Singapore is managed by SingTel and by Airtel in Chennai (India).
Each Landing Station has Power Feeding Equipment, Submarine Line
Terminating Equipment and SDH system to power the cable, add wavelengths
and convert the STM-64 output to STM-1 data streams respectively.


c o s t s o f introducing cellular services for Airtel are marginal in nature, as it
needs only to augment its cellular switch/equipment capacity and increase the
number of base stations. The number of cities, towns and villages it has covered
already works to its advantage as putting more base stations for cellular
coverage in these areas comes with negligible marginal cost. Besides such cost
advantages, it has also other cost advantages for the latest cellular technology.
As a late entrant into the cellular market, it has dual advantage of latest
technology with modern features, unlike other private cellular operators who
started their service more than 4-5 years back and low capital cost due to
advantages of large scale buying of cellular switch/equipment.

HUGE MARKET The cellular telephony market is presently expanding at a

phenomenal / whopping rate every year and there is still vast scope for
Airtel to enter /expand in this market. Besides there is a vast rural segment
where the cellular services have not made much headway and many customers
are looking towards Airtel for providing the service to them. With its wide and
extensive presence even in the remotest areas, Airtel poised to gain a big market
share in this segment when it expands cellular services into the rural areas.

improve/expand its cellular services. Fierce and cut-throat competition is already
in place with the markets ever abuzz with several tariff reductions and
announcement of attractive packages, trying to grab most of the ‘mind share’
of the ‘king’ - ‘the consumer’, whose benefits are increasing with passing of
everyday. If BSNL is not innovative and agile, its cellular service will be a flop.
It needs to be proactive with attractive packaging, pricing and marketing policies
lest its presence in the market be treated with disdain by the private cellular
companies. The launch of WLL services by Reliance Info COMM has aggravated
the situation.


entered in the basic telephony market it’s a biggest there for the company as the
basic telephony market has reached

Appraisal form of AIRTEL is highly comprehensive. There is only one form used
in AIRTEL and the same form is used for all the categories of employees. The
performance appraisal form in AIRTEL applies to promotions, annual increments
and disciplinary actions. On the basis of this form 5% people are promoted and 10%
are given additional benefits.

‘Checklist Method’ does performance appraisal here. This method is less time
consuming and the appraiser can get him acquainted with performance at a
glance. Under it, there is a printed form one for each person to be rated. This form
consists of a number of traits like initiative, job knowledge, ability to learn,
personality etc. Also, the employee contribution like quantity and quality of work,
attitude towards work and fellow employees is also considered. In front of each
factor, a number of boxes are given and the appropriate box is ticked off.
Sometimes for promotion purposes, paired comparison technique is also used.

In the Annual Confidential Report brief bio-data of the employee is incorporated

such as name, position, department, category, pay scale, basic consolidated
salary, date of increment falling due date of expiry of probationary
period/apprentice period/temp. engagement, additional benefits given during last
one year and the attendance record.

Assessment is made mainly on the following points-

1. Quality of work- on the basis of frequency of mistakes and general
accuracy of work produced disregarding amount of work output

2. Quantity of work- on the basis of volume of work, output disregarding

mistakes in their factor.
3. Judgment- on basis of employee’s ability to think clearly and make
logical decisions.

4. Initiative- on the basis of his resourcefulness in handling assignment

without detailed instructions and ability to think on original lines.

5. Ability to learn- this is seen by the speed with which instructions are
grasped and new routines mastered.

6. Job knowledge- this assessment here is made on basis of knowledge for

job requirement gained through education and experience that is to see
whether he is familiar with the job or not.

7. Attitude- on basis of his attitude towards work and fellow employees that
is whether he is cooperative willingly and tries to do a through job.

8. Personality- on the basis of the effect of employee’s personality upon

people contacted that is whether he makes a favorable impression by his
tact or whether he is courteous and friendly in his daily associations.
9. Safety- on the basis of whether the employee is safety conscious or not.
10. Supervision ability- this is applicable for supervisors only. Assessment
is made on the basis of the employee’s ability to organize a group for
maximum efficiency and whether he has an ability to coordinate activities
of the group with other related groups within the organization.

For the unskilled and semi-skilled workers judgment, initiative, personality and
supervision ability are not applicable.
The Annual Confidential Report is filled by the immediate supervisors and is
then reviewed by the departmental head.

Promotion of executives is done on the basis of seniority as well as on

performance and merit. The Vice President (operations) does the final appraisal
of executives.

Existence of performance appraisal system




The whole population under study is aware of the existence of performance appraisal
system within the organization.

Appraisal of employees




100% of the employees within the organization are appraised.



For most of the employees’ performance appraisal takes place annually.



Checklist method is used for performance appraisal is 57%, observation method is

used by 17%, self-appraisal method and others are used in equal proportion i.e.


Majority of the employees are aware of the feedback provided by the superior after
performance appraisal.80% are aware of performance appraisal and 20% are not.

Satisfaction level of employees towards performance appraisal system




Majority of the population under study is satisfied with the performance appraisal
system carried out in the organization 60% are satisfied and 40% are not.

Need of change or improvement in performance appraisal system

44% yes



56% of the employee’s belief that performance appraisal system can still be improved
and 44% employee belief that there is no need of improvement.

Mostly the whole population under study is aware of the performance appraisal
system done in the organization. All the employees are appraised by the head of the
human resource department.

The whole population under study is appraised annually by the head of the human
resource department. That is once in a year the performance appraisal system is
practiced in the organization.

All the employees in the organization are appraised by the checklist method. The
head of the personnel department prepares the checklist form containing questions
which is filled by all the employees.

Majority of the employees under study say that after performance appraisal they are
provided with proper feedback so that they can improve their performance and are
also guided for further betterments.

Most of the employees have found a positive change in their performance after
appraisal and proper feedback. After appraisal if the employees are not found up to
the mark then they are properly guided and trained for improvement.

Most of the employees are fully satisfied with the performance appraisal system done
in the organization but some of them also want some changes as they say that
nothing is perfect and everything can be improved.
Changes which the employees want in the appraisal system are-
The performance appraisal system should take place twice in a year that is
half yearly instead of yearly.
The appraisal system should not be biased.
The immediate head or supervisor of the employee should do the appraisal
and also provide proper feedback.

1) The system can be redesigned in the sense that there should be three
different formats, one each for managers, officers and supervisors, and non-
supervisory personnel instead of the same format for each category.

2) The reliability of a rating system can be obtained by comparing the rating of

two individual for the same person.

3) The rating must be made by the immediate superior. However, a staff

department can assume the responsibility of monitoring the system. Though
the staff department cannot change any rating, it can point out inconsistencies
to the rater such as harshness, leniency, and central tendency and so on.

4) The system should be used as a mechanics to under trained difficulties of

subordinates and providing ways to remove them. The superior should
understand the strength and weaknesses of their subordinates and help them
to realize these. They should help the subordinates to become aware of their
positive contribution. They should also encourage them to accept more
responsibilities and challenges and acquire new capabilities. Finally, the
superior should plan for effective utilization of the talents of subordinates.

5) Provision should be made to identify the training needs of the employees.

6) There should be a system of ‘self-appraisal’ of the employee. Along with the

appraisal form appraised by immediate superior, the employee should also
appraise himself and two forms should together go the personnel department.
If there is a wide disparity in any factor, then it should be analyzed and efforts
should be made to know the possible causes of the occurrence.
7) All the traits should not be treated equally for all individuals. Specific standards
should be fixed for specific groups of employees.
8) There should be a system of performance counseling with the ratee. The
appraisee should unreservedly be told how he has been evaluated, strong and
weak points should be fully discussed with him. Proper feedback regarding his
performance should be given to him as he is interested not only in knowing as
to where he stands but also as to what he can do to go up in the hierarchy.
Appraisee can also discuss his grievance with the appraiser which will help in
maintaining harmonious industrial relation.

9) There should be some criteria for ‘potential appraisal’ which should be

measured in terms of individuals ability to undertake greater responsibilities in
the decision-making process leading to greater decentralization.

10)Appraisal should be done with attention. A casual view to the appraisal should
not be adopted as it is very important for the person being appraised.

Management in the modern times primarily means handling of men because it is

through them that the world moves. Of men, machine, money and material, men are
the most important assets possessed by the organization. They rely on the
appraisal system as a tool for deployment of manpower. But many people get upset
the moment they learn about the time for their performance to be appraised.

Performance appraisal is therefore a very vital tool for personal development and
because of the complex factors involved it has to be handled very delicately. It is a
process of assessing systematically the performance of a person on the job and his
potential for higher levels job in future. It provides an objective basis for taking
personnel decisions. If performance appraisal is not done properly then superiors
will not able to take proper personnel decisions. They will not be able to judge the
effectiveness of recruitment, selection, and placement and orientation
system of the organization.

If performance system is biased then the superior will not able to judge the real
performance of the employees and will not be able to give the proper feedback
and analyze their training and development needs. Systematic appraisal of
employees helps to develop confidence among them.

The performance appraisal system in a reputed organization like Airtel has been
studied with a view to analyze the practical implications of the system and to give
findings regarding the various aspects of the performance appraisal system and
they’re some of the applications. The various suggestions given have been based
on the survey conducted of different appraisers and appraises in the organization.