INTRODUCTION

India operates one of the largest telecom networks in Asia comprising over 21,718 telephone
exchanges, 14.62 million telephone lines, an extensive local and long distance transmission
network with 132,022 route kms of terrestrial microwave radio relay, coaxial cables and about
36,632 km. of optical fiber systems. The voice and non-voice telecom services include data
transmission, facsimile, mobile radio, radio paging and leased line services to cater to a variety
of needs, both residential and business. A dedicated packet switched Public Data Network with
international access for Computer Communication services is also available.The country has
been divided into 20 telecom circles and 4 metro cities for operation of Cellular Mobile Service.
Presently there will be two operators in each circle. 35 licenses have been issued so far and
balance is in the process. The services have commenced in 4 metros viz. New Delhi, Calcutta,
Bombay and Madras with over 70,000 subscribers.

Telephone Regulatory Authority of India (TRAI), Indian Telephone Industries (ITI) and
Hindustan Teleprinters Ltd. (HTL). The telecommunication network including that of MTNL
comprises of more than 25,394 telephone exchanges with capacity of 272.2 lakh’s lines and
226.31 lakh’s working connections as on September 30, 1998. The number of new connections
provided in 1998-99 was 37.9 lakh as against 32.6 lakh in 1997-98.

Performance of Telecommunications Sector

2001 Apr. – Dec. 2002 Apr.- Dec. Per cent

Parameters
(in million) (in million) variation

Basic Telephone
connections (including
WLL) (Nos.) 2.6 1.9 -24.7
Cellular Mobile Phone
(Nos.)

Total 4.5 5.2 17.3

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 B. Tariffs
Telecom Tariff
Order third trench Existing as reported
rates on March 14, to TRAI charge per Per cent
Parameters
2002 charge per minute (Rs. 1.20 per variation
minute (Rs. 1.20 per pulse) (Rs.)
pulse) (Rs.)

NLD Peak Hour Tariffs

(1000 kms and above)
21.60 9.60 -56
ILD Peak Hour Tariffs
(North America)

Source: TRAI.
The telecom operators are fixing their own tariff rates within ceilings given by TRAI and
this position is dynamic in nature

Tele-density International Comparison

Country 1995 2001 Compound average growth rate

(per cent)

Brazil 8.5 21.8 17.0

China 3.3 13.8 26.9

India 1.1* 3.6* 22.3

Indonesia 1.7 3.7 14.0

Pakistan 1.7 2.4 5.8

U.K. 50.2 58.8 2.7

U.S.A. 60.7 66.5 1.5

Sri Lanka 1.1 4.3 25.0

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About The Tata Group

The Tata Group is a multinational conglomerate company headquartered in Mumbai, India. In

terms of market capitalization and revenues, Tata Group is the largest private corporate group in
India and has been recognized as one of the most respected companies in the world. It has
interests in steel, automobiles, information technology, communication, power, tea and
hospitality. The Tata Group has operations in more than 85 countries across six continents and its
companies export products and services to 80 nations. The Tata Group comprises 114 companies
and subsidiaries in seven business sectors, 27 of which are publicly listed. 65.8% of the
ownership of Tata Group is held in charitable trusts.

Companies which form a major part of the group include:

 Tata Steel.
 Corus Steel.
 Tata Motors.
 Tata Consultancy Services.
 Tata Technologies.
 Tata Tea.
 Titan Industries.
 Tata Power.
 Tata Communications.
 Tata Teleservices and
 The Taj Hotels.
The group takes the name of its founder, Jamsedji Tata, a member of whose family has almost
invariably been the chairman of the group. The current chairman of the Tata group is Ratan Tata,
who took over from J. R. D. Tata in 1991 and is currently one of the major international business
figures in the age of globality. The company is currently in its fifth generation of family
stewardship. The 2009 annual survey by the Reputation Institute ranked Tata Group as the 11th
most reputable company in the world. The survey included 600 global companies.

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The Tata logo

The Tata logo was designed by the Wolff Olins consultancy. The logo is meant to signify
fluidity; it may also be seen as a fountain of knowledge; maybe a tree of trust under which
people can take refuge.

Tata communications……taking you further

Type Public (BSE: 500483 NYSE: TCL)

Industry Telecommunications network

Founded 1986

Headquarters Mumbai, Maharashtra, India

Key people Ratan Tata (Chairman)&Narasimhan Srinath (MD)

Revenue ▲ Rs. 11,025.56 Crore (US$ 2.35 billion) (2009-2010)

Profit ▼ Rs. -538.80 Crore (US$ -0.11 billion)

Employees 5,825

Parent Tata Group

4
Tata Communications Limited (formerly Videsh Sanchar Nigam Limited or VSNL) has a hold
on the wholesale voice market in India and beyond. The company, which primarily provides
international long-distance telephone service, owns and operates a network servicing more than
200 countries. It also offers network and data services to enterprises and supplies transmission
backbone and data services to other telecommunications companies over one of the largest
global IP networks. Tata Communications is part of Indian industrial conglomerate Tata Group.

Tata Communications Limited, formerly Videsh Sanchar Nigam Limited, is primarily engaged in
the communications solutions business globally. The Company is a facilities-based provider of a
range of integrated communications services. The Company derives a substantial portion of its
revenue from ... more like this:

 telephone communications no radiotelephone,

 data communication service,
 business communications solutions,
 telecommunications business services,
 computer data communication,
 internet access,
 radio communications,
 telephone communication services,
 related services,
 communications carriers,
 integrated communications services,
 data processing,
 managed data,
 services group,
 communications limited,
 international communications,
 global communications,
 wired communications
 Services market.

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Key numbers for fiscal year ending March, 2009:

Sales: $1,865.1M

One year growth: 9.8%

Net income: $74.5M

The company primarily operates in India. It is headquartered in Mumbai, India and employs
about 5,800 people. The company recorded revenues of INR99, 631.7 million ($2,174 million)
during the financial year ended March 2009 (FY2009), an increase of 20.1% over 2008. The
operating profit of the company was INR2, 473 million ($54 million) in FY2009, compared to
INR951.8 million ($20.8 million) in 2008. Its net profit was INR3, 158 million ($68.9 million) in
FY2009, compared to INR103 million ($2.2 million) in 2008.

Officers:

Chairman: SubodhBhargava

CEO and Managing Director: Srinath Narasimhan

President, COO, and Managing Director Vinod Kumar

Competitors:

 Bharat Sanchar Nigam

 BhartiAirtel
 Mahanagar Telephone Nigam

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COMPANYS - VISION, COMMITMENT&STRATEGY

VISION

Deliver a new world of communications to advance the reach and leadership of our customers.

COMMITMENT

Invest in building long-lasting relationships with customers and partners and lead the industry in
responsiveness and flexibility.

STRATEGY

Build leading-edge IP-leveraged solutions advanced by our unmatched global infrastructure and
leadership in emerging markets.

TARGETED MARKET

Its target market was completely local and with this acquisition, the company will step into the
global scene. Its existing portfolio of services was:

 A video over fiber solution for transmitting multimedia content from India to US or other
markets.
 Event Broadcasting Service: To capture ad hoc breaking news and events for long
distance coverage.
 Digital Satellite News Gathering (DSNG) Service: This allowed instant news up-linking
for reporters.
 Broadcasting Services: Here, Tata Communications offered 2 formats – one for
delivering digital channels to overseas markets called Multi Channel Per Carrier (MCPC)
and Single Channel Per Carrier (SCPC) format for transmission of TV programs studio-
to-studio within India.
 Corporate Communications: Webcasting to communicate to offices in different
geographical locations.
 Network Services: For streaming content using e-cinema or Web TV. Also for managing
voice and data traffic, delivering video-on-demand.

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COMPANYS NETWORK& CLIENTS

The Tata Global Network includes one of the most advanced and largest submarine cable
networks, a Tier-1 IP network, with connectivity to more than 200 countries across 400 PoPs,
and nearly 1 million square feet of data center and co-location space worldwide.

Tata Communications' depth and breadth of reach in emerging markets includes leadership in
Indian enterprise data services, leadership in global international voice, and strategic investments
in operators in South Africa (Neotel), Sri Lanka (Tata Communications Lanka Limited), and
Nepal (United Telecom Limited).

Tata Communications will take over BT Group Plc(BT)’s proprietary digital media management
platform BT Mosaic, according to a notice issued to the BSE. Mosaic belongs to subsidiary
British Telecom Group Plc’s Media and Broadcasting division. The assets of the transaction
stood at 0.5 million pounds as of September 30, 2009.

With Mosaic, media companies can manage and monetize their digital content, gain analytics,
enable delivery in multiple formats and include third party software. It is targeted at production
houses, publishers, content providers and TV channels.

Mosaic’s Clients

Previously, Mosaic was completely deployed, managed and supported by BT – with the
takeover, BT will still continue to deliver support for its customers in US and Europe in all
countries through a sales channel agreement.

Some of BT’s clients for digital media solutions include Channel Five, Technicolor, CSI Sports
and Tate Online, a platform for art online for which BT was the primary sponsor between 2001
to 2009.

Among Indian clients, it serves

 Star TV: BT entered into network managed services deal with the broadcaster to speed
delivery of content from the broadcaster to US customers

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  NDTV: For distributing NDTV Good Times and NDTV Profit on its global IP network

 UTV: For delivering UTV movies to Direct DTH customers in US.

Tata Communications has a Tier-1 IP network called the Tata Global Network, to offer global
network access to the solution. The Tata Global Network reaches over 200 countries and has 400
points of presence which offer local connectivity to businesses.

SERVICES OFFERED:

Company offers a range of services including :

 transmission,
 internet protocol (IP),
 converged voice,
 mobility,
 managed network connectivity,
 hosting and storage,
 managed security,
 Managed collaboration and business transformation for global enterprises and service
providers.
 It also offers internet, retail broadband and content services for Indian consumers.
 The company’ Tata Global Network encompasses submarine cable networks connecting
more than 200 countries

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PERFORMABCE APPRAISAL

People differ in their ability and aptitudes. These differences are natural to a great extent and
cannot be eliminated even by giving the same basic education and training to them. There will be
some differences in the quality and quantity of work done by different employees even on the
same job. Therefore, it is necessary for management to know these differences so that the
employees having better abilities may be rewarded and the wrong placements of employee may
be rectified through transfers. The individual employee may also like to know the level of his
performance in comparison to his fellow employees so that he may improve upon it. Thus there
is great need to have suitable performance appraisal system to measure the relative merit of each
employee. The basic purpose of performance appraisal is to facilitate orderly determination of an
employee’s worth to the organization of which he is a part. However, a fair determination of the
worth of an employee can take place only by appraising numerous factors some of which are
highly objective, as for instance, attendance, while others are highly subjective, as for instance,
attitude and personality. Performance appraisal means systematic evaluation of the personality
and performance of each employee by his supervisor or some other person trained in the
techniques of merit rating. “Performance appraisal includes all formal procedures used to
evaluate personalities and contributions and potentials of group members in a working
organization. It is a continuous process to secure information necessary for making correct and
objective decisions on employees.”Performance appraisal is the systematic evaluation of the
individual with respect to his performance on the job and his potential for development.
Performance appraisal is concerned with determine the differences among the employees
working in the organization.

PURPOSES OF PERFORMANCE APPRAISAL

1) Promotions:- promotion is the most important objective of performance appraisal. It is to

the common interests of both the management and employees to promote employees into
positions where they can most effectively utilize their abilities. It is mismanagement to
promote employees into positions where they cannot perform effectively at the time in
question. A properly developed and administered performance appraisal system can aid
in determining whether individuals should be considered for promotion or not. The
system should rate the individual for the present job and his potentialities for the higher
job. A person performing his job well does not necessarily mean that he is fit for
promotion.

2) Human resource planning: -Performance appraisal generates significant, relevant and

useful information about the promotability and potential of employees. This information
is used to assess the organization’s internal supply of human resources and availability of
managerial personnel for succession planning.

3) Recruitment and selection:-Evaluation made in performance appraisal can be used to

find out the particular areas of knowledge, skills and experience which successful
performers possess. This information can be used to review effectiveness of recruitment
and selection procedures and practices so that right type of candidates can be selected.

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 4) Training and development:-Performance appraisal helps in identifying development
needs of employees. This information can be used to advise suitable training and
development programs to enable employees to overcome their weaknesses and improve
their strengths.

5) Compensation:-Information gathered through performance appraisal provides inputs for

making decisions concerning salary administration, financial incentives, appreciations,
additional responsibilities etc.

PERFORMANCE APPRAISAL PROCESS

 Establishing performance standards

 Communicating the standards to employees

 Evaluating actual performance

 Comparing actual performance with standards

 Discussing the appraisal results with the employees

 Taking corrective action, if necessary

METHODS OF PERFORMANCE APPRAISAL


 Written essay

 Critical incidents

 Checklist

 Graphic rating scale

 Behaviorally anchored rating scales (BARS)

 Group order ranking

 Individual or straight ranking

 Paired comparison

 MBO (result oriented appraisal method)

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  Group appraisal of subordinates

 Peers appraising the colleague

 Subordinates appraising the boss

 360 degree feedback method

 Assessment centers method

ERRORS IN PERFORMANCE APPRAISAL

 Leniency or severity error

 Central tendency

 Halo effect/error

 Similarity error

 Contrast error

 Shifting standards

 Influence of recent events

 Tendency to give high rating

 Length of service bias

 Personal bias

HOW TO MINIMISE ERRORS

 clearly defined performance dimensions and standards

 Performance appraisal only for providing feedback

 Combination of methods for appraising performance

 Continuous feedback

 many appraisers rating backed up with examples

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  Appraisal of subordinates on the same performance dimensions

 Appraiser with ability to appraise

 Training of appraisers

CHARACTERSTICS OF AN EFFECTIVE APPRAISAL SYSTEM

 Relevance

 Reliability

 Sensitivity

 Acceptability

 Practicability

PERFORMANCE APPRAISAL IN TELECOM SECTOR

In today’s competitive environment it is essential to harness individual aspiration and potential
and gear them suitably to meet business objectives. To make this happen, both you and the
organization would like to know how you have been performing and your potential for growth.

THE OBJECTIVES OF PERFORMANCE APPRAISAL

 To be developmental in nature where individuals grow with the organization.

 To integrate individual performance and contributions to larger organizational goals and
needs.
 To open greater communication between superior and subordinate.
 To ensure a realistic link between performance, recognition and reward.
 To provide core data for human resource development / organizational development
efforts.
 To encourage innovativeness through unique contribution.
 To focus on employee contribution and not on efforts.
 Motivation: To encourage people to improve their performance and develop their skills.
 Development: To provide a basis for developing and broadening attributes and
competencies relevant both to the current role and any future role the employee may
have the potential to carry out.
 Communication: To serve as a two-way channel for communication about roles,
objectives, relationships, work problems and aspirations

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APPRAISAL CYCLE

The appraisal cycle for DGM and above is 1st July to 30th June. Increments / promotions are
effective from 1st July every year.

The appraisal cycle for employees in grades M2 to M8 grade become effective from 1st Jan. each
year and from M8 to DGM from 1st April. Consequently, the appraisal period in respect of such
employees after promotion is of 15 month for the first year i.e. the next review would be on 1 st
April or 1st July, as the case may be, of the following year.

APPRAISAL OF EMPLOYEES ON DEPUTATION

In case the employees are working on deputation in a different company/division of Tata Comm.
, the parent company division shall carry out employees’ appraisal. This is not applicable to
employees in the categories of DGM and above and their cases will continue to be processed as
usual from the chairman / vice chairman’s office as is being done at present.

APPRAISAL OF TRAINEES. (all categories)

Only trainees who have been regularized (confirmed on or before 30th September) shall be
eligible for performance appraisal for that block of appraisal period. Trainees regularized there
shall be eligible for confirmation appraisal according to the rules laid there under.

CONFIRMATION APPRAISAL

Trainees on completion of the training period and employees on completion of probation period
shall be appraised for regularization / confirmations. During confirmation / regularization,
incumbents are evaluated for:-
1. Group performance
2. Personal performance
3. Supervision and leadership qualities
4. Developmental needs

Employees are covered for superannuating only after confirmation but with effect from their

date of joining.

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PERFORMANCE APPRAISAL PROCESS

OBJECTIVE:

To identify and categorize employees in JM cadre contributing at three distinct levels based on
performance review against last year’s KRAs (key result area) and assessment of competencies.

PROCESS:

Step 1: Appraiser to gather adequate data on the individual’s performance against

predefined KRAs .

Step 2: Appraiser to schedule a meeting for performance review with the appraisee. Discussion
to take place on a one-to-one basis in an uninterrupted manner and it is expected that
typically such a meeting would last for 60 to 120 minutes. This discussion would be
based on performance plan documents (KRAs) agreed last year.

Step 3: Appraiser to give feedback to appraisee based on his observations with emphasis on
performance aspects where appraisee can improve. Appraiser should avoid loaded /
judgmental terms that may lead to emotional setbacks.

Step 4: Towards conclusion, the appraiser should complete the form. This would form the
summary of discussions that took place between appraisee and appraiser.

Step 5: The performance against KRAs is to be quantified and scored out a maximum of 70
points. In addition, the appraiser needs to give score against competencies defined out a
maximum of 30 points. Thus each appraisee will have total score received out a
maximum of 100 points.

Step 6: Make out performance plan next year in the KRA format.

Step 7: The completed format with total score assigned based on the review may be
forwarded to the reviewer for his concurrence.

Step 8: Reviewer to review appraisals of all JM’s in his / her area to ensure that a fair
process has taken place and no biases have crept into the assessment.

Step 9: Thereafter, the data has to collected at DMC / Department level for each area.

15
 If the strength is less, appropriate aggregation at Divisional / Functional level may be done. For
example, in R&D center, aggregation may be done at a Divisional level. All JM’s have to be
ranked from top to bottom on a relative basis to arrive at the final ratings at this level. Concerned
HR Manager would help the DMC / MANCOM member in finalizing the ratings

Step 10: HR manager would summaries the data for whole of AMG and present before
business head for his concurrence before issuing letters to individuals.

PERFORMANCE RATING

The three performance rating categories and expected distribution pattern, as a percentage of is
as under.

Rating categories % distribution

Category-1 20%
Category-2 70%
Category-3 10%

In larger sections / departments, it will be much easier to assign rating based on above pattern.
However, in smaller sections, it may be a little difficult to practice. In addition, there will be
tendency to rank a person in the top percentile group when they are only one or two persons in a
section. In such cases it is suggested that, in the absence of anybody else in the section /
department to compare with. Consider the performance on absolute scale of best performance
and figure out his/her relative position in comparison with that. Another option is to ask oneself
that if the person under review were to be appointed again, will he/she is worth being recruited.
If the answer is not a resounding “yes”, then it can be concluded that the rating is definitely not
category-1. to be realistic, it is certainly lower than that. The appraiser’s prudent judgment is
important in this regard.

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MANAGERIAL PERFORMANCE APPRAISAL PROCESS

OBJECTIVE:

To identify and categorize employees of managerial cadre, in three distinct contributory levels
based on performance review against last year’s KRAs and assessment of competencies.

HOW TO FILL APPRAISAL FORM:

The managerial appraisal form consists of the following sections.

Section A: Review of goals achieved against KRA’s

Section B: Feedback on managerial competencies.

Section C: Development Needs.

Section A: Review of goals achieved against KRAs

This section consists of 70 points. In this section appraisee is required to fill details of KRAs,
objectives and achievements and assign weightages against each KRA, agreed in the beginning
of the review period. Appraiser is required to capture his/her observations and score each KRA.

Section B: Feedback on managerial competencies

This section consists of 30 points. In this section appraiser is required to give feedback on the
listed managerial competencies indicating the performance factor that best describes the
appraisee, substantiating it with actual events/behaviour.

Section C: Development needs

In this section the appraiser is required to fill in the strengths/areas of improvements relevant to
appraisee in carrying out his current job or higher responsibilities.

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REVIEW PROCESS:

The review discussion should take place on a one-to-one basis in an uninterrupted manner and it
is expected that typically such a meeting would last for about 60 to 120 minutes. This discussion
would be based on performance plan documents (KRA’s) agreed last year. Sequence of the
process would be as described below:-

Step 1: Appraiser to gather adequate data on the appraisee’s performance against predefined
KRAs.

Step2: Appraiser to schedule a meeting for performance review with the appraisee.

Step3: Appraiser to give feedback to appraisee based on his observations with emphasis on
performance aspects where appraisee can improve. Appraiser should avoid loaded /
judgmental terms that may lead to emotional setbacks.

Step4: Towards conclusion, the appraiser should complete the form. This would form the
summary of discussions that took place between appraisee and appraiser.

Step5: The performance against KRAs is to be quantified and scored out of a maximum of 70
points. In addition, the appraiser needs to give score against competencies defined out a
maximum of 30 points. Thus each appraisee will have a total score received out a
maximum of 100 points.

Step6: The completed format with total score assigned based on the review may be forwarded to
the reviewer for his concurrence.

Step7: Reviewer to review appraisals of all manager’s in his/her area to ensure that a fair process
has taken place and no biases have crept into the assessment.

Step8: Thereafter, the data is to be collected at DMG / Department level for each area. If the
strength is less, appropriate aggregation at Divisional / Functional level may be done. For
example, in R&D center, aggregation may be done at a divisional level. All managers’
have to be ranked from top to bottom on a relative basis to arrive at the final ratings at
this level as defined below. Concerned HR manager would help the DGM / MANCOM
member in finalizing the ratings.

Step9: HR would summarize the data for whole of AMG and present before business head for
his concurrence before issuing letters to individuals.

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PERFOMANCE RATING:

The three performance rating categories and expected distribution pattern, as a percentage is as
under.

Rating Category %age Distribution Description

Cat-1 20% top 20 percentile

Cat-2 70% next 70 percentile

Cat-3 10% bottom 10 percentile

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 REVIEW OF LITERATURE

European journal of social sciences-Hafiz Muhammad Ishaq& Muhammad

ZahidIqbal&ArshadZaher-They aims at outcomes of effective performance appraisal & factors
that can harm effectiveness of performance appraisal. The researcher designed a survey
questionnaire for managers’ uses five point linkert scale for all survey questions .For this three
hypothesis were tested & developed. Two independent samples T-test were performed.

At last they concluded that respondents are more aware about outcome of efficient performance
appraisal than factors that can make harm to the effectiveness of performance appraisal.

Herbert H.Meyer& John .R.P French-It is designed to find what is the purpose of appraisal
interview, how much effect does it have on job performance and how else workers can be
motivated to improve.Firstly traditional program is carried outwhich shows that criticism has
negative effect on achievement of goals.Performance improves most when specific goals are
established.Participation by employees in goal setting procedure helps to produce favorable
results.After this W P & R approach has come.In this more frequent discussion of performance,
salary discussion is hold separately.Emphasis is on mutual goal planning and problem
solving.Multiple studies concluded that traditional performance appraisal methods contains a no
of problems, two objectives accomplish providing a written discussion for salary
action,motivating the employees to improve his work performance.The two purposes are in
conflict. The appraisal discussion has little influenceon future job performance.Appreciable
improvement is realized only when specifiedgoals and deadlines are mutually established.W P&
R program proving to be more effective in improving job performance than traditional
performance appraisal method.

Journal of Managerial Psychology (2009)

This study is focus on effectiveness of PA has traditionally been assessed with one of the three
categories of criteria rater errors, rating accuracy, and qualitative aspects of the appraisal,
including employees' reactions. The most frequently assessed PA reaction is employee
satisfaction with the PA in part because it relates to employee productivity, motivation, and
organizational commitment.

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Performance appraisals are conducted annually at the time of the year, with six major objectives
as stated on the PA form to:

1. Provide employees with feedback to improve or maintain job performance;

2. Outline areas for employee development;
3. Set standards for the next review period;
4. Recognize job–related accomplishments (through merit raises);
5. Enhance communication and working relationships; and
6. Identify job performance deficiencies and report to the next level of supervisory
responsibility

Journal of Personnel Review (2010)

This study is focus on those employees who report low quality PA experiences as this can help
HR practitioners identify useful areas for improvement. job satisfaction, organizational
commitment and intention to quit and relationship with quality of an employee's PA experience.
This empirical research that suggests that performance appraisals do result in increases in
employee performance and productivity. . Employees evaluate the formal organizational
procedures and the way they are enacted) as well as how they are treated by PA decision-makers
when assessing the quality of their PA experience. The study is based on the results of a mail
survey of 6,957 employees of a large Australian public sector organization (“PSR”).This study
uses two forms of analysis. First, cluster analysis and second is multiple regression

Educational Research (ISSN: 2141-5161) Vol. 1(8) pp. 293-303 September 2010

The study evaluated the purpose of performance appraisal in private universities and identifies
relevant factors for achieving an effective performance appraisal. A cross- sectional survey was
selected for this study because it was easy to undertake and the results. The whole populations of
staff were selected as respondents. A structured questionnaire was used to collect the data for
analysis. The findings from the study have established that performance appraisal system is the
only tangible metric way by which an organization can know the level of performance of its
diverse members of staff. The effectiveness of performance appraisal systems in private
universities are only based on training the members of staff involved in the rating/ appraising
process and are multi- rating systems.

Sullivan, K. (ed.) introduces HRM practices that help MNCs to overcome knowledge transfer
barriers (knowledge-driven HRM practices). It argues that MNCs can institute various HRM
practices that impact knowledge transfer barriers associated with behavior of knowledge senders
and receivers.HRM practices relevant for absorptive capacity of subsidiary employees form two
groups –cognitive (job analysis, recruitment, selection, international rotation, career
management, training and performance appraisal) and simulative (promotion, performance based
compensation, internal transfer, orientation programs, job design and flexible working practices).
The application of cognitive HRM practices enhances the ability of knowledge receivers to
absorb transferred knowledge, while the use of simulative HRM practices increases their

21
motivation. Temporary and permanent types of international assignments respectively influence
the ability and motivation of expatriate managers to share their knowledge.

V.K Singh,BaniKauchar and SedatYuksel-The study provides a crisp and comprehensive

picture of the objectives with which the Indian organizations apply systems to appraise their
employees the basis the companies use to appraise their employees and the reasons for which the
companies have attempted to adopt new systems of performance appraisal performance appraisal
is the process of evaluating the performance and qualification of employees in terms of the
requirement of the job in which he is employed. They adopted different methods for evaluating
the performance appraisal. These are-
• First adoption was Grading System and grades are-

A+ - Exceptional

A -Top performance

B -Very good

C -Adequate

D -Inadequate

• Second adoption they used a methodology.

• Then they selected the study area method.

• Then they select the sample from the selected area.

• After that he selects the data.

• Then he makes a analysis of the data.

According to Scot &Spriegel,"Performance appraisal is a step where management finds out

how effective it has been at hiring and placing employees."According to him Performance
Appraisal has following objectives-

• Creation of forms related to Performance appraisal.

22
• Identify the level of Performance expected and set a standard for all the members.

• Design the system.

Dalemicz stated appraisal to be, “The basic human tendency to make judgments about
those one is working with as well as about oneself."

SoltaniE.Gennard.J. stated that," Performance appraisal is the value that can result from
using a combination of system and personal factors when measuring employee
performance in quality focussedorganization".At last they all conclude that performance
appraisal is one of the best methods of motivating the employees and their all-round
development as professionals.It also includes development and achievement of the
organization’s objectives in a perfect manner if implemented properly.

VijayaBanu and P Umamaheswari-Performance appraisal system not only evaluates

the employees' efficiency but also expectations and satisfaction regarding this job.For
evaluating the performance they adopt 360degree performance appraisal system.In this it
obtains appraisal from all angles that is employees,manager,customers and others

Adamik-This study found that managerial effectiveness improved over a two year period
when utilizing 360degree feedback evaluation.he adopts a methodology

-firstly data collection method.

-then research design.

-sampling design.

-then he collects the data.

-make analysis of the data.

Finally he find out the conclusion that 360degree performance appraisal system helps to
identify training needs,performance of the employees,determination of rewards and
incentives and steps to promote communication.

23
Thomas Decotiis and Andre Petit-This research identify that Performance appraisal are
used in an organization to take decisions like employees promotion,transfer and
allocation of financial rewards.

He adopts a literature based model and the major determinants are-

(a)Rater motivation

(b)Rater ability and

(c)Availability of appropriate judgemental norms.

On the basis of this model he finds out the conclusion that-

-It is voluminous.

-It is largely unsystematic.

In short Performance appraisal research has focussed on instrumentation at the expense of

the other.

Gregorio Billikopf-This paper introduces the Negotiated Performance Appraisal (NPA)

model, a facilitated performance appraisal processdesigned to enhance supervisor-
subordinate dialogue. It was first applied in Uganda in 1996, and has served to
improvehierarchical communication within organizations. This article is directed towards
facilitators involved in organizationaldevelopment, as well as organizational consultants
and workplace mediators. Supervisors are often hesitant to share their truefeelings—both
positive and negative—with subordinates. Subordinates, in turn, are apt to feel unduly
judged by theirsupervisors and frustrated with their jobs. Traditional performance
appraisals have long been criticized for not helping topromote effective dialogue. The
strength of the NPA model lies in its structure, which encourages candid two-
wayconversation about past, present, and future performance. It is precisely this candid
conversation that extends the usefulnessof the NPA beyond performance appraisal, as an
alternate mediation model for supervisor-subordinate disputes.

24
International journal of management-chengmingchu and darhsinchen-,In service industry they
made a study based on 328 questionaaire,125 from service industry and 203 from the
manufacturing.This study is aimed at exploring the differences in performance appraisal in these
both companies.

According to Chen ming-"Performance appraisal provides information for human

resources management to make fair decisions regarding
promotions,transfer,compensation incentives and training programmes.

They adopt a research method and it is based on questionnaire survey after this he make
analysis of the results and decide the appraisal timing and find out the performance
feedback.

At last he concluded that there is difference in appraisal system in different industries.This is

because of difference in appraisal personnel,appraisal tools,appraisal timing and appraisal
feedback.

JIING-LIH FARH, JAMES D. WERBEL, ARTHUR G. BEDEIANCollege of Business

Administration-Lxjuisiana State UniversityThis study investigated the effectiveness of a self-
appraisal-based performanceevaluation system (SABPE) that incorporates self-assessment
intotraditional supervisory evaluation procedures. Its subject sample consistedof 88 faculty
members and their chairpersons at a land-grant stateuniversity. Results indicated that (1) there
was high congruency betweenself- and chairperson ratings, (2) both ratings had moderate to high
levelsof criterion-related validity, and (3) both faculty members and chairpersonreported high
SABPE acceptance. The implications of these resultsfor future self-appraisal research are
discussed.

KanikaGoyal&Dr.Ashok Khuranaexplore theperformance appraisal practices of selected

Indiancompanies. It provides an insight into the concept of performance appraisal, the methods
and approaches of performance appraisal and the appraisal process etc. The study observes that
at L& T performance of human resources is appraised at three levels i.e. self appraisalby
employee reviewing his past performance, critical attributes appraisal by immediate supervisor.
Finally, the superior along with the employee carries out performance and development planning
for the future period. At Voltas limited, PA strives to identify competency gaps and aims at
employees’ development. At CMC Limited, performance appraisal is known as Performance
Department Review (PDR), self appraisal and appraisal by immediate manager is part of
appraisal process. It is evident that in the selected companies appraisal is mostly based on self
appraisal and appraisal by the immediate superior. The study observes that Performance
appraisal is indispensable to be aware of each employee’s abilities, competencies and relative

25
merit and worth for the organization. Finally, PA is a pre requisite for the success of any
organization as it aims at identification of competency gaps and taking steps to bridge such gaps
through appropriate HR development measures to face the challenges of competitive world.

26
 Research Methodology
Research can be defined as a careful investigation or inquiry especially through search for new facts in

any branch of knowledge. Research is, thus an original contribution to the existing stock of knowledge

making for its advancement. It is the pursuit of truth with the help of study, observation, comparison and

experiment. In short, the search for knowledge through objective and systematic method of finding

solution to a problem is research.

OBJECTIVES OF THE STUDY

1. To study the performance appraisal process of Junior Managers in the company.

2. To study the employees’ view points on their performance appraisal.

3. To study the effectiveness of appraisal system in the company.

4. To study, whether the system is helpful for both the employer (to communicate the
organizations plans, expectations, etc.) and employees ( to express the training & development
needs).

Research Design:

A research design is the arrangement of conditions for collection and analysis of data in a manner that

aims to combine relevance to the research purpose with combine in procedure. The current study is

Exploratory cum descriptive in nature.

Exploratory Research Design:

The main purpose of such studies is that of formulating a problem for more precise is that of formulating

a problem for more precise investigation or of developing the working hypotheses from an operational

point of view. The major emphasis in such studies is on the discovery of ideas and insights.

27
Descriptive Research Design:

Descriptive research studies are those studies, which are concerned with describing the characteristics of a

particular individual or of a group.

Sample design:

A sample design is a definite plan for obtaining a sample from a given population.

Universe: Universe refers to the entire population taken understudy. Here, the universe consists of Tata

Communication Companyin Gurgaon.

Size of sample:

This refers to the number of items to be selected from the universe to constitute a sample. In this study,

the sample size is fifty.

Sampling Procedure:

In sampling procedure the decision regarding technique to be used in selecting the items for the sample is

taken. Here the technique used is convenient sampling, area sampling.

Data Collection:

Data is of two types – Primary data the primary data are those, which are collected afresh and for the first

time and it is original in correct. Primary data are collected with the help of questionnaire.

Secondary Data:

Secondary data is that data which someone else has already collected and which have already been passed

through the statistical process. Here, secondary data is collected from journals, magazines, annual reports

and publications.

28
SIGNIFICANCE OF STUDY

Performance appraisal, also known as employee appraisal, is a method by which the job performance
of an employee is evaluated (generally in terms of quality, quantity, cost and time). Performance appraisal
is a part of career development.

Performance appraisals are regular reviews of employee performance within organizations. It provides
useful information for decision making in areas of promotion and merit rating and compensation reviews.
It links information gathering and decision making process, which are the basis for judging the
effectiveness of personnel sub functions such as recruiting, selecting and compensation. It helps in
pinpointing areas of concerns in the primary systems like marketing, finance and production. It enhances
understanding for training and counseling needs. It helps the employees to rectify their mistakes and get
ahead, focusing more on their unique strengths. It also helps the employees to improve their performance.
It helps the employer to get feedback. It also helps for constructing bonus or merit system. It helps to
implement strategic goals and clarify performance expectations.

29
 Data Analysis and Interpretation

Data Analysis:

After collecting the data it has to be processed and analyzed. The term analysis refers to the computation

of certain measure along with searching for patterns of relationship that exist among data groups. This

study involves percentage and appropriate analytical tools.

Data Interpretation:

Interpretation refers to the task of drawing inferences from the collected facts after at analytical study.

30
Employees Opinion as to the Purpose of Performance Appraisal

15% 16%

16% 20%

15% 18%

Compensation Decision Promotion Decision

Training & Development Programs Feedback

Personal Development Organizational Growth

31
Awareness of technique of Performance Appraisal being followed at Tata

Communication among Employees

Options Response

Yes 72

No 28

28%
Yes
72% No

32
Number of Employees being appraised during their service period

Options Response

Yes 86

No 14

14%
Yes

86% No

33
Review period of performance appraisal

Annually Biannually Quarterly Monthly

43 4 2 1
Q6.How often the
performance
appraisal is done & 86% 8% 4% 2%
reviewed?

APPRAISAL IS DONE & REVIEWED

45 43
40
35
30
25
20 Responses

15
10
4
5 2 1
0
A B Q M

A – Annually, B – Biannually
Q – Quarterly, M – Monthly

34
 SA A N D SD
Q7. Objectives of 19 26 3 1 1
performance
appraisal are clear 38% 52% 6% 2% 2%
to you.

Understanding of appraisal objectives

30
26
25

20 19

15
Responses

10

5 3
1 1
0
SA A N D SD

35
 Methods of performance appraisal

Q.What methods of Superior 360 degree MBO Any other

performance appraises
appraisal are 37 0 13 0
used?.
74% 0% 26% 0%

40 37
35
30
25
20
Responses
15 13

10
5
0 0
0
SA 360 MBO AO

36
Does performance appraisal leads to identification of hidden potential

Options Response ( in %

Yes 96

No 4

37
 SA A NA DA SD

24 22 1 1 2
Q9. Appraisal system
provides an opportunity
to you to have a clear 48% 44% 2% 2% 4%
understanding of what is
expected from you.

Clear understanding of the expectations

38
25 24
22

20

15

10

5
2
1 1
0
SA A N D SD

Responses

39
Q14. Appraisal provides 19 29 1 1 0
opportunityfor
discussion between you
& your appraiser on the
expectations, 38% 58% 2% 2% 0%
achievements and the
area of improvement
required.

Counseling facilitate discussion

30 29

25

20 19

15
Responses

10

5
1 1
0
0
SA A N D SD

40
Q16. Feedback helps 18 25 5 1 1
you to get insight into
your weakness and 36% 50% 10% 2% 2%
strengths.

Insight into weaknesses & strengths

25
25

20 18

15

Responses
10

5
5
1 1
0
SA A N D SD

41
 SA A N D SD
Q17. Appraisal system 21 25 2 0 2
provides you with an
opportunity to express 42% 50% 4% 0% 4%
your development need.

Expressing development needs

25
25
21
20

15

Responses
10

5
2 2
0
0
SA A N D SD

42
Employees’ opinion as to the present appraisal system

2%
27%
58%

13%

Fully satisfied Satisfied Can't say Dissatisfied

Options Responses (in %)

Fully Satisfied 2

Satisfied 58

Can’t Say 13

Dissatisfied 27

43
 Who should do the appraisal?

Options Response ( in % )

Superior 24

Peer 0

Subordinate 0

Self Appraisal 8

Consultant 4

All of the above 48

Superior + Peer 16

44
Employee perception as to the frequency of appraisal

0% 6% 2%
Once during the Service period
Continuous
Never
92%
Can't Say

Options Response (in %)

Once During The 2

Service Period

Continuous 92

Never 0

Can’t Say 6

45
If continuous appraisal – what should be the gap between two

appraisal period

Options Response (in %)

Quarterly 20

Half Yearly 44

Yearly 36

36% 20% Quarterly

44% Half Yearly

Yearly

46
Does appraisal help in polishing skills and performance area?

Options Response ( in %

Yes 74

No 10

Somewhat 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.

47
 Does personal bias creeps-in while appraising an employee

Options Response ( in %
)

Yes 82

No 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.

48
Appropriate method of conducting the performance appraisal

4% 6% 12%
0%
Rating Scale
20% Paired Comparison
Critical Incident
360degree
Assessment Centre
58%
MBO

Options Response ( in %
)

Ranking Method 12

Paired Comparison 0

Critical Incidents 20

360 degree 58

Assessment 4
Centre

MBO 6

49
If given a chance, would employees like to review the current

appraisal technique?

Options Response ( in % )

Yes 72

No 4

Can’t Say 24

50
 Findings & Conclusion

Findings

Out of 50 respondents different employees have different opinion about that whether
performance appraisal leads to,16%voted for compensation decision,20%to
promotion,18%to T&D,15%to feedback,16% to personal development and 15% to
organizational growth.

72%of the respondents are aware of the technique being followed in Tata
communication.

86%of the employees said that they are being appraised during their service period.This
shows that almost every employee is being appraised in any way.

The immediate superiors do appraisal in Tata communications. Assessment centers are also
used in TATA COMMUNICATIONS but for promotions only.

Normally performance appraisal is reviewed annually but sometimes it also reviewed

twice or thrice in a year.

96% of the employees believe that Performance appraisal performance appraisal leads to
identification of hidden potential. This shows that performance appraisal helps in
improving the feedback of the employees.It is good for both company and the employees,
for polishing skills and development area of the employees and to achieve desired
objectives.

90% of the respondents were strongly agree/agree with the statement, which state that
appraisal system provides an opportunity for understanding what is expected from the
employees.

Most of the respondents were satisfied with the appraisal done by the superiors. They
said that appraisal facilitates discussion between appraiser and appraisee, by which
appraisee come to know about their areas where they need improvements, what is
expected from them, what is their job all about and what factors affect their performance.

86% of the respondents were satisfied with the feedback given to them and they also
accepted that true feedback helps to get insight into their weaknesses and strengths.

There is also provision of recognition for high performance. They can easily express their
development needs.

51
 Out of 50 employees60%of employees are satisfied with the present appraisal system,
13%make the statement cant say and 27% of the employees are dissatisfied with the
present appraisal system.

Around 50% of the employees are of the opinion that appraisal should be done by all that is
by peers,subordinate and self appraisal as well.

92% of the employees are agree that appraisal should be continuous and time gap opinion is
20%said it should be revised quarterly 44% said half yearly and 36% said it should be
yearly revised.

Around 82% of the employees of Tata think that there is a personal creep in while appraising
the employees. So it is inevitable to say that personal bias do not creep in Tata
communication.

If given a chance 72% of the employees believe that they would like to review the current
appraisal system

Conclusion
In nutshell it can be concluded that performance appraisal system in Tata communications
is the effective one. Most of the employees are being appraised during their service period.
Appraisal is the most motivating factor for the employees to give their best. Appraisal helps
to improve the feedback of the employees and to achieve the goals and objectives of the
company. Appraisal helps the employees to get their weakness and strength by the feedback
they get from their supervisor. Employees of the company want that appraisal should be
continuous and should be done by subordinate peers and self appraisal as well. Few of the
employees are satisfied with the appraisal process and the criteria of the appraisal but many
of the employees do believe that there is personal biasness and some believe that if given a
chance they would like to review the present appraisal system.

52
 Suggestions

The purpose of performance appraisal is to reward the employees, give them recognition,
and help them in career growth. So, the employees should know the basis on which they
are evaluated. For this, company should arrange special classes like once in a year for
getting the employees aware about the whole performance appraisal process.

The production managers or the personnel managers should interact more directly with
their subordinates and try to know their needs, their problems and help or suggest them to
overcome those difficulties.

The company should invite suggestions from employees about changes or improvements
they want in the appraisal system.

The feedback process should be made more sound and effective so that the employees
could know the areas where their performance is low so that they could make it better in
the future.

Special training sessions should be organized besides regular training programmes for
low performance areas.

There should be more transparency in awarding marks to the employees. It should be

effectively based on the merit and performance of the employees and not on the basis of
any personal contacts, blood relation or any affection.

A small committee should be found that will keep a close watch on the whole exercise
and make ensure that it should be a fair process.

53
EXPECTED CONTRIBUTION FROM RESEARCH
Due to research I have done in Tata Communication employees of the company get more aware
of the method of performance appraisal being applied. Methods that are being applied to do
performance appraisal helps in personality development of employees that is indirectly beneficial
for the company.After getting benefits of performance appraisal feedback of the employees
improves that is helpful in achieving the goals and objectives of the company.Supervisor of the
company come to know that whether their subordinates are satisfied with their present appraisal
system or not and what changes should be done to make them satisfied and to improve their
performance.Employees of the company get motivated to do more work in more efficient
manner.

LIMITATIONS OF THE STUDY

A Few limitations and constraints came in way of conducted the present study:-

• Due to lack of time with authority, we could not get full information about the HR
policies in the company.

• We can’t visit to many companies in such a short time.

• Due to the lack of internet facility, we could not get the data of other companies.

• Employees are not so much cooperative in giving the response of questionnaire.

• Though no effort was spared to make the study more accurate.

• Main root of the research is questionnaire which has its own limitation like we cannot
measure reliability and accessibility.

.
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.

54
REFRENCES

 www.performance-appraisals.com

 www.google.com

 www.ssrn.com

 Group facilitation-A Research & application Journal(2010),

 Academy of management view(1998),

 European Journal of Social Science-(nov.2009),

 Harvad Business Review.

 The Icfain Journal of Management(2009),

 V.K Singh–B.Kouchar(2010)

 ,International Journal of Management Sept(2007)

 www.hr guide.com

 Kothari, C.R.,Research Methodology, 2nded,NewDelhi,

 New age International (p) Limited,1985

 Effects of human resource systems on manufacturing performance and turnover.

 Academy of Management Journal, 37, 670-687Baldwin, T., Magjuka, R. &Loher, B.

(1991).

 The perils of participation: Effects of choice of training on trainee motivation and

learning.

 Personnel Psychology, 44, 51-65.Bonache, J. & Fernandez, Z. (1997).

 Expatriate compensation and its link to the subsidiary Strategic role: A theoretical
analysis.

55
 International Journal of Human Resource Management.

 Alexander, D. M. (2006). How do 360 degree performance reviews affect employee

attitudes, effectiveness and performance?

 Research Series. Retrieved February 2, 2009 fromhttp://www.uri.edu/research/lrc/

research/papers/Alexander_360.pdf

 Performance Appraisal and 3600 Feedback- TVS Rao Arthur, J. (1994).

56
 QUESTIONNAIRE
(I) Employee details:

1) Full Name of employee:

2) Marital Status:
Married Unmarried
3) Gender:
Male Female
4) Age:
Below 30years B/W 30 to 45years
Above 45 years

(II) General questions:

1. Are you a new employee or a long-standing employee of the company………………….
2. How long have you been in your present job……………………
3. How do you work?
(i) Alone (ii) Part of a team (iii) Other (specify)……………

Q1. What in your opinion Performance Appraisal leads to (rank these, giving
6 pts.to the max.and 1 pt. to the min.):

a). Compensation Decision

b). Promotion Decision
c). Training and Development Programmes
d). Feed back
f). Organizational Growth

Q2. Are you aware of the system of Performance Appraisal being followed in your
Organization?

Yes No

Q3. Have you ever been appraised during your service period?

Yes No

Q4. How often the appraisal is done and reviewed?

a) Annually b) Biannually
c) Quarterly d) Monthly

57
Q5. Objectives of appraisal are clear to all subordinates.

a) Strongly Agree ( )
b) Agree ( )
c) Neutral ( )
d) Disagree ( )
e) Strongly Disagree ( )

Q6. What methods of performance appraisal are used?

a) Superior appraises the subordinates

b) 360 Degree
c) MBO
d) Any other, specify…

Q7. Does Performance Appraisal leads to identification of hidden potential of the

Employees?

a) Yes b) No
Q8.Appraisal system provides an opportunity to you to have a clear understanding of what is
expected from you.

a) Strongly Agree ( ) b) Agree ( )

c) Neutral ( ) d) Disagree ( )
e) Strongly Disagree ( )

Q9.Appraisal provides an opportunity for discussion between you & your appraisal on the
expectations, achievements and the area of improvement required
a) Strongly Agree ( ) b) Agree ( )
c) Neutral ( ) d) Disagree ( )
e) Strongly Disagree ( )

Q10. Feedback helps you to get insight into your weaknesses & strengths.

a) Strongly Agree ( ) b) Agree ( )

c) Neutral ( ) d) Disagree ( )
e) Strongly Disagree ( )

Q11.Appraisal system provides you with an opportunity to express your development need
a) Strongly Agree ( )b) Agree ( )
c) Neutral ( ) d) Disagree ( )
e) Strongly Disagree ( )

58
Q12. How do you find the present appraisal system?

a) Fully Satisfied b) Satisfied

c) Can’t Say d) Dissatisfied

Q13. In your organization who should appraise the employee?

a) Superior b) Peer
c) Subordinates d) Self Appraisal
e) Consultant f) All of the above

Q14. Should the appraisal process be?

a) Once during the service period b) Continuous

c) Never d) Can’t Say

Q15. What in your opinion should be the time period of conducting continuous

Appraisal?

a) Quarterly b) Half Yearly

c) Yearly

Q16. Does the appraisal system helps in polishing the skills or performance area?

a) Yes b) No c) Somewhat

Q17. Do you think personal bias creeps in while appraising an individual?

a) Yes b) No

Q18.What according to you should be the appropriate method for conducting

Performance appraisal?

a) Rating the employee on number of traits along with the range of performance for each
by the supervisor.

b) For every trait, each subordinate is paired with and compared to every other
Subordinate.

59
 c) Reviewing employees on the basis of identified specific examples of good
or poor performance.

d) Setting specific measurable goals with each employee and periodically

reviewing the progress made.

e) Reviewing performance through case studies, presentations, role playing, etc.

for future performance.

f) Receiving feedback from people whose views are considered helpful and relevant
including the appraisee himself.

Q19. If given a chance or an opportunity would you like that the current appraisal
procedure should be reviewed?

a) Yes b) No

c) Can’t Say

Q20. Suggestions and views……………………………………...............................

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

60