PERFORMANCE MANAGEMENT SYSTEM IN VODAFONE ESSAR SPACETEL LIMITED A PROJECT REPORT Under the guidance of MS BHUBASMITA BASUMATARY Submitted

by RITURANI KHOUND [ROLL NO 510924628] in partial fulfillment o f the requirement for the award of the degree Of MBA IN Human Resource Management

November 2010

Acknowledgement: THE HELP AND GUIDANCE OF THE FOLLOWING SOURCES IS ACKNOWLEDGED IN PREPARATION OF THIS PROJECT. 1. VODAFONE ESSAR SPACETEL LIMITED WEBSITE 2. COLLEAGUES OF VODAFONE ESSAR SPACETEL LIMITED FOR FEEDBACK. 3. WORLD WIDE WEB IN GENERAL

Bonafide Certificate:

BONAFIDE CERTIFICATE Certified that this project report titled PERFORMANCE MANAGEMENT SYSTEM IN VODAFONE ESSAR SPACETEL LIMITED is the bonafide work of RITURANI KHOUND [ROLL NO 510924628] who carried out the project work under my supervision.

SIGNATURE BISWAPRIYA SYAM HEAD OF THE DEPARTMENT MANAGEMENT DEPARTMENT IFUTURE COLLEGE OF TECH AND MGT CARE BLDG, MALIGOAN GUWAHATI-11

SIGNATURE BHUBASMITA BASUMATARY FACULTY IN CHARGE MANAGEMENT DEPARTMENT IFUTURE COLLEGE OF TECH AND MGT CARE BLDG, MALIGOAN GUWAHATI-11

Executive Summary: Performance Management System as a yard stick for measuring the contribution of an employee as an individual as well as in a team in an organization has varying levels of acceptance both in terms of perception as well as utility. The target population (viz assesses) view it differently vis a vis its efficacy. A reporting officer without proper understanding of the concepts of PMS may end up jeopardising the career of a promising employee because of personal issues. Similarly he may elevate a not so deserving employee because of his fondness. There has been a consistent approach to develop a Performance Management System that is objective, fair and positive in outlook. The objective of carrying out a survey on PMS among Interact employees was to gain feedback on various aspects of PMS in vogue in Vodafone Essar Spacetel Limited. The study revealed that majority of the respondents was relatively aware of the purpose, yardstick and technique of PMS in Vodafone Essar Spacetel Limited . However, among the respondents the satisfaction level was 26%, 44% respondents were not sure and 30% were dissatisfied. So, overall people wanted a change in the system. An overwhelming majority (82%) of the respondents felt that personal bias creeps in while apprising an employee. In view of the findings it is desirable that PMS should be a continuous process. The system should be objective in nature free of any biases. An attempt should be made to find out the hidden potential of an individual and encourage his or her development. The PMS should be devised in such a manner that it contributes to efficacy, development and growth of the organization.

TABLE OF CONTENTS

CNo. 1. 2. 3. 4. 5. 6. 7.

TITLE................................................................................... PAGE NO. INTRODUCTION .............................................................................. 13 COMPANY PROFILE ...................................................................... 17 BRIEF ON PERFORMANCE .......................................................... 32 RATIONALE OF THE STUDY ....................................................... 61 OBJECTIVES OF THE STUDY ...................................................... 80 FINDINGS AND ANALYSIS ........................................................... 88 LIMITATIONS OF THE STUDY ................................................... 96

List of Tables Table 3.1: Band Structure Band J I H G F Designations Management Trainee Executive, Senior Executive Assistant Manager, Deputy Manager Manager, Senior Manager DGM,GM,AVP,VP

Table 3.2: PMS Calendar 1 2 3 5 6 Issue of PMS forms in portal my world Upload of KPA by employees Reporting manager to approve the KPA uploaded by employee Mid Year Performance Review by employee in My World portal Reporting manager puts his ratings & comments against the KPA uploaded by employee Annual Performance Review by employee in My World portal Reporting manager puts his ratings & comments against the KPA uploaded by employee Normalization of PMS Feedback discussion between Employee & Manager after Mid Year Review 16th to 20th August 21st to 25th August 30th August 1st to 10th Oct 15th to 17th Oct 15th March to 31st March 1st April to 15th April 16th to 20th April 1st May to 25th May HR Department Employee Reporting Officer & Reviewer Employee Reporting Officer & Reviewer Employee Reporting Officer & Reviewer Normalization Committee Reporting Officer & Reviewer

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Table 6.1: Employees Opinion as to the Purpose of Performance Appraisal Performance standards/yardsticks Options Yes No Response 42 08

Table 6.2: Awareness of technique of Performance Appraisal being followed at Vodafone Essar Spacetel Limited among Employees Options Yes No Response 36 14

Table 6.3: Number of Employees being appraised during their service period Options Yes No Response 50 0

Table 6.4: Employees opinion as to the present appraisal system Options Fully Satisfied Satisfied Cant Say Dissatisfied Responses (in %) 2 24 44 30

Table 6.5: Employee perception as to the frequency of appraisal Options Once During The Service Period Continuous Never Cant Say Response (in %) 2 92 0 6

Table 6.6: gap between two appraisal periods Options Quarterly Half Yearly Yearly Response (in %) 20 44 36

Table 6.7: Performance Appraisal affects the productivity of the employees + Feedback - Feedback Neutral 38 12 -

Table 6.8: Concern person to do the appraisal Options Superior Peer Subordinate Self Appraisal Consultant All of the above Superior + Peer Response ( in % ) 24 0 0 8 4 48 16

Table 6.9: help in polishing skills and performance area Options Yes No Somewhat Response ( in % ) 74 10 16

Table 6.10: personal bias creeps-in while appraising an employee Options Yes No Response ( in % ) 82 18

Table 6.11: would employees like to review the current appraisal technique Options Yes No Cant Say Response ( in % ) 72 4 24

Table 6.12: Appropriate method of conducting the performance appraisal Options Ranking Method Paired Comparison Critical Incidents MBO Assessment Centre 360 degree Response ( in % ) 12 0 20 58 4 6

Table 6.13: performance appraisal leads to identification of hidden potential Options Yes No Response ( in % ) 96 4

List of tables 1. 2. 3. Table3.1: Band Structure Table3.2: PMS Calendar Table 6.1: Employees Opinion as to the Purpose of Performance Appraisal Performance standards/yardsticks. 4. Table 6.2: Awareness of technique of Performance Appraisal being followed at Vodafone Essar Spacetel Limited among Employees. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Table 6.3: Number of Employees being appraised during their service period. Table 6.4: Employees opinion as to the present appraisal system. Table 6.5: Employee perception as to the frequency of appraisal. Table 6.6: gap between two appraisal periods. Table 6.7: Performance Appraisal affects the productivity of the employees. Table 6.8: Concern person to do the appraisal. Table 6.9: help in polishing skills and performance area. Table 6.10: personal bias creeps-in while appraising an employee. Table 6.11: would employees like to review the current appraisal technique. Table 6.12: Appropriate method of conducting the performance appraisal. Table 6.13: performance appraisal leads to identification of hidden potential

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List of Figures

Figure 2.1: Group Company wise market share as on 31/5/2010

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Figure 3.1: Performance dialogue process List of Figures 1. Figure 2.1: Group Company wise market share as on 31/5/2010 2. Figure 3.1: Performance dialogue process

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CHAPTER NO 1
INTRODUCTION

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PERFORMANCE APPRAISAL SYSTEM AT VODAFONE ESSAR SPACETEL LIMITED

INTRODUCTION TO THE TOPIC The service industry forms a backbone of social and economic development of a region. It has emerged as the largest and fastest-growing sectors in the world economy, making higher contributions to the global output and employment. Its growth rate has been higher than that of agriculture and manufacturing sectors. It is a large and most dynamic part of the Indian economy both in terms of employment potential and contribution to national income. It covers a wide range of activities, such as trading, transportation and communication, financial, real estate and business services, as well as community, social and personal services. Service sector is the lifeline for the social economic growth of a country. It is today the largest and fastest growing sector globally contributing more to the global output and employing more people than any other sector. The real reason for the growth of the service sector is due to the increase in urbanization, privatization and more demand for intermediate and final consumer services. Availability of quality services is vital for the well being of the economy. In alignment with the global trends, Indian service sector has witnessed a major boom and is one of the major contributors to both employment and national income in recent times. The activities under the purview of the service sector are quite diverse. Trading, transportation and communication, financial, real estate and business services, community, social and personal services come within the gambit of the service industry.
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An industry comprised of companies that primarily earn revenue through providing intangible products and services. Service industry companies are involved in retail, transport, distribution, food services, as well as other service-dominated businesses. Human Resource (or personnel) management, in the sense of getting things done through people, is an essential part of every managers responsibility, but many organizations find it advantageous to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently. People are our most valuable asset is a clich, which no member of any senior management team would disagree with. Yet, the reality for many organizations are that their people remain under valued, under trained and under utilized. Performance Appraisal is the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. It consists of all formal procedures used in the working organizations to evaluate personalities, contributions and potentials of employees.

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ROAD MAP Managing human resources in todays dynamic environment is becoming more and more complex as well as important. Recognition of people as a valuable resource in the organization has led to a better working environment, overall development of employees, job security, etc My research project deals with Performance Management system in Vodafone Essar Spacetel Limited. In this report, I have studied &evaluated the performance appraisal process as it is carried out in Vodafone Essar Spacetel Limited. The report is divided in to Seven Chapters. The first chapter deals with introduction. In the second chapter, I have given the background of my Organisation i.e. Vodafone Essar Spacetel Limited. I have given a brief outline of the various departments as well as their functions. The third chapter deals with the Performance Management System in Vodafone Essar Spacetel Limited. The chapter includes the various forms used in PMS in Vodafone Essar Spacetel Limited. In the fourth chapter I have briefly discussed the rationale of the study. The fifth chapter deals with the objectives. The sixth chapter is dedicated to the findings and analysis. In the last chapter I have discussed about various limitations as well as my suggestions.

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CHAPTER NO 2
COMPANY PROFILE

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COMPANY PROFILE

2.1 Organisation Brand Name Network Network coverage Subscribers base Market share : : : : : Vodafone GSM Pan India 111.47 million across India as at 31 July 2010 23.81%

Vodafone was formed in 1984 as a subsidiary of Racal Electronics Plc. Then known as Racal Telecom Limited, approximately 20% of the companys capital was offered to the public in October 1988. It was fully demerged from Racal Electronics Plc and became an independent company in September 1991, at which time it changed its name to Vodafone Group Plc. Following its merger with AirTouch Communications, Inc. (AirTouch), the company changed its name to Vodafone AirTouch Plc on 29 June 1999 and following approval by the shareholders in General Meeting, reverted to its former name, Vodafone Group Plc, on 28 July 2000. Vodafone is the worlds leading international mobile communication group working in about 31 countries across 5 continents with nearly 41 network partners 347 million customers excluding paging customers, calculated on a proportionate basis in accordance with the Company's percentage interest in these ventures. (As at 30 June 2010) worldwide.

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Vodafone Essar started its operations in India in 1994 and is under the Vodafone Group. The company Vodafone Essar Limited has become one of the leading companies in the telecom sector in India due to its high standard of services that it provides to its customers. Over the years, Vodafone Essar, under the Hutch brand, has been named the Most Respected Telecom Company, the Best Mobile Service in the country and the Most Creative and Most Effective Advertiser of the Year. Vodafone offers both postpaid and prepaid GSM cellular mobile coverage all across India and its hold is especially strong in the metropolitan cities. The company Vodafone Essar Limited provides services like 2G, which are based on 1800 MHz and 900 MHz GSM digital technology. Vodafone Essar Limited has received many awards over the years such as the Best Mobile Service in India, Most Effective and Most Creative Advertiser of the Year, and Most Respected Telecom Company. The company Vodafone Essar Limited plans to spend more than Rs.250 crore in launching low price cell phones in India. The company's objective in doing this is to bring in millions of cheap mobile handsets from around the world into the country and then sell them under the Vodafone brand name in order to maximize sales. It is expected that the company Vodafone Essar Limited will price the handsets in the range of Rs.666, Rs.999, and Rs.888. In this way the company expects to attract new customers and thus expand its customer base.

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Vodafone Essar plans to sell the low price handsets from its more than 4 lakhs distribution outlets. The company will buy the low cost cell phones from the firm ZTE that is located in China. The company ZTE will ship more than 10 million low cost cell phones to India that will then be sold by the company Vodafone Essar. Vodafone Essar Company also has plans to expand in the near future and for this it is planning to take a loan overseas of around US$ 500 million. The company Vodafone Essar Limited will use the money to expand the companys network, better its technology, and open more distribution centers. All these measures will help to increase the customer base of the company Vodafone Essar. Vodafone Essar is one of the topmost companies in the telecom sector in India and is well known for the best quality of products and services offered to its customers. And this is the reason that the customer base of the company Vodafone Essar limited has been increasing at a very rapid pace. The company is planning to launch low price cell phones in the country and also expand its operations. This is sure to help the company Vodafone Essar to grow and prosper even more in the future

2.2 Growth of Hutchison Essar (1992-2005) In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994 was awarded a licence to provide mobile telecommunications services in Mumbai (formerly Bombay) and launched commercial service as Hutchison Max in November 1995. Analjit Singh of Max still holds 12% in company.

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In Delhi, UP (E), Rajasthan and Haryana, ESSAR was the major partner. But later Hutch took the majority Stake. By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison Whampoa had acquired interests in six mobile telecommunications operators providing service in 13 of India's 23 licence areas and following the completion of the acquisition of BPL that number increased to 16. In 2006, it announced the acquisition of a company (Essar Spacetel A subsidiary of Essar Group) that held licence applications for the seven remaining licence areas. In a country growing as fast as India, a strategic and well managed business plan is critical to success. Initially, the company grew its business in the largest wireless markets in India in cities like Mumbai, Delhi and Kolkata. In these densely populated urban areas it was able to establish a robust network, well known brand and large distribution network -all vital to long-term success in India. Then it also targeted business users and high-end post-paid customers which helped Hutchison Essar to consistently generate a higher Average Revenue Per User ("ARPU") than its competitors. By adopting this focused growth plan, it was able to establish leading positions in India's largest markets providing the resources to expand its footprint nationwide. In February 2007, Hutchison Telecom announced that it had entered into a binding agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity and loan interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses and interests) of approximately US$11.1 billion or HK$87 billion. In the same year, the company entered into an agreement with NTT DoCoMo to launch i-mode mobile Internet service in India.
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1992: Hutchison Whampoa and Max Group established Hutchison Max 2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets through ESSAR acquisition 2001: Won auction for licences to operate GSM services in Karnataka, Andhra Pradesh and Chennai 2003: Acquired AirCel Digilink (ADIL ESSAR Subsidiary) which operated in Rajastan, Uttar Pradesh East and Haryana telecom circles and renamed it under Hutch brand 2004: Launched in three additional telecom circles of India namely 'Punjab', 'Uttar Pradesh West' and 'West Bengal' 2005: Acquired BPL (Except Mumbai)- 3 Circles, another mobile service provider in India 2008: Vodafone acquired the Licence in remaining 7 circles and has started its pending operations in Madhya Pradesh/Chhattisgarh with its headquarters at Malviya Nagar, Bhopal as well as in Orissa, Assam, North East and Bihar 2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2.75G network. Hutch was often praised for its award winning advertisements which all follow a clean, minimalist look. A recurrent theme is that its message Hello stands out visibly though it uses only white letters on red background. Another recent successful ad campaign in 2003 featured a pug named Cheeka following a boy around in unlikely places, with the tagline, Wherever you go, our network follows. The simple yet powerful advertisement campaigns won it many admirers.

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2009: Vodafone launched Recharge Online 2009: Vodafone Essar - 1st Indian Telecom operator to receive the Payment Card Industry Security Standard (PCI DSS) certification for its Mumbai operations and launches unlimited SMS offer in Mumbai. 2010: Vodafone emerged as the most admired marketer in India. 2010: Vodafone crossed 100 million subscribers in India. 2010: Vodafone picks Nokia Siemens, Ericsson as 3G partners

2.3 Market Share

Figure 2.1: Group Company wise market share as on 31/5/2010 India telecom market is mainly divided into two major segments namely, the Fixed Service Provider (FSPs) and the cellular services. Fixed Service Provider network
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comprises land lines, basic services, domestic and long distance call service. The two major basic operators BSNL and MTNL comprise almost 90 % of the FSPs in the country. Around 5 % are operated by private firms and are mostly scattered in the urban areas. In most cases, the private basic service telephone operators cater to offices, business firms, schools and the corporate sector. In case of the cellular services, there are mainly two sub divisions: Code Division Multiple Access (CDMA) and Global System for Mobile Communications (GSM). In the GSM sector, the major players are Vodafone, Airtel, Idea Cellular, and Aircel and so on. The national company BSNL also has its GSM service named "Cellone" which has a major share in the semi urban and rural areas. The major companies which dominate the CDMA scenario are Reliance Communications and Tata Indicom. In both the sectors of cellular services, perfect competition exists according to the demand supply chains. The India telecom market ranks among the fastest growing industries in the country. The improvement in the standard of living and the development of infrastructure and connectivity are some of the mains reasons for the significant growth of the telecom industry. The growth is expected to be more over the years. The mobile services were commercially launched in August 1995 in India. In the first 5-6 years, the average monthly subscribers were around 0.05 to 0.1 million only and the total mobile subscribers base in December 2002 stood at 10.5 million. The subscription base just grew exponentially, reaching to around 2 million per month in the year 2003-04 and 2004-05. In May 2006, subscription crossed the 100 million mark. By September 200, it had doubled. The accelerating pace of this industry in India is clear. This growth has occupied all predictions.

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Presently, there are around 200 million telephone lines in India which make it the third largest phone network in the world after China and the US. The average growth rate of subscriber base is 61.41% in 2004, 35.48%t in 2005, and 40.17% in 2007; it may be increase to 50 to 70 per cent in the next coming years. Till year 2007 Bharti AirTel have most of cellular subscribers in India, AirTel have a total 42.70 million (23.09% of total) and BSNL have 32.05 million subscribers (17.24% of total) which in a second rank, Reliance, and Vodafone also near about them on end of 2007. Today, the telecom market in India enjoys a growth rate of around 45 % which is the highest in the whole world. Total cellular services revenue in India is projected to grow at a compound annual growth rate (CAGR) of 18% from 2008-12 to exceed $37 billion, according to a report by Gartner, Inc. The India mobile subscriber base is set to exceed 737 million connections by 2012, growing at a CAGR of 21% in the same period. This growth is poised to continue through the forecast period, and India is expected to remain the worlds second largest wireless market after China in terms of mobile connections. Although cellular network were introduced in India 7 years later than in China, Indias growth has overtaken Chinas in the same time frame since inception. A chart (Figure 2.1) taken from India-Cellular.com reflects the market share of the main players as of May 2010

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2.4 Departments

HR & Administration Finance Customer Service Sales & Marketing Network Legal & Nodal IT

2.4.1 HR & Administration:

Major jobs of HRM Department: Strategic Human Resource Planning HR Auditing and Needs Assessments Workforce Planning Change Management Performance Management Total Compensation, Benefits & Rewards Industrial & employee Relation

Recruitment Secretariat Concern for overall design and accomplishment of personnel recruitment policy and criterion.

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Personnel Admin Section Concern for personnel selection, retention, promotion, termination and disciplinary action.

Planning & Record Section: Concern to upkeep and update personnel record with strict confidence and manpower planning for forthcoming telecom project

Training & Vehicle Section Concern for periodic education and training management. It is also concern for vehicle operation, maintenanceand distribution.

Mgmt Devt & General Admin Section Concern to deal staff benefit, trade union activity, building upkeep and sanitation.

Performance Apprisal Section Concern for maintaining the record of personnel performance appraisal

2.4.2 Finance

Major jobs of Finance Department:

Financial planning & control Treasury management Budget preparation and budgetory control
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Revenue, interadministration and sharing accounting Preparing annual and quarterly financial statement Reporting to statutory and regulatory authority Fixed assets recording and management Inter branch accounting administration Corporate tax and vat filing Employees welfare management Procurement

Finance department consist of three sections:

Finance Department: Procurement Section Expenditure Section Cash & Bank Section Welfare Section

Revenue Department: Treasury Management Section Interadministration Accounting Section Revenue Section

Central Accounts Department: Financial Statement Section

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Branch Accounts Section Fixed Assets Section VAT & Tax Section

2.4.3 Customer Service Customer Service department consist of three sections:

Call Center

Receive the complains from the customer. Try to resolve he issues face the customer. Provide information regarding the product & services provided by the company Out calling the customers relating to bill payment. Activation

Activate the SIMS Activate the services the customers

Quality 1. 2. Inspects the quality of process of Customer Service & call center Report if there is a deviation from the processes of Customer service.

agents

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Complain Management

Resolve the complains that the customer put forward over e-mail, walk-in and call center.

2.4.4 Sales & Marketing

To look into the sales (Primary, Secondary, Tertiary) To increase the connection net adds. To increase the revenue. To design the products. To look into the advertising activities. 2.4.5 Network

To increase the network coverage. Troubleshooting of network related issues. 2.4.6 Legal & Nodal

Legal Section Concern for all legal issues of the company and perform the legal advisory role and advocacy.

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Nodal Section Concern for all issues of the company relating to TRAI and security agencies.

2.4.7 IT

To support the organization with software To support the organization with IT hardware.

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CHAPTER 3
BRIEF ON THE NEW PERFORMANCE MANAGEMENT SYSTEM

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PERFORMANCE MANAGEMENT IN VODAFONE ESSAR SPACETEL LIMITED

BRIEF ON THE NEW PERFORMANCE MANAGEMENT SYSTEM The objective of the proposed PMS is to promote performance oriented culture, to realign goal of an individual with the objective of the organization . to bring transparency, objectivity and participative approach in evaluating the performance of the executives . As we continue to grow as an organization, we need to re-define our existing systems and processes to keep pace with our business goals and objectives. The new features of this years Performance Dialogue are as follows Simple & efficient process IT as an enabler Sharper performance differentiation & sharper descriptors (PIGEX) Renewed process flow - few sequential steps made parallel Compressed timelines Shorter Sign off process- retaining the rigour of approvals across levels

sans the bureaucracy The Performance Dialogue has a NEW scale this year PIGEX which will be used to evaluate and assess your teams overall performance. It is our endeavor to

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create a high performance culture which supports the achievement of individual, team and organizational goals. Rating Scale & Descriptors PIGEX SCALE X - Exceptional Performance: Shows outstanding performance against goals. This person is performing exceptionally well above the expectations of the role. Score 460 and above E - Exceeding Expectations: Regularly exceeds goals. This is an individual who regularly exceeds the expectations of the role. Score 400 to 459 G - Good Performance: All goals met and occasionally exceeded. This is an individual who requires minimum guidance. Score 300 to 399. I - Improvement Required: Most, but not all, goals achieved. This person may need guidance and support to perform adequately in the role. Score 200 to 299 P - Poor Performance: Many Key goals not met. Performing well below expectations and requirements of the job. Low level of performance is not due to lack of clarity, opportunity or development. This level of performance is not acceptable and signals real improvement is needed. Score 0 to199

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Ratings are a function of calibration at the function / circle / OpCo levels. The distribution curve for the 2009-10 Performance Dialogue cycle will be as below: X 5% of employees E 15% of employees G 65% of employees I 10% of employees P 5% of employees The PMS process consists of following stages :A. Performance Planning :- Setting goals / targets / Key performance areas on mutually agreeable and after sufficient discussions between Reporting Officer and the Executive. The KPAs has to be - SMART (Specific, Measurable, Agreeable, Realistic and Time bound) The weightages to the each KPA is assigned depending on the level of challenge in its achievement. B. Mid Year Review: - Review progress, re-visiting KPAs, ear1y warning of non-performance etc. The assessing of resources, skill requirement and feedback on other parameters. C. Annual Assessment: - Discuss and arrive at an assessment of performance with respect to agreed target, competence and potential of core values actualisation by individual.

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D. Feedback, Coaching & Counseling: - Communicating the financial performance and providing developmental feedback. PMS linkage will be made with training and development, reward system, career development etc. The audit of PMS will be done to achieve and maintain the objective of the systems. The proposed PMS envisages open communication and continuation between rated officer and his supervisor and major shift in feedback the role of supervisor from Judges to guide in achieving the objectives of the organization. The executives will be appropriately trained . Performance dialogue is an important part of the assessment process where you share your views regarding performance, key accomplishments, strengths, developmental needs and receive feedback from your reporting manager on these areas. Vodafone Essar Spacetel Limited has a Band structure according to the hierarchy in the organization. The Band Structure is as follows: Table3.1: Band Structure

Band J I H G F

Designations Management Trainee Executive, Senior Executive Assistant Manager, Deputy Manager Manager, Senior Manager DGM,GM,AVP,VP

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A snapshot of the Performance dialogue process is as below:-

Figure 3.1: Performance dialogue process The PMS Calendar is as follows : Table3.2: PMS Calendar

1 2 3

Issue of PMS forms in portal my world Upload of KPA by employees Reporting manager to approve the KPA uploaded by employee

16th to 20th August 21st to 25th August 30th August

HR Department Employeee Reporting Officer & Reviewer

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5 6

Mid Year Performance Review by employee in My World portal Reporting manager puts his ratings & comments against the KPA uploaded by employee Annual Performance Review by employee in My World portal Reporting manager puts his ratings & comments against the KPA uploaded by employee Normalisation of PMS Feedback discussion between Employee & Manager after Mid Year Review

1st to 10th Oct 15 to 17th Oct 15th March to 31st March 1st April to 15th April 16th to 20th April 1 May to 25 May
st th th

Employeee Reporting Officer & Reviewer Employeee Reporting Officer & Reviewer Normalisation Committee Reporting Officer & Reviewer

10 11 12

My World Portal: It is a internal Portal of Vodafone Essar Spacetel Limited through PMS is done . Some of the Snapshots of the portal are

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Employee Log In

Log onto My World

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Click on My career

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Click on Mid Year Performance Dialogue

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Click on Self Assessment

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Click on Submit

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Reporting Manager Log In Click on Reporting Manager Comments

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Click on Employees Number hyperlink

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Enter the Ratings

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Enter progress on developmental plan, Overall Review Comments

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Click on Submit

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Performance and Competence Assessment Form To be filled by the employee

Annual Performance Dialogue Review Period Name : Location : Date of joining : KPA Measurement criteria Self Assessment Comments KPA Measurement criteria Self Assessment Comments KPA Measurement criteria Self Assessment Comments KPA Measurement criteria Self Assessment Comments KPA Measurement criteria Self Assessment Comments KPA Measurement criteria Self Assessment Comments Band : Reporting Manager : Emp No : Designation : Function : Reviewing Manager : Weightage

Weightage

Weightage

Weightage

Weightage

Weightage

The employee has to fill up six KPA and the total weight age is 100

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Sample filled up Copy of the Above (by employee)

Annual Performance Dialogue Review Period Name : XYZ 01 April 2009 to 31 March 2010 Location : Date of joining : KPA Manufacture of numbers Measurement criteria Self Assessment Comments KPA U Vision to HLR Audit Audit of Demographic Details Measurement criteria Self Assessment Comments KPA Acitvation Measurement criteria Self Assessment Comments KPA NMS Measurement criteria Self Assessment Comments KPA UAT Measurement criteria Self Assessment Comments 0% Error for new product roll out For the new products UAT had been done & the poducts had rolled out with 0% Error Marketing: Experiment undertaken to send SMS verbiage in local language(English text) & free minute offers in seconds Weekly reporting of Number utilization NMS tracker is prepared to capture the utilised, reserved & unutilised MSISDN for each series & it is reported Marketing: Regular Informatory campaigns send to retailers & customers Weightage 10 100% Reconciliation of activate base in U Vision to HLR. Daily Audit and MIS Daily basis reconcilation audit of active base in U-VISION & HLR is done. Marketing: Configured RA Offers Weightage 10 100% Activation of all SIM Delivered to be ensured and reported on a daily basis Daily basis reconcilation audit of active base in U-VISION & HLR is done. Marketing: Analysis of campaigns done monthly Weightage 20 Ensure 100% numbers are manufactured and configured in IN All the MSISDN that has been manufactured in U-VISION, the profile are being successfully created in HLR & IN ,i.e , after MSISDN-SIM pairing is done in U-VISION , simultaneous configuration is done in HLR & IN . Marketing: Launched SMS campaign through chordiant .After the launch of Chordiant ,the number of campaigns has increased . JAN-196,FEB-344 Weightage 25 Assam Band : Band I Reporting Manager : Emp No : ABC 1234 Function : Reviewing Manager : Marketing Operations DEF Weightage 20 Designation : Executive

March 17,2008

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KPA Automation/Improvement of Process Measurement criteria Self Assessment Comments Atleast two process improvement or automation with Sign Off

Weightage 15

The two processes(i.e new prepaid activation process & deletion of MSISDN) has been improved & both the processes has been Signed Off Marketing: Configured 121 offers

To be filled by the Reporting Manager

Annual Performance Dialogue Review Period Name : XYZ 01 April 2009 to 31 March 2010 Emp Location : Date of joining : KPA March 17,2008 Assam Band : Band I Reporting Manager : ABC No : 1234 Function : Reviewing Manager : DEF Weightage Rating Designation : Senior Executive Marketing Operations

Manufacture of numbers Measurement criteria Ensure 100% numbers are manufactured and configured in IN

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All the MSISDN that has been manufactured in U-VISION, the profile are being successfully created in HLR Self Assessment Comments & IN ,i.e , after MSISDN-SIM pairing is done in U-VISION , simultaneous configuration is done in HLR & IN . Marketing: Launched SMS campaign through chordiant .After the launch of Chordiant ,the number of campaigns has increased . JAN-196, FEB-344 Saranga has consistently performed in manufacturing of numbers without error. Audit mechanism post Reporting Manager Comments KPA manufacturing in IN, BSCS and U-Vision is the one of the initiative which saranga has incorporated in the system to ensure error free manufacturing. He is consistently able to increase camapigns but require more intelligence to improvise the conversions. Weightage Rating

U Vision to HLR Audit Audit of Demographic Details

25

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Measurement 100% Reconciliation of activate base in U Vision to HLR. Daily Audit and MIS criteria Self Assessment Comments Reporting Manager Comments KPA Measurement criteria Self Daily basis reconcilation audit of active base in U-VISION & HLR is done. Marketing: Analysis of campaigns Assessment done monthly Comments Saranga has ensured activation of numbers within defined TAT through audit mechanism. U-Vision and Reporting HLR audit has ensured all SMS triggered numbers are activated and customer are able to use services. Manager Needed to focus on the authentication of SIMs pre manufacturing. Regularly analysing of campaign to Comments ensure the maximum conversion with decrease cost/sub KPA Weightage Rating 100% Activation of all SIM Delivered to be ensured and reported on a daily 10 basis Weightage Rating Audit mecahinism post activation has ensured Daily basis reconcilation audit of active base in U-VISION & HLR is done. Marketing: Configured RA Offers

NMS Measurement Weekly reporting of Number utilization criteria Self

20

NMS tracker is prepared to capture the utilised, reserved & unutilised MSISDN for each series & it is Assessment reported Marketing: Regular Informatory campaigns send to retailers & customers Comments Reporting Manager Comments KPA Number management and allocation of numbers has been found satisfactory. Should have worked on publishing daily dashboard on the utilization part. Also needed focus on re-cycling numbers process. Providing regular information of new launches to trade & customers Weightage Rating

UAT Measurement criteria 0% Error for new product roll out

10

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Self Assessment Comments Reporting Manager Comments KPA

For the new products UAT had been done & the poducts had rolled out with 0% Error Marketing: Experiment undertaken to send SMS verbiage in local language(English text) & free minute offers in seconds

UAT of new SUKs and roll out. Initiative for Improvement of process relating to activation. New initiative taken in respect of using different regional dialects sms to enhance the productivity. Weightage Rating

Automation/Improvement of Process Measurement Atleast two process improvement or automation with Sign Off criteria Self

15

The two processes(i.e new prepaid activation process & deletion of MSISDN) has been improved & both Assessment the processes has been Signed Off Marketing: Configured 121 offers Comments Reporting Manager Comments Saranga has ensured that no new procduct is rolled out without UAT. Should have initiated process to minimize activation TAT, revenue leakage.Taking care of smooth backend configuration of 121 offer through chordiant.

Progress on Development Plan

Overall Review Comments

KPA No 1 2 3 4 5 6 Total Rating Weightage 20 25 10 20 10 15 100

Reporting Manager Rating 0 0 0 0 0 0 0 Score 0 0 0 0 0 0 0

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The Reporting Manager has to fill up rating against each KPA in a scale of 0 to 5. 0 stands for Poor Performance and 5 stand for Exceptional Performance Sample filled up Copy of the Above (by Reporting Manager)

Annual Performance Dialogue Name : Location : Date of joining : KPA XYZ Assam Band : Review Period 01 April 2009 to 31 March 2010 Emp No Band I : 1234 Reporting Manager ABC Designation : Function : Reviewing Manager : Executive Marketing Operations DEF Weightage Rating

March 17,2008

Manufacture of numbers 20 4 Measurement criteria Ensure 100% numbers are manufactured and configured in IN All the MSISDN that has been manufactured in U-VISION, the profile are being successfully created Self in HLR & IN ,i.e , after MSISDN-SIM pairing is done in U-VISION , simultaneous configuration is done in HLR & IN . Marketing: Launched SMS campaign through chordiant .After the launch of Chordiant Assessment Comments ,the number of campaigns has increased . JAN-196,FEB-344 Saranga has consistently performed in manufacturing of numbers without error. Audit mechanism Reporting post manufacturing in IN, BSCS and U-Vision is the one of the initiative which saranga has incorporated in the system to ensure error free manufacturing. He is consistently able to increase Manager Comments camapigns but require more intelligence to improvise the conversions. KPA Weightage Rating

U Vision to HLR Audit Audit of Demographic Details 25 3 Measurement criteria 100% Reconciliation of activate base in U Vision to HLR. Daily Audit and MIS Self Assessment Daily basis reconcilation audit of active base in U-VISION & HLR is done. Marketing: Configured RA Comments Offers Reporting Manager Comments Audit mecahinism post activation has ensured KPA Measurement criteria Self Assessment Comments Reporting Manager Comments KPA NMS Weightage 100% Activation of all SIM Delivered to be ensured and reported on a daily basis 10 Rating 4

Daily basis reconcilation audit of active base in U-VISION & HLR is done. Marketing: Analysis of campaigns done monthly Saranga has ensured activation of numbers within defined TAT through audit mechanism. U-Vision and HLR audit has ensured all SMS triggered numbers are activated and customer are able to use services. Needed to focus on the authentication of SIMs pre manufacturing. Regularly analysing of campaign to ensure the maximum conversion with decrease cost/sub Weightage Rating 20 4

54

Measurement criteria Self Assessment Comments Reporting Manager Comments KPA UAT Measurement criteria Self Assessment Comments Reporting Manager Comments KPA

Weekly reporting of Number utilization NMS tracker is prepared to capture the utilised, reserved & unutilised MSISDN for each series & it is reported Marketing: Regular Informatory campaigns send to retailers & customers Number management and allocation of numbers has been found satisfactory. Should have worked on publishing daily dashboard on the utilization part. Also needed focus on re-cycling numbers process. Providing regular information of new launches to trade & customers Weightage Rating 10 5

0% Error for new product roll out For the new products UAT had been done & the poducts had rolled out with 0% Error Marketing: Experiment undertaken to send SMS verbiage in local language(English text) & free minute offers in seconds UAT of new SUKs and roll out. Initiative for Improvement of process relating to activation. New initiative taken in respect of using different regional dialects sms to enhance the productivity. Weightage Rating 15 4

Automation/Improvement of Process

Measurement criteria Atleast two process improvement or automation with Sign Off Self The two processes(i.e new prepaid activation process & deletion of MSISDN) has been improved & Assessment Comments both the processes has been Signed Off Marketing: Configured 121 offers Reporting Saranga has ensured that no new procduct is rolled out without UAT. Should have initiated process to minimize activation TAT, revenue leakage.Taking care of smooth backend configuration of 121 Manager Comments offer through chordiant. Progress on Development Plan Saranga was given inputs on Personality Development. Satisfactory improvement is seen in him. Overall Review Comments Saranga is a consistent and steady performer. Needs to be more aggressive and interactive in the team. He meets his expected deliverables and has the potential to improve further. Inputs required: Assertiveness - Analytics and presentation skills KPA No 1 2 3 4 5 6 Total Rating Reporting Manager Rating Score 4 80 3 75 4 40 4 80 5 50 4 60 385 Good Performance

Weightage 20 25 10 20 10 15 100

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To be filled by the employee after having feedback discussion between Employee, Reporting Manager & Reviewing Manager(in case of Mid Year Performance Review this form is not filled up)
Annual Performance Dialogue Name : Location : Date of joining : KPA Manufacture of numbers Measurement criteria Self Assessment Comments Reporting Manager Comments KPA XYZ Assam Band : Review Period 01 April 2009 to 31 March 2010 Band I Reporting Manager Emp No : ABC 1234 Designation : Function : Reviewing Manager : Senior Executive Marketing Operations DEF Weightage 20 Rating 4

March 17,2008

Ensure 100% numbers are manufactured and configured in IN All the MSISDN that has been manufactured in U-VISION, the profile are being successfully created in HLR & IN ,i.e , after MSISDN-SIM pairing is done in U-VISION , simultaneous configuration is done in HLR & IN . Marketing: Launched SMS campaign through chordiant .After the launch of Chordiant ,the number of campaigns has increased . JAN-196,FEB-344 Saranga has consistently performed in manufacturing of numbers without error. Audit mechanism post manufacturing in IN, BSCS and U-Vision is the one of the initiative which saranga has incorporated in the system to ensure error free manufacturing. He is consistently able to increase camapigns but require more intelligence to improvise the conversions. Weightage Rating 25 3

U Vision to HLR Audit Audit of Demographic Details Measurement criteria Self Assessment Comments Reporting Manager Comments KPA Measurement criteria Self Assessment Comments Reporting Manager Comments KPA NMS Measurement Weekly reporting of Number utilization

100% Reconciliation of activate base in U Vision to HLR. Daily Audit and MIS Daily basis reconcilation audit of active base in U-VISION & HLR is done. Marketing: Configured RA Offers

Audit mecahinism post activation has ensured Weightage 100% Activation of all SIM Delivered to be ensured and reported on a daily basis 10 Rating 4

Daily basis reconcilation audit of active base in U-VISION & HLR is done. Marketing: Analysis of campaigns done monthly Saranga has ensured activation of numbers within defined TAT through audit mechanism. U-Vision and HLR audit has ensured all SMS triggered numbers are activated and customer are able to use services. Needed to focus on the authentication of SIMs pre manufacturing. Regularly analysing of campaign to ensure the maximum conversion with decrease cost/sub Weightage 20 Rating 4

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criteria Self Assessment Comments Reporting Manager Comments KPA UAT Measurement criteria Self Assessment Comments Reporting Manager Comments KPA

NMS tracker is prepared to capture the utilised, reserved & unutilised MSISDN for each series & it is reported Marketing: Regular Informatory campaigns send to retailers & customers Number management and allocation of numbers has been found satisfactory. Should have worked on publishing daily dashboard on the utilization part. Also needed focus on re-cycling numbers process. Providing regular information of new launches to trade & customers Weightage Rating 10 5

0% Error for new product roll out For the new products UAT had been done & the poducts had rolled out with 0% Error Marketing: Experiment undertaken to send SMS verbiage in local language(English text) & free minute offers in seconds UAT of new SUKs and roll out. Initiative for Improvement of process relating to activation. New initiative taken in respect of using different regional dialects sms to enhance the productivity. Weightage Rating 15 4

Automation/Improvement of Process Measurement criteria Self Assessment Comments Reporting Manager Comments

Atleast two process improvement or automation with Sign Off The two processes(i.e new prepaid activation process & deletion of MSISDN) has been improved & both the processes has been Signed Off Marketing: Configured 121 offers Saranga has ensured that no new procduct is rolled out without UAT. Should have initiated process to minimize activation TAT, revenue leakage.Taking care of smooth backend configuration of 121 offer through chordiant.

Progress on Development Plan Saranga was given inputs on Personality Development. Satisfactory improvement is seen in him. Overall Review Comments Saranga is a consistent and steady performer. Needs to be more aggressive and interactive in the team. He meets his expected deliverables and has the potential to improve further. Inputs required: Assertiveness - Analytics and presentation skills KPA No 1 2 3 4 5 6 Total Rating Reporting Manager Rating Score 4 80 3 75 4 40 4 80 5 50 4 60 385 Good Performance

Weightage 20 25 10 20 10 15 100

Employee Feedback Comments

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Sample filled up Copy of the Above(by employee)

Annual Performance Dialogue Name : XYZ Location : Date of joining : KPA Manufacture of numbers Measurement criteria Assam March 17,2008 Band :

Review Period 01 April 2009 to 31 March 2010 Emp Band I No : 1234 Reporting Manager : ABC

Designation : Function : Reviewing Manager :

Senior Executive Marketing Operations DEF Weightage 20 Rating 4

Self Assessment Comments Reporting Manager Comments KPA

Ensure 100% numbers are manufactured and configured in IN All the MSISDN that has been manufactured in U-VISION, the profile are being successfully created in HLR & IN ,i.e , after MSISDN-SIM pairing is done in U-VISION , simultaneous configuration is done in HLR & IN . Marketing: Launched SMS campaign through chordiant .After the launch of Chordiant ,the number of campaigns has increased . JAN-196,FEB-344 Saranga has consistently performed in manufacturing of numbers without error. Audit mechanism post manufacturing in IN, BSCS and U-Vision is the one of the initiative which saranga has incorporated in the system to ensure error free manufacturing. He is consistently able to increase camapigns but require more intelligence to improvise the conversions. Weightage Rating 25 3

U Vision to HLR Audit Audit of Demographic Details Measurement criteria Self Assessment Comments Reporting Manager Comments KPA Measurement criteria Self Assessment Comments Reporting Manager Comments KPA NMS Measurement criteria

100% Reconciliation of activate base in U Vision to HLR. Daily Audit and MIS Daily basis reconcilation audit of active base in U-VISION & HLR is done. Marketing: Configured RA Offers

Audit mecahinism post activation has ensured Weightage Rating 100% Activation of all SIM Delivered to be ensured and reported on a daily basis 10 4 Daily basis reconcilation audit of active base in U-VISION & HLR is done. Marketing: Analysis of campaigns done monthly Saranga has ensured activation of numbers within defined TAT through audit mechanism. U-Vision and HLR audit has ensured all SMS triggered numbers are activated and customer are able to use services. Needed to focus on the authentication of SIMs pre manufacturing. Regularly analysing of campaign to ensure the maximum conversion with decrease cost/sub Weightage Rating 20 4

Weekly reporting of Number utilization

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Self Assessment Comments Reporting Manager Comments KPA UAT Measurement criteria Self Assessment Comments Reporting Manager Comments KPA

NMS tracker is prepared to capture the utilised, reserved & unutilised MSISDN for each series & it is reported Marketing: Regular Informatory campaigns send to retailers & customers Number management and allocation of numbers has been found satisfactory. Should have worked on publishing daily dashboard on the utilization part. Also needed focus on re-cycling numbers process. Providing regular information of new launches to trade & customers Weightage Rating 10 5

0% Error for new product roll out For the new products UAT had been done & the poducts had rolled out with 0% Error Marketing: Experiment undertaken to send SMS verbiage in local language(English text) & free minute offers in seconds UAT of new SUKs and roll out. Initiative for Improvement of process relating to activation. New initiative taken in respect of using different regional dialects sms to enhance the productivity. Weightage Rating 4

Automation/Improvement of Process Measurement criteria

15

Atleast two process improvement or automation with Sign Off

Self Assessment Comments

The two processes(i.e new prepaid activation process & deletion of MSISDN) has been improved & both the processes has been Signed Off Marketing: Configured 121 offers

Reporting Saranga has ensured that no new procduct is rolled out without UAT. Should have initiated process to Manager minimize activation TAT, revenue leakage.Taking care of smooth backend configuration of 121 offer Comments through chordiant. Progress on Development Plan Saranga was given inputs on Personality Development. Satisfactory improvement is seen in him. Overall Review Comments Saranga is a consistent and steady performer. Needs to be more aggressive and interactive in the team. He meets his expected deliverables and has the potential to improve further. Inputs required: - Assertiveness Analytics and presentation skills KPA No 1 2 3 4 5 6 Weightage 20 25 10 20 10 15 Reporting Manager Rating 4 3 4 4 5 4 Score 80 75 40 80 50 60

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Total 100 385 Rating Good Performance Employee Feedback Comments Satisfied with the appraical process.I will try to improve on the things mentioned

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CHAPTER 4
RATIONALE OF THE STUDY

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RATIONALE OF THE STUDY Performance Appraisal is the important aspect in the organization to evaluate the employees performance. It helps in understanding the employees work culture, involvement, and satisfaction. It helps the organization in deciding employees promotion, transfer, incentives and pay increase.

4.1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT Human Resource (or personnel) management, in the sense of getting things done through people, is an essential part of every managers responsibility, but many organizations find it advantageous to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently. People are our most valuable asset is a clich, which no member of any senior management team would disagree with. Yet, the reality for many organizations are that their people remain under valued, under trained and under utilized. The market place for talented, skilled people is competitive and expensive. Taking on new staff can be disruptive to existing employees. Also, it takes time to develop cultural awareness, product / process / organization knowledge and experience for new staff members.

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

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

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

Induction a) Induction is the technique by which a new employee is rehabilitated into the changed surroundings and introduced to the practices, policies and purposes of the organization.
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WHAT IS PERFORMANCE APPRAISAL? Performance Appraisal is defined as the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. It consists of all formal procedures used in working organizations and potential of employees. According to Flippo, Performance Appraisal is the systematic, periodic and an important rating of an employees excellence in matters pertaining to his present job and his potential for a better job.

CHARACTERISTICS 1. Performance Appraisal is a process. 2. It is the systematic examination of the strengths and weakness of an employee in terms of his job. 3. It is scientific and objective study. Formal procedures are used in the study. 4. It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a definite plan. 5. The main purpose of Performance Appraisal is to secure information necessary for making objective and correct decision in respect of an employee.

PROCESS The process of performance appraisal: 1. Establishing performance standards 2. Communicating the Standards
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3. Measuring Performance 4. Comparing the actual with the standards 5. Discussing the appraisal 6. Taking Corrective Action

LIMITATIONS 1. Errors in Rating 2. Lack of reliability 3. Negative approach 4. Multiple objectives 5. Lack of knowledge

4.5 METHODS OF PERFORMANCE APPRAISAL The foregoing list of limitations represents a formidable challenge, even considering the available battery of appraisal techniques. But attempting to avoid these pitfalls by doing away with appraisals themselves is like trying to solve the problems of life by committing suicide. The more logical task is to identify those appraisal practices that are (a) most likely to achieve a particular objective and (b) least vulnerable to the obstacles already discussed. Before relating the specific techniques to the goals of performance appraisal stated at the outset of the article, I shall briefly review each, taking them more or less in an order of increasing complexity. The best-known techniques will be treated most briefly.
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ESSAY APPRAISAL In its simplest form, this technique asks the rater to write a paragraph or more covering an individual's strengths, weaknesses, potential, and so on. In most selection situations, particularly those involving professional, sales, or managerial positions, essay appraisals from former employers, teachers, or associates carry significant weight.

GRAPHIC RATING SCALE This technique may not yield the depth of an essay appraisal, but it is more consistent and reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is he outstanding, above average, average, or unsatisfactory?) and on a variety of other factors that vary with the job but usually include personal traits like reliability and cooperation. It may also include specific performance items like oral and written communication.

FIELD REVIEW The field review is one of several techniques for doing this. A member of the personnel or central administrative staff meets with small groups of raters from each supervisory unit and goes over each employee's rating with them to (a) identify areas of inter-rater disagreement, (b) help the group arrive at a consensus, and (c) determine that each rater conceives the standards similarly. .

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FORCED-CHOICE RATING Like the field review, this technique was developed to reduce bias and establish objective standards of comparison between individuals, but it does not involve the intervention of a third party.

MANAGEMENT BY OBJECTIVES To avoid, or to deal with, the feeling that they are being judged by unfairly high standards, employees in some organizations are being asked to set - or help set their own performance goals. Within the past five or six years, MBO has become something of a fad and is familiar to most managers.

RANKING METHODS For comparative purposes, particularly when it is necessary to compare people who work for different supervisors, individual statements, ratings, or appraisal forms are not particularly useful. Instead, it is necessary to recognize that comparisons involve an overall subjective judgment to which a host of additional facts and impressions must somehow be added. There is no single form or way to do this. The best approach appears to be a ranking technique involving pooled judgment. The two most effective methods are alternation ranking and paired comparison ranking.

1. Alternation ranking: Ranking of employees from best to worst on a trait or traits is another method for evaluating employees. Since it is usually easier to distinguish between the worst
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and the best employees than to rank them, an alternation ranking method is most popular. Here subordinates to be rated are listed and the names of those not well enough to rank are crossed. Then on a form, the employee who is highest on the characteristic being measured and the one who is the lowest are indicated. Then chose the next highest and the next lowest, alternating between highest and lowest until all the employees to be rated have been ranked.

2. Paired-comparison ranking: This technique is probably just as accurate as alternation ranking and might be more so. But with large numbers of employees it becomes extremely time consuming and cumbersome. Both ranking techniques, particularly when combined with multiple rankings (i.e., when two or more people are asked to make independent rankings of the same work group and their lists are averaged), are among the best available for generating valid order-of-merit rankings for salary administration purposes.

ASSESSMENT CENTERS So far, we have been talking about assessing past performance. What about the assessment of future performance or potential? In any placement decision and even more so in promotion decisions, some prediction of future performance is necessary. How can this kind of prediction be made most validly and most fairly?

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360 DEGREE FEEDBACK Many firms have expanded the idea of upward feedback into what the call 360degree feedback. The feedback is generally used for training and development, rather than for pay increases. Most 360 Degree Feedback system contains several common features. Appropriate parties peers, supervisors, subordinates and customers, for instance complete survey, questionnaires on an individual. 360 degree feedback is also known as the multi-rater feedback, whereby ratings are not given just by the next manager up in the organizational hierarchy, but also by peers and subordinates. Appropriates customer ratings are also included, along with the element of self appraisal. Once gathered in, the assessment from the various quarters are compared with one another and the results communicated to the manager concerned. Another technique that is useful for coaching purposes is, of course, MBO. Like the critical incident method, it focuses on actual behavior and actual results, which can be discussed objectively and constructively, with little or no need for a supervisor to "play God."

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

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

Benefits of Performance Appraisals

Measures an employees performance. Helps in clarifying, defining, redefining priorities and objectives. Motivates the employee through achievement and feedback. Facilitates assessment and agreement of training needs. Helps in identification of personal strengths and weaknesses. Plays an important role in Personal career and succession planning.
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 Clarifies team roles and facilitates team building. Plays major role in organizational training needs assessment and analysis. Improves understanding and relationship between the employee and the reporting manager and also helps in resolving confusions and misunderstandings. Plays an important tool for communicating the organizations philosophies, values, aims, strategies, priorities, etc among its employees. Helps in counseling and feedback. Rating Errors in Performance Appraisals Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as 'rating errors'. These errors can seriously affect assessment results. Some of the most common rating errors are: Leniency or severity : - Leniency or severity on the part of the rater makes the assessment subjective. Subjective assessment defeats the very purpose of performance appraisal. Ratings are lenient for the following reasons: a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect poorly on his or her own worthiness. b) He/She may feel that a derogatory rating will be revealed to the rate to detriment the relations between the rater and the ratee. c) He/She may rate leniently in order to win promotions for the subordinates and therefore, indirectly increase his/her hold over him.

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Central tendency : - This occurs when employees are incorrectly rated near the average or middle of the scale. The attitude of the rater is to play safe. This safe playing attitude stems from certain doubts and anxieties, which the raters have been assessing the rates. Halo error : - A halo error takes place when one aspect of an individual's performance influences the evaluation of the entire performance of the individual. The halo error occurs when an employee who works late constantly might be rated high on productivity and quality of output as well ax on motivation. Similarly, an attractive or popular personality might be given a high overall rating. Rating employees separately on each of the performance measures and encouraging raters to guard against the halo effect are the two ways to reduce the halo effect. Rater effect : - This includes favoritism, stereotyping, and hostility. Extensively high or low score are given only to certain individuals or groups based on the rater's attitude towards them and not on actual outcomes or behaviors; sex, age, race and friendship biases are examples of this type of error. Primacy and Regency effects : - The rater's rating is heavily influenced either by behavior exhibited by the ratee during his early stage of the review period (primacy) or by the outcomes, or behavior exhibited by the ratee near the end of the review period (regency). For example, if a salesperson captures an important contract/sale just before the completion of the appraisal, the timing of the incident may inflate his or her standing, even though the overall performance of the sales person may not have been encouraging. One way of guarding against such an error is to ask the rater to consider the composite performance of the rate and not to be influenced by one incident or an achievement.
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Performance dimension order : - Two or more dimensions on a performance instrument follow each other and both describe or rotate to a similar quality. The rater rates the first dimensions accurately and then rates the second dimension to the first because of the proximity. If the dimensions had been arranged in a significantly different order, the ratings might have been different. Spillover effect : - This refers lo allowing past performance appraisal rating lo unjustifiably influence current ratings. Past ratings, good or bad, result in similar rating for current period although the demonstrated behavior docs not deserve the rating, good or bad.

4.6 ROLES IN THE PERFORMANCE APPRAISAL PROCESS

a.

Reporting Manager

Provide feedback to the reviewer / HOD on the employees behavioral traits indicated in the PMS Policy Manual Ensures that employee is aware of the performance appraisal process Address employee concerns / queries on performance rating, in consultation with the reviewer

b.

Reviewer (Reporting Managers Reporting Manager)

Discuss with the reporting managers on the behavioral traits of all the employees for whom he / she is the reviewer

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 Where required, independently assess employees for the said behavioral traits; such assessments might require collecting data directly from other relevant employees c.

HOD (In some cases, a reviewer may not be a HOD)

Presents the proposed Performance Rating for every employee of his / her function to the Normalization committee. HOD also plays the role of a normalization committee member Owns the performance rating of every employee in the department d. HR Head

Secretary to the normalization committee Assists HODs / Reporting Managers in communicating the performance rating of all the employees

e.

Normalization Committee

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

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KEY CONCEPTS IN PMS In order to understand the Performance Management System, some concepts need to be explained which play a very important role in using the PMS successfully. They are:

KPAS (KEY PERFORMANCE AREAS): The performance of an employee is largely dependent on the KPA score achieved by the employee during that particular year. Thus, it is necessary to answer a few basic questions i.e. o What are the guidelines for setting the KPAs for an employee? o How does an employee write down his KPAs for a particular financial year? o KRAs: The six Perspectives. o How is the KRA score calculated for an employee on the basis of the targets sets and targets achieved?

BEHAVIORAL TRAITS : Some of the qualitative aspects of an employees performance combined with the general behavioral traits displayed by the employee during a year constitutes his behavior traits. An employee is assigned the rating on the basis of the intensity of the behavior displayed by him. They play a very important role in the deciding the final performance rating for an employee as is even capable of shifting the rating one level upwards/downwards.

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 LEADERSHIP COMPETENCY FRAMEWORK: This competency framework is a simple and structured way to describe the elements of behaviors required to perform a role effectively. This framework also tries to assess the performance of an employee objectively.

THE PERFORMANCE RATING PROCESS: The rating process tries to explain the four different types of rating that an employee can achieve i.e. X, E, G, I & P. It also explains the criteria, which is considered for awarding any of these ratings to the employee.

PROMOTION AND RATING DISRTRIBUTION GUIDELINES: The promotion and normal distribution guidelines provide the framework within which the performance appraisal process has to work. It is very important that the HR department pays due attention to these guidelines while preparing the bell curves for various functions and the consolidated bell curve for all the functions. These guidelines also help in deciding upon the promotion cases in a year.

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PERFORMANCE RATING PROCESS The Performance Dialogue has a NEW scale this year PIGEX which will be used to evaluate and assess team overall performance. It is our endeavor to create a high performance culture which supports the achievement of individual, team and organizational goals. Rating Scale & Descriptors PIGEX SCALE X - Exceptional Performance: Shows outstanding performance against goals. This person is performing exceptionally well above the expectations of the role. Score 460 and above E - Exceeding Expectations: Regularly exceeds goals. This is an individual who regularly exceeds the expectations of the role. Score 400 to 459 G - Good Performance: All goals met and occasionally exceeded. This is an individual who requires minimum guidance. Score 300 to 399. I - Improvement Required: Most, but not all, goals achieved. This person may need guidance and support to perform adequately in the role. Score 200 to 299 P - Poor Performance: Many Key goals not met. Performing well below expectations and requirements of the job. Low level of performance is not due to

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lack of clarity, opportunity or development. This level of performance is not acceptable and signals real improvement is needed. Score 0 to199 Ratings are a function of calibration at the function / circle / OpCo levels. The distribution curve for the 2009-10 Performance Dialogue cycle will be as below: X 5% of employees E 15% of employees G 65% of employees I 10% of employees P 5% of employees

Exceptional Performance (X) Performs all areas Achieves a final score greater than or equal to 460 Consistently targets Is proactive Spots and anticipates problems, implements solutions Sees and exploits opportunities Delivers ahead of time delivers on stretch consistently and substantially above expectations in

Exceeding Expectations (E) Performs above expectations in all areas Achieves final score between 400-459 Versatile in his/ her area of operation Develops creative solutions and require little / minimal supervision Sets examples for others Take ownership of own development Coaches others
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Sees

the

wider

picture-impacts Demonstrates business initiative Is self motivated

across business business Seen as role model by others recognized as exceptional by other functions as well Motivates others to solve problems Develops others Provides open and honest feedback Able to establish and lead crossfunctional teams

Focuses on whats good for the Supportive team player Leads own team very effectively Demonstrate functional initiative

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CHAPTER 5
OBJECTIVES OF THE STUDY

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5.1 OBJECTIVES OF THE STUDY To carry out the study of Vodafone Essar Spacetel Limited, the following objectives were framed 1. Identification of the technique of performance appraisal followed in Vodafone Essar Spacetel Limited. 2. Employee attitude towards the present appraisal system. 3. Review of the current appraisal system in order to a. b. Enhance productivity Attain global standards

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

5.2 RESEARCH METHODOLOGY

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

(1) Explorative Research Design: Explorative studies are undertaken with a view to know more about the problem. These studies help in a proper definition of the problem, and development of specific hypothesis is to be tested later by more conclusive research designs. Its basic purpose is to identify factors underlying a problem and to determine which one of them need to be further researched by using rigorous conclusive research designs.

(2) Conclusive Research Design: Conclusive Research Studies are more formal in nature and are conducted with a view to eliciting more precise information for purpose of making marketing decisions. These studies can be either: a) Descriptive or b) Experimental

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Thus, it was mix of both the tools of Research Design that is, Explorative as well as Conclusive.

SAMPLING PLAN: Sample Size = 50 Employees Sample Area = Vodafone Essar Spacetel Limited,Guwahati Duration = One Month.

DATA COLLECTION:

Data Sources: i. ii. iii. iv. Secondary Data through Internet Primary Data through Questionnaire Contact Method Personal Interaction

SCOPE OF THE SURVEY 1. 2. 3. 4. 5. Employees Opinion as to the Purpose of Performance Appraisal Performance standards / yardsticks Awareness of technique of Performance Appraisal being followed at Vodafone Essar Spacetel Limited among Employees Number of Employees being appraised during their service period Employees opinion as to the present appraisal system Employee perception as to the frequency of appraisal
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6. 7. 8. 9.

If continuous appraisal what should be the gap between two appraisal period How Performance Appraisal affects the productivity of the employees Who should do the appraisal? Does appraisal help in polishing skills and performance area?

10. Does personal bias creeps-in while appraising an employee 11. If given a chance, would employees like to review the current appraisal technique? 12. Appropriate method of conducting the performance appraisal 13. Does performance appraisal leads to identification of hidden potential

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5.3 SAMPLE QUESTIONARE FORM 1. Do you feel there is a necessity to carry out performance appraisal of employees; a) Yes b) No

2. Are you aware of the performance appraisal techniques being followed in Vodafone Essar Spacetel Limited ; a) Yes b) No

3.Have you ever been apprised during your service period; a) Yes b) No

4. What is your opinion of the present appraisal system ; a) Fully Satisfied b) Satisfied c) Cant Say 5. Should the appraisal process be: a) Once during the service period c) Never 6. d) Cant Say b) Continuous d) Dissatisfied

What in your opinion should be the time period of conducting continuous b) Half Yearly c) Yearly

Appraisal? a) Quarterly Any specific reason

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7. Does Performance Appraisal helps in improving the productivity of the employees? a) Yes 8. b) No c) No idea

Who in your opinion should appraise the employee? b) Peer c) Subordinates d) Self Appraisal

a) Superior e) Consultant

f) All of the above

9. Does the appraisal system helps in polishing the skills or performance area? a) Yes b) No c) Somewhat

10. Do you think personal bias creeps in while appraising an individual? a) Yes 11. b) No

If given a chance or an opportunity would you like that the current appraisal b) No c) Cant Say

procedure should be reviewed? a) Yes 12.

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

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d) Setting specific measurable goals with each employee and periodically reviewing the progress made. e) Reviewing performance through case studies, presentations, role playing, etc. for future performance. f) Receiving feedback from people whose views are considered helpful and relevant including the appraise himself. 13. Does Performance Appraisal leads to identification of hidden potential of the employees? a) Yes b) No

14. Suggestions and views ... ... ...

Thank you,

Date __ / __ / _____

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CHAPTER 6
FINDINGS AND ANALYSIS

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FINDINGS AND ANALYSIS

Employees

Opinion

as

to

the

Purpose

of

Performance

Appraisal

Performance standards / yardsticks Table 6.1: Employees Opinion as to the Purpose of Performance Appraisal Performance standards / yardsticks

Options Yes No

Response 42 08

Awareness of technique of Performance Appraisal being followed at Vodafone Essar Spacetel Limited among Employees Table 6.2: Awareness of technique of Performance Appraisal being followed at Vodafone Essar Spacetel Limited among Employees

Response Yes No 36 14

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Number of Employees being appraised during their service period Table 6.3: Number of Employees being appraised during their service period

Options Yes No

Response 50 0

Employees opinion as to the present appraisal system Table 6.4: Employees opinion as to the present appraisal system

Options Fully Satisfied Satisfied Cant Say Dissatisfied

Responses (in %) 2 24 44 30

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Employee perception as to the frequency of appraisal Table 6.5: Employee perception as to the frequency of appraisal

Options Once During The Service Period Continuous Never Cant Say

Response (in %) 2 92 0 6

If continuous appraisal what should be the gap between two appraisal periods Table 6.6 : gap between two appraisal periods

Options Quarterly Half Yearly Yearly

Response (in %) 20 44 36

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How Performance Appraisal affects the productivity of the employees Table 6.7: Performance Appraisal affects the productivity of the

employees

+ Feedback - Feedback Neutral

38 12 -

Who should do the appraisal? Table 6.8: Concern person to do the appraisal

Options Superior Peer Subordinate Self Appraisal Consultant All of the above Superior + Peer

Response ( in % ) 24 0 0 8 4 48 16

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Does appraisal help in polishing skills and performance area? Table 6.9 : help in polishing skills and performance area

Options Yes No Somewhat

Response ( in % ) 74 10 16

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

Does personal bias creeps-in while appraising an employee Table 6.10: personal bias creeps-in while appraising an employee

Options Yes No

Response ( in % ) 82 18

In the process of appraising, both the parties are human being, that is, the one who is being apprised and the other who is appraising. Thus, there bound to be subjectivity involved, be it an objective way of appraising.

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Thus, when asked from among the sample size of 50 respondents, as huge as 82 % responded 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.

If given a chance, would employees like to review the current appraisal technique? Table 6.11: would employees like to review the current appraisal technique

Options Yes No Cant Say

Response ( in % ) 72 4 24

Appropriate method of conducting the performance appraisal Table 6.12: Appropriate method of conducting the performance appraisal

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

Response ( in % ) 12 0 20 58 4 6

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Does performance appraisal leads to identification of hidden potential Table 6.13: performance appraisal leads to identification of hidden potential

Options Yes No

Response ( in % ) 96 4

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CHAPTER 7
LIMITATIONS OF THE STUDY

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LIMITATIONS OF THE STUDY A few limitations and constraints came in way of conducting the present study, under which the researcher had to work are as follows:

Although all attempts were made to make this an objective study, biases on the part of respondents might have resulted in some subjectivity. Though, no effort was spared to make the study most accurate and useful, the sample Size selected for the same may not be the true representative of the Company, resulting in biased results. This being the maiden experience of the researcher of conducting study such as this, the possibility of better results, using deeper statistical techniques in analyzing and interpreting data may not be ruled out.

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SUGGESTIONS AND CONCLUSION After having analyzed the data, it was observed that practically there was no appraisal in the organization. To be an effective tool, it has to be on the continuous basis. This is the thing that has been mentioned time and again in the report, as, in the absence of continuity, it becomes a redundant exercise. Before actually deciding drafting what should be the kind of appraisal the following things should be taken care of: 1. The very concept of performance appraisal should be marketed throughout the

organization. Unless this is done, people would not accept it, be it how important to the organization. 2. To market such a concept, it should not start at bottom, instead it should be

started by the initiative of the top management. This would help in percolating down the concept to the advantage of all, which includes the top management as well as those below them. This means that the top management has to take a welcoming and positive approach towards the change that is intended to be brought. 3. Further, at the time of confirmation also, the appraisal form should not lead to

duplication of any information. Instead, detailed appraisal of the employees work must be done which must incorporates both the work related as well as the other personal attributes that are important for work performance.

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4.

It should be noted that the appraisal form for each job position should be

different as each job has different knowledge and skill requirements. There should not be a common appraisal form for every job position in the organization. 5. The job and role expected from the employees should be decided well in

advance and that too with the consensus with them. 6. A neutral panel of people should do the appraisal and to avoid subjectivity to a

marked extent, objective methods should be employed having quantifiable data. 7. 8. The time period for conducting the appraisal should be revised, so that the Transparency into the system should be ensured through the discussion about

exercise becomes a continuous phenomenon. the employees performance with the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that. Ideally in the present day scenario, appraisal should be done, taking the views of all the concerned parties who have some bearing on the employee. But, since a change in the system is required, it cannot be a drastic one. It ought to be gradual and a change in the mindset of both the employees and the head is required.

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REFERENCES 1. 2. 3. 4. Vodafone Essar Spacetel Limited Personal Guide www.vodafone.in www.mbaprojectsonline.com www.India-cellular.com

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