INTRODUCTION TO INSURANCE SECTOR

Insurance has a long history in India. Life

Insurance in its current form was
introduced in 1818 when Oriental Life
Insurance Company began its operations
in India. General Insurance was however a
comparatively late entrant in 1850 when
Triton Insurance company set up its base in
Kolkata.
 INTRODUCTION TO BAJAJ ALLIANZ
Bajaj Allianz General Insurance Company Limited is
a joint venture between Bajaj Auto Limited and
Allianz AG of Germany. Both enjoy a reputation of
expertise, stability and strength. Bajaj Allianz
General Insurance received the Insurance
Regulatory and Development Authority (IRDA)
certificate of Registration (R3) on May 2nd, 2001 to
conduct General Insurance business (including
Health Insurance business) in India. The Company
has an authorized and paid up capital of Rs.110
Crores. Bajaj Auto holds 74% and Allianz holds the
remaining 26%. AG, Germany.
 INTRODUCTION TO PERFORMANCE APPRAISAL

Performance appraisal is a systematic and

objective way of judging the relative worth or
ability of an employee in performing the task.
Performance appraisal helps to identify those
who are performing their assigned tasks and
those who are not and the reasons for such
performance. Performance Appraisal (PA) is
normally done by senior executives and the
senior manager in the organization to appraise
the employee for their performance and also to
find out difficulties while meeting their goals.
PERFORMANCE APPRAISAL BY BAJAJ ALLIANZ

The first step in the process of performance appraisal is the

setting up of the standard which will be used to as the base
to compare the actual performance of the employees.

• Communicating the standards

• Measuring the actual performance
• Comparing the actual with the desired performance
• Discussing results
• Decision making
 BENEFITS OF PERFORMANCE APPRAISAL

• Gaining a better understanding of their role.

• Understanding more clearly how and where they fit in within the wider
picture.
• A better understanding of how performance is assessed and monitored.
• Getting an insight into how their performance is perceived.
• Improving understanding of their strengths and weaknesses and
developmental needs.
• Identifying ways in which they can improve performance.
• Providing an opportunity to discuss and clarify developmental and
training needs.
• Understanding and agreeing their objectives for the next year.
• An opportunity to discuss career direction and prospects
• Benefits to the line manager /supervisor/ team leader.
 OBJECTIVES OF THE STUDY
 To find out present performance appraisal system used in
the company.
 To find about the employees views for the system adopted
by the company to appraise their performance.
 To know about the working scheme of the company.
 To suggest some measures for improving the methods to
appraise the performance of the workers.
 To study the process involved in Performance Appraisal.
 To know the Indian Trends in Performance Appraisal.
 To know the problems associated with the Performance
Appraisal
Sample size
This refers to the number of items to be selected from the
universe to constitute a sample. This is a major problem before
the research. The size of sampling should neither be excessively
large not to small, it should be optimum. This size of population
must be kept in view for this also limits the sample size. Sample
size in this research is 20.

Sampling units and area

A decision has to be taken concerning a sampling unit before

selecting a sample. Sampling units may be geographical and
such a state district, village etc. So in this research sampling
unit is Ambala area.
 LIMITATION OF THE STUDY
• Even though the survey was conducted for the employee performance
view the study does not match with the entire population in the
company.
• Because of time constraints, the sample size is restricted to 20, which
may not reflect the opinion of the entire population in the company.
• Since study was restricted to samples. Sample may behave or give
different opinions at different times because of their psychological
temperament. This will affect the study.
• Data could be collected from only 20 respondents as they were busy
and could not respond so well to the questionnaires.
• Most of the organization hesitates to give confidential HR information
which is needed for the study like expectation in salary, periodical
incremental percentage.
 Q:-1. Categorization of staff (Please tick to which
you belong)?
Option No. Of
Respondent 30
Executive Staff 2 25
20
15
Non-Executive 5 10
5
staff
0

Sub-staff 5
Others 8
Total 20

RESPONDENT: - 20% of the respondent is of Executive staff. 26% of the

respondent is of the Non- executive staff as well as (26%) Sub-staff and rest
28% of the respondent are of other staff.
 Q:-2. Do you have a performance Appraisal system
in your organization?
Option No. of Respondent

Yes 20

No 0

Total 20
Yes
No

INTERPRETATION:- 100% people are agreed that there is a

performance appraisal system in their organization.
 Q:-3. Is the Performance Appraisal process
user friendly? 90
Option No. of Respondents
80
Yes 16 70

No 4 60
50
Total 20
40
30
20
10
0
Yes No
INTERPRETTION:- 80% respondent are agreed that performance appraisal
process is user friendly and 20% are say that performance appraisal process is
not user friendly.
 Q:-4. Is Performance Appraisal conducted on
time?
Option No. of Respondents

Yes 12

No 8

Total 20

Yes
No

INTERPRETATION:- 60% say that performance appraisal is conducted on time

and 40% are say that performance appraisal is not conducted on time.
Q:-5. After how much time the Performance
appraisal system is conducted?
Option No. Of respondent

Monthly 1 40
35
Quarterly 8
30
Half yearly 1 25
Annually 4 20
15
As and when required 6
10
Total 20 5
0

INTERPRETATION:-Mostly the performance appraisal system is conducted

on quarterly basis.
 Q:-6. How often the performance appraisal system
gives the result accuracy to the employee?
Option No. Of respondent 60
Always 10

Some time 6 50
Rare 3
40
Never 1

Total 20
30

20

10

INTERPRETATION: - 10% says Always,

6% says Sometime, 3% say Rare, and 1% 0
say never. Always
Some time
Rare Never
Q:-7. Does Performance Appraisal process assess
fairly?
Option No. of Respondents

Yes 16

No 4

Total 20

Yes
No

INTERPRETATION: - 80% of the respondents agreed to above statement and

20% of the respondents disagreed to the statement
Q:-8. In your opinion which is the main
Objectives of Performance Appraisal?
Option No. Of Respondent
Sales
For Promotion 8

For training and 5

development 10%
To confirm the services 3
10%
of the employees
To let the employees 2 44%
know where they stand
To determine whether 2
16%
HR programmes have
been effective or not
Total 20 20%

Respondent:- Most of the time the main objective is for

promotion.
Q:-9. Is Performance Appraisal process
simple to understand?
Option No. of Respondents

Yes 17

No 3

Total 20

Yes
No

INTERPRETATION: - 90% of the respondents agreed to the above statement

and 10% of the respondents disagreed to the statements.
 Q:-10. Which method is most frequently adopted for
conducted performance appraisal system?

Option No. Of Respondent

Sales
Past oriented method 9
Past oriented method
Future oriented method 11
Future oriented method
Total 20

45%

55%

INTERPRETATION:- The above data indicates

that 45% respondent say that past oriented
method is adopt and 55% say that Future oriented
is adopt to conduct the performance appraisal
system.
Q:-11. What other process can be included making
the appraisal process much better?

Options No. of Respondents 40

35
360 degree Method 8
30
MBO 4 25
Critical Incident Method 3
20
15
Web based appraisal system 5 10
Total 20 5
0

INTERPRETATION: - The above data

indicates that equal percentage of
respondent need to add MBO as well as
Web based appraisal system in their
organization i.e. 40% and the rest 20% of
other needs to include Critical incident
Method.
Q:-12. What is the mode of Performance
Appraisal system?
25
Option No. Of Respondent

Formal 20 20
Informal 0

Total 20 15

10

0
Formal Informal

INTERPRETATION: - 100%of the respondent says that there is a formal

mode of Performance Appraisal system.
 Q:-13. Up to what extent you are satisfied with
current appraisal system?

Option No. Of respondent

Highly satisfied 8

Satisfied 6 5%
Neither satisfied Nor 5
dissatisfied
Dissatisfied 1
25% 40%
Highly dissatisfied -

Total 20

INTERPRETATION:- 40% are Highly 30%

satisfied, 30% are satisfied, 25% are not
satisfied, 5% are not dissatisfied.
 Q:-14. If not then what are the areas need to
be improved?

Option No. of Respondents

Sales
Time 2
Time Process
Process 4

Total 6

34%

INTERPRETATION: -The above data 66%

predicts that 34% of the respondent need
to change the duration of PA system and
rest of the 13 respondents i.e. 66% need to
change the process of performance
appraisal.
 Q:-15. Do you think Performance Appraisal is necessary
to conduct?
Option No. Of Respondent

Yes 18

No 2

Total 20

Yes
No

INTERPRETATION: - 96% of the

respondent are agreed to this statement
and rest 4% are disagree with this
statement
 Q:-16. How often the company provide any training
if the performance of the employee is not up to the
mark?
Option No. Of Respondent

Always 8 40
Sometime 6 35
Rare 4 30
Never 2 25
Total 20 20
15
10
INTERPRETATION:-92% of the 5
respondent say that the company provides 0
training, if the performance of the employees
is not up to the mark, 8% respondent say
that the company does not provide training
if the performance of the employees is not up
to the mark.
 Q:-17. In your opinion how is overall Performance
Appraisal system in “BAJAJ ALLIANZ LIFE
INSURANCE”?
Option No. of Respondents

Excellent 10

Good 6

Average 4

Poor -
Excellent
Total 20
Good
Average
Poor

INTERPRETATION:- The above data predicts that the

present appraisal system status in the company where 50%
of the employees responded to be excellent, 30% respondent
to be good, and 20% responded as average i.e. just satisfied.
Thus the majority of respondents have viewed their opinion
that the present appraisal system is good.
Findings
• The company has separate appraisal system for each level of employees.
• On an average 85% of the employees in an organization are motivated by performance
appraisal.
• Performance appraisal is surly a good indicator for the training and developmental need
of the employees.
• Performance appraisal system is categorized on the basis of their staff.
• The company has always conduct the performance appraisal quarterly, yearly, half
yearly, as and when required and monthly.
• Most of the time performance appraisal system gives the result accuracy to the
employee.
• Future oriented method is most frequently used by the company as compared by the
Past oriented method.
• On an average 96% employees in organization are said that performance appraisal
system is very necessary to conduct.
• Most of the companies are provide training to their employee if their work is not up to
mark.
• Awareness sessions about the performance appraisal (objectives and importance) are
conducted some times in the organization. It is normally done for new employees.
CONCLUSION
Most of the time Performance Appraisal (PA) for determining compensation
increases, training need identification and for promotions. The Performance
Appraisal has delinked itself from being an instrument of evaluating performance
in the organization. Application of performance and bringing about better
performance management practices that enables organization to improve their
performance and bring in a performance driven culture is the need of the hour
rather performance appraisal only.
• No Doubt without the commitment of the top management it would just be very
difficult to bring this sort of change. This in fact calls for a cultural change where
in emphasis is not only given to the Outcome or the end result but also on the
process and effort made to achieve the result. While discussing of the process &
effort we need to focus on the leadership style, his approach of consulting
others, his ability to learn, his approach as a team member, his effort in planning
his days and week, and his overall orientation for subordinates development. All
this really calls for a different ball games wherein the concerned supervisors are
able to emphasize with his subordinates and is really above to understand his
emotional world.
SUGGESTIONS
• Though the employees feels that the company is fair in its appraisal process but still has
lot to in terms of making the appraisal process effective so that it results in enhanced
employee satisfaction and helps in retaining key employees of the company.
• The project leaders are dissatisfied with the way responsibilities are distributed. The
company needs to works in this area and bring more clarity in the definitions of roles
and responsibilities.
• The Management should design training and development programs, career plans for
their employees’ on the basis of skills, knowledge needs.
• Appreciate employees’ on the basis of employees’ work performance by Promotion or
increment in the salaries.
• The performance culture of the company is another area where needs to be done to
improve the training regimen so that involvement of the employees is enhanced which
finally would build the morale and productivity would be enhanced.
• Employees have doubts about the rewards and feel that the system is not too
transparent. This in the long run unattended would reduce the morale and may lead to
attrition.
ANY QUERY?