Description
Bharat Sanchar Nigam Limited is an Indian state-owned telecommunications company headquartered in New Delhi, India. It is the largest provider of fixed telephony and fourth largest mobile telephony provider in India, and is also a provider of broadband services.
Research reports of Performance Appraisal System of Bharat Sanchar Nigam Limited
TABLE OF CONTENTS
1. 2. 3. 4.
Company profile Introduction Organisation structure Hrm strategy ? ? ? ? ? Recruitment & selection Training Wage & salary Motivation at work Leaves
5. 6. 7. 8. 9.
Performance appraisal Research methodology Analysis and interpretation of data with results Conclusion and recommendation References
COMPANY PROFILE
Type Industry Founded
State-owned enterprise Telecommunications Incorporated 2000
Headquarters New Delhi, India Key people R.K. Upadhyay (Chairman & MD) Fixedline and mobile telephony,Internet services, digital television, IPTV
Products
Owner(s) Employees Website
Government of India 281,635 (March 2011) www.new.bsnl.co.in TABLE - 1
BSNL Registered Office
Bharat Sanchar Bhavan Harish Chandra Mathur Lane Janpath, New Delhi-110 001 Bharat Sanchar Bhavan Harish Chandra Mathur Lane Janpath, New Delhi-110 001
BSNL Corporate Office
INTRODUCTION
Bharat Sanchar Nigam Limited (BSNL) was incorporated on 15th September 2000. It took over the business of providing of telecom services and network management from the erstwhile Central Government Departments of Telecom Services (DTS) and Telecom Operations (DTO), with effect from 1st October„2000 on going concern basis. It is one of the largest & leading public sector units providing comprehensive range of telecom services in India. It is the largest provider of fixed telephony and fourth largest mobile telephony provider in India, and is also a provider of broadband services. However, in recent years the company's revenue and market share plunged into heavy losses due to intense competition in Indian telecommunications sector. BSNL is India's oldest and largest communication service provider (CSP). It had a customer base of 95 million as of June 2011. It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi, which are managed by Mahanagar Telephone Nigam (MTNL). BSNL has installed Quality Telecom Network in the country & now focusing on improving it, expanding the network, introducing new telecom services with ICT applications in villages & winning customer's confidence. Today, it has about 43.74 million line basic telephone capacity, 8.83 million WLL capacity, 72.60 million GSM capacity, 37,885 fixed exchanges, 68,162 GSM BTSs, 12,071 CDMA Towers, 197 Satellite Stations, 6,86,644 RKm. of OFC, 50,430 RKm. of microwave network connecting 623 districts, 7330 cities/towns & 5.8 lakhs villages . BSNL is the only service provider, making focused efforts & planned initiatives to bridge the rural-urban digital divide in ICT sector. In fact there is no telecom operator in the country to beat its reach with its wide network giving services in every nook & corner of the country & operates across India except New Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier or North-Eastern regions of the country, BSNL serves its customers with a wide bouquet of telecom services namely Wireline, CDMA mobile, GSM mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP, IN Services, FTTH, etc. BSNL is numero uno of India in all services in its license area. The company offers wide ranging & most transparent tariff schemes designed to suit every customer. BSNL has 90.09 million cellular & 5.06 million WLL customers as on 31.07.2011. 3G Facility has been given to all 2G connections of BSNL. In basic services, BSNL is miles ahead of its
rivals, with 24.58 million wireline phone subscribers i.e. 71.93% share of the wireline subscriber base. BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure that provides convergent services like voice, data & video through the same Backbone & Broadband Access Network. At present there are 8.09 million broadband customers. The company has vast experience in planning, installation, network integration & maintenance of switching & transmission networks & also has a world class ISO 9000 certified Telecom Training Institute. During the 2010-11, turnover of BSNL is around Rs. 29,700 Crores
SERVICES
BSNL provides almost every telecom service in India. Following are the main telecom services provided by BSNL:
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Universal Telecom Services: Fixed wireline services and landline in local loop (WLL) using CDMA Technology called bfone and Tarang respectively. As of June 30, 2010, BSNL had 75% market share of fixed lines.
BSNL Mobile
Prepaid Mobile ? Cellular Mobile Telephone Services: BSNL is major provider of Cellular Mobile Telephone services using GSM platform under the brand name Cellone & Excel (BSNL Mobile). As of June 30, 2010 BSNL has 13.50% share of mobile telephony in the country. ? WLL-CDMA Telephone Services: BSNL's WLL (Wireless in Local Loop) service is a service giving both fixed line telephony & Mobile telephony.
BSNL Broadband ? Internet: BSNL provides Internet access services through dial-up connection (as Sancharnet through 2009) as Prepaid, (NetOne) as Postpaid and ADSL broadband (BSNL Broadband). BSNL held 55.76% of the market share with reported subscriber base of 9.19 million Internet subscribers with 7.79% of growth at the end of March 2010. Top 12 Dialup Service providers, based on the subscriber base, It Also Provides Online Games via Its Games on Demand (GOD) ? Intelligent Network (IN): BSNL offers value-added services, such as Free Phone Service (FPH), India Telephone Card (Prepaid card), Account Card Calling (ACC), Virtual Private Network (VPN), Tele-voting, Premium Rae Service (PRM), Universal Access Number (UAN). ? 3G:BSNL offers the '3G' or the'3rd Generation' services which includes facilities like video calling, mobile broadband, live TV, 3G Video portal, streaming services like online full length movies and video on demand etc. ? IPTV: BSNL also offers the 'Internet Protocol Television' facility which enables watch television through internet.
? FTTH: Fibre To The Home facility that offers a higher bandwidth for data transfer. This idea was proposed on post-December 2009 ? Helpdesk: BSNL's Helpdesk (Helpdesk) provide help desk support to their customers for their services. ? VVoIP: BSNL, along with Sai Info system - an Information and Communication Technologies (ICTs) provider - has launched Voice and Video Over Internet Protocol (VVoIP). This will allow to make audio as well as video calls to any landline, mobile, or IP phone anywhere in the world, provided that the requisite video phone equipment is available at both ends.
ORGANISATION STRUCTURE
GENERAL MANAGER OF TELECOM DISTRICT
DGM (I)
DGM (II)
DGM (III)
AGM (I) AGM (II) AGM (I) AGM (II) DES
CAO (I)
CAO (II)
SDE (I)
SDE (II)
AO (I)
AO (II)
AO (I)
AO (II)
JTO (I)
JTO (II)
JAO (I)
JAO (II)
PM
TTA
(SR).TOS
RM
SR.TOAS
Introduction
HRM - What is Human Resource Management ("HRM")? You often see phrases like these in the annual reports of major businesses:
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“Our people are our greatest asset” “Nothing is more important than our employees”
You see them so often that it is tempting to treat them as clichés. However, behind the cliché lies an important truth, which is that the human element plays a major part in the success of every business. Effective human resource management has become more important in recent times. Here are some reasons why:
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Most businesses now provide services rather than produce goods – people are the critical resource in the quality and customer service level of any service business. Competitiveness requires a business to be efficient and productive – this is difficult unless the workforce is well motivated, has the right skills and is effectively organised.
As a result, if a business is to be successful and achieve its objectives, then it needs to manage its human resources effectively. So step forward “human resource management”! Human resource management is usually shortened to “HRM”. It is defined by the CIPD as: “The design, implementation and maintenance of strategies to manage people for optimum business performance” In other words, HRM is about how people are managed by a business in order to meet the strategic objectives of the business. The functional objectives set for HRM need to be consistent with the corporate objectives. The key is to remember that HRM is a strategic approach. HRM uses a variety of tools to help meet the strategic needs of the business, each of which needs together in an integrated way. The key tools are:
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Recruitment & selection Training & development Rewarding and motivating staff Roles and responsibilities (organisational structures)
HRM - Objectives of HRM
Whilst the precise HR objectives will vary from business to business and industry to industry, the following are commonly seen as important HR objectives
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Objective Ensure resources employed effectively
HR Actions human Pay rates should be competitive but acceptable staff are Achieve staff cost- Minimise Measure returns on investment in training not excessive utilisation turnover
jobs have suitable, Make effective use of Ensure workforce potential Avoid too many under-utilised Make best use of employees skills
achievable workloads or over-stretched staff
unnecessary and costly industrial disputes Maintain good Avoid employer / employee Timely and honest communication with employees and their representatives relations Sensitive handling or potential problems with employees (e.g. dismissal, redundancy, major changes in the business) Comply with all relevant employment legislation
HRM - Hard v Soft HRM There are a variety of ways to approach the management of HR in a business. The business textbooks like to describe two broad approaches to HRM which are explained further below:
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“Hard” HR “Soft” HR Soft HR Management Treats employees as the most important resource in the business and a source of competitive advantage Employees are treated as individuals and their needs are planned accordingly
Hard HR Management Treats employees simply as a resource of the business (like machinery & buildings) Strong link with corporate business planning – what resources do we need, how do we get them and how much will they cost
Focus of HRM: identify workforce needs of Focus of HRM: concentrate on the needs of the business and recruit & manage employees – their roles, rewards, motivation accordingly (hiring, moving and firing) etc Key features Key features
Short-term changes in employee numbers Strategic focus on longer-term workforce (recruitment, redundancy) planning Minimal communication, from the top down Strong and regular two-way communication
Pay – enough to recruit and retain enough Competitive pay structure, with suitable staff (e.g. minimum wage) performance-related rewards (e.g. profit share, share options) Little empowerment or delegation Employees are empowered and encouraged to seek delegation and take responsibility
Appraisal systems focused on making Appraisal systems focused on identifying and judgements (good and bad) about staff addressing training and other employee development needs Taller organisational structures Suits autocratic leadership style Flatter organisational structures Suits democratic leadership style
RECRUITMENT & SELECTION
The Recruitment Process For most businesses, large or small, the task of identifying what work needs doing and who should do it is a continuous challenge.
It is rare that a business of any size operates for long without having to recruit or remove employees. For example, consider why a business might need to recruit staff:
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Business expansion due to o Increasing sales of existing products o Developing new products o Entering new markets Existing employees leave: o To work with competitors or other local employers o Due to factors such as retirement, sick leave, maternity leave Business needs employees with new skills Business is relocating – and not all of existing workforce want to move to new location
Internal and external recruitment A manager can recruit in two different ways:
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Internal recruitment is when the business looks to fill the vacancy from within its existing workforce External recruitment is when the business looks to fill the vacancy from any suitable applicant outside the business
Of course, the option to use BOTH internal and external recruitment can be used. This is often the case for senior management appointments.
Internal Recruitment
Advantages Cheaper and quicker to recruit
Disadvantages Limits the number of potential applicants
People already familiar with the business No new ideas can be introduced from and how it operates outside Provides opportunities for promotion May cause resentment with in the business – can be motivating candidates not appointed amongst
Business already knows the strengths and Creates another vacancy which needs weaknesses of candidates to be filled External Recruitment Outside people bring in new ideas Longer process Larger pool of workers from which to More expensive process due to find the best candidate advertising and interviews required People have a wider range of experience Selection process may not be effective enough to reveal the best candidate The four most popular ways of recruiting externally are:
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Job centres – Government agencies to help the unemployed find jobs or get training Job advertisements - the most common form of external recruitment. Where a business chooses to advertise will depend on the cost of advertising and the coverage needed (i.e. how far away people will consider applying for the job) Recruitment agency - Provides employers with details of suitable candidates for a vacancy and can sometimes be referred to as „head-hunters?. They work for a fee and often specialise in particular employment areas e.g. nursing, financial services, teacher recruitment Personal recommendation - Often referred to as „word of mouth? and can be a recommendation from a colleague at work. A full assessment of the candidate is still needed however but potentially it saves on advertising cost
Job description
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Detailed explanation of the roles and responsibilities of the post advertised Most applicants will ask for this before applying for the job Refers to the post available rather than the person
Job specification
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Sets out the kind of qualifications, skills, experience and personal attributes a successful candidate should possess. A vital tool in assessing the suitability of job applicant Refers to the person rather than the post
Advertising a job The Objective of Recruitment Advertising The objectives of recruitment advertising are to: (1) Attract suitable candidates, and (2) Deter unsuitable candidates What makes a good job advert? Whilst there are no hard and fast rules about the contents of a job advert, the following features are likely to be in an effective advertisement: Accurate - describes the job and its requirements accurately Short - not too long-winded; covers just the important ground Honest - does not make claims about the job or the business that will later prove false to applicants Positive - gives the potential applicant a positive feel about joining the business Relevant - provides details that prospective applicants need to know at the application stage (e.g. is shift-working required; are there any qualifications required) Content of a job advert Most job adverts contain: - Details of the business/organisation (name, brand, location, type of business) - Outline details of the job (title, main duties) - Conditions (special factors affecting the job) - Experience / qualifications required (e.g. minimum qualifications, amount of experience) - Rewards (financial and non-financial; the financial rewards may be grouped together under a total valued "package2 - e.g. total package circa £50,000)
- Application process (how should applicants apply, how to; deadlines) Choice of medium What kind of advertising medium should be chosen? The following factors are relevant: Type of job: senior management jobs merit adverts in the national newspapers and/or specialist management magazines (e.g. the Economist, BusinessWeek). Many semi-skilled jobs need only be advertised locally to attract sufficient good quality candidates Cost of advertising: National newspapers and television cost significantly more than local newspapers etc Readership and circulation: how many relevant people does the medium reach? How frequently (e.g. weekly, monthly, annually!. Is the target audience actually only a small fraction of the total readership or Viewer ship? Frequency: how often does the business want to advertise the post?
Recruitment interviews - selecting the candidates An interview is the most common form of selection and it serves a very useful purpose for both employer and job candidate: For the Employer:
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Information that cannot be obtained on paper from a CV or application form Conversational ability- often known as people skills Natural enthusiasm or manner of applicant See how applicant reacts under pressure Queries or extra details missing from CV or application form
For the Candidate:
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Whether job or business is right for them What the culture of company is like Exact details of job
Managers selecting candidates for a high level post in an organisation may even send applicants to an assessment centre. In such centres candidates undergo a variety of tests, role-plays and simulations for a number of days. Once the best candidate has been selected and agreed to take up the post, the new employee must be given an employment contract. This is an important legal document that describes the obligations of the employee and employer to each other (terms and conditions) as well as the initial remuneration package and a number of other important details.
Job analysis The management of a business need to determine what work needs to be done. Job analysis is a key part of this need. Job analysis concentrates on what job holders are expected to do. It provides the basis for a job description, which in turn influences decisions taken on recruitment, training, performance appraisal and reward systems. What is contained in a job analysis? A job analysis would typically contain: Job purpose Job content Accountabilities What is the job meant to do - and how does this related to other parts of the business? Duties and responsibilities What results / outputs is the job holder responsible for?
Performance criteria How will the job holder's performance be measured? Resource requirements E.g. equipment, location
Person specification
What is a person specification? A person specification describes the requirements a job holder needs to be able to perform the job satisfactorily. These are likely to include: - Education and qualifications - Training and experience - Personal attributes / qualities
How should a person specification be created? The most common approach now used by recruiters is to use what are known as "competencies" to design the person specification. These are then classified as "essential" or "desired" to determine which are most important. Competencies might include some or all of the following: - Physical attributes (e.g. state of health, aged, speech) - Attainments (e.g. highest level of education completed, relevant market experience, ability to supervise/manage) - Aptitudes (e.g. verbal reasoning; numerical aptitude) - Interests (social activities; sporting activities) - Personal circumstances (e.g. ability to work shifts; full or part time) Person specifications have to be prepared and used with great care. In particular, it is important to ensure that the list of essential or desired competencies does not lead to unlawful discrimination against potential employees.
TRAINING
Training can be defined as: The process of increasing the knowledge and skills of the workforce to enable them to perform their jobs effectively Training is, therefore, a process whereby an individual acquires job-related skills and knowledge.
TYPES OF TRAINING :? Support new employees (“induction training”) ? On–the job training ? Off-the-job training
Induction training ? Induction training is training given to new employees. ? The purpose of the induction period (which may be a few hours or a few days) is to help a new employee settle down quickly into the job by becoming familiar with the people, the surroundings, the job and the business. ? It is important to give a new employee a good impression on the first day of work. However, the induction programme should not end there. ? It is also important to have a systematic induction programme, spread out over several days, to cover all the ground in the shortest effective time.
On-the-job training With on the job training, employees receive training whilst remaining in the workplace. The main methods of one-the-job training include: ? Demonstration / instruction - showing the trainee how to do the job ? Coaching - a more intensive method of training that involves a close working relationship between an experienced employee and the trainee ? Job rotation - where the trainee is given several jobs in succession, to gain experience of a wide range of activities (e.g. a graduate management trainee might spend periods in several different departments) ? Projects - employees join a project team - which gives them exposure to other parts of the business and allow them to take part in new activities. Most successful project teams are "multi-disciplinary"
The advantages and disadvantages of this form of training can be summarised as follows:
Advantages Generally most cost-effective Employees are actually productive Opportunity to learn whilst doing Training alongside real colleagues
Disadvantages Quality depends on ability of trainer and time available Bad habits might be passed on Learning environment may not be conducive Potential disruption to production
Off-the-job training This occurs when employees are taken away from their place of work to be trained. Common methods of off-the-job training include:
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Day release (employee takes time off work to attend a local college or training centre) Distance learning / evening classes Block release courses - which may involve several weeks at a local college Sandwich courses - where the employee spends a longer period of time at college (e.g. six months) before returning to work Sponsored courses in higher education Self-study, computer-based training
The main advantages and disadvantages of this form of training can be summarised as follows: Advantages A wider range of skills or qualifications can be obtained Can learn from outside specialists or experts Employees can be more confident when starting job Disadvantages More expensive – e.g. transport and accommodation Lost working time and potential output from employee New employees may still need some induction training Employees now have new skills/qualifications and may leave for better jobs
WAGE & SALARY
Introduction As money is the prime need for human beings to meet their basic needs, everyone tries to earn as much money as possible A clerk earning less than a driver may have a vague grievance, but when he earns less than another clerk of comparable qualifications and experience he will show his unhappiness more bitterly. This shows that people have the tendency to compare themselves with others who are in a similar profession and/or with similar qualifications. Wages and salary administration is an integral part of the management of the organization. Wages and salary is a systematic approach to providing monetary value to employees in exchange for work performed
MEANING OF WAGES: Wages means all remuneration capable of being expressed in terms of money, which would, if the terms of contract of employment ,express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment.
MEANING OF SALARY: A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis. From the point of a business, salary can also be viewed as the cost of acquiring human resources for running operations, and is then termed personnel expense or salary expense. In accounting, salaries are recorded in payroll accounts
Factors influencing wage and salary structure and administration A sound wage policy is to adopt a job evaluation programme in order to establish fair differentials in wages based upon differences in job contents. Beside the basic factors provided by a job description and job evaluation, those that are usually taken into consideration for wage and salary administration are • The organizations ability to pay; • Supply and demand of labour; • The prevailing market rate; • The cost of living; • Living wage; • Productivity;
• Trade unions bargaining power; • Job requirements; • Managerial attitudes; and • Psychological and sociological factors. • Levels of skills available in the market.
Wage & salary administration in BSNL. In private organisation employee generally get much more than that an employee of public organisation but the difference comes in benefits that public employee receives. Despite of huge profit, good public image, best among PSU it pays less to its employee than other PSU. If we compare it with other PSU in its field like BSNL, MTNL and TCIL then also its wage rate is low. According to analyst the wage rate is set in comparison with profit earned by company and wage rate of that industry. After pay revision some hard step where taken like:-
Minimum wage rate was fixed for its employee.
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Different wage rate for executive and non executive employee. Employee s was retained to a great extent. Annual incremental were fixed to 5%. 4.There was increment in DA and CCA (city compensation allowance)
MOTIVATION
"Motivation is a decision-making process, through which the individual chooses the desired outcomes and sets in motion the behaviour appropriate to them".
To retain good staff and to encourage them to give of their best while at work requires attention to the financial and psychological and even physiological rewards offered by the organization as a continuous exercise. Why is motivation important? Motivation is important in getting and retaining people. Motivation tools act as the glue that links individuals to organizational goals, In addition, make individuals go beyond the job and be creative. The Motivation Process In its simplest form, the motivation process begins with a need; an individual?s perception of a deficiency .For instance, an employee might feel the need for more challenging work, for higher pay, for time off, or for the respect and admiration of colleagues. These needs lead to thought processes that guide an employee?s decision to satisfy them and to follow a particular course of action. If an employee?s chosen course of action results in the anticipated out come and reward, that person is likely to be motivated by the prospect of a similar reward to act the same way in the future. However, if the employee?s action does not result in the expected reward, he or she is unlikely to repeat the behavior. Thus, the reward acts as feedback mechanism to help the individual evaluate the consequences of the behavior when considering futures action.
Phases of the Motivational Process: Need Identification: First phase of motivation process is need identification where the employee feels his/her some unsatisfied need. The motivation process begins with an unsatisfied need, which creates tension and drives an individual to search for goals that, if attained, will satisfy the need and reduce the tension. Searching Ways to satisfy needs: Second phase is finding the different alternatives that can be used to satisfy the needs, which were felt in first stage. These needs lead to thought processes that guide an employee?s decision to satisfy them and to follow a particular course of action. Selecting Goals: Once if the need is assessed and employee is able to find out the way to satisfy the need than next phase is selection of goals to be performed.
Employee Performance: These needs lead to thought processes that guide an employee?s decision to satisfy them and to follow a particular course of action in form of performance. Consequences of performance Reward/punishments: If an employee?s chosen course of action results in the anticipated out come and reward, that person is likely to be motivated by the prospect of a similar reward to act the same way in the future. However, if the employee?s action does not result in the expected reward, he or she is unlikely to repeat the behaviour Reassessment of Need deficiencies: Once felt need is satisfied through certain rewards in response to performance than employee reassesses any deficiencies and entire process is repeated again. Motivational Theories Motivation theories seek to explain why employees are motivated by and satisfied with one type of work than another. It is essential that mangers have a basic understanding of work motivation because highly motivated employees are more likely to produce a superior quality product or service than employee who lack motivation.
Motivation in BSNL BSNL as we all know that it„s a government organisation so they not give such motivational package which an employee get in private organisation. But without motivation package no employee give their maximum to the organisation. Some motivation package which BSNL give there to employee.
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Free telephone facility Promotion Transfer Time to time revision of pay scale Central government facility Quarter of leaving Good working environment.
LEAVES
Leave is a provision to stay away from work for genuine reasons with prior approval of the authorities. It may be granted for a casual purpose or a planned activity, on medical grounds or in extra-ordinary conditions.
Leave cannot be claimed as a matter of right. Accordingly, leave rules and norms have been categorized under various heads. Vacation and leave are governed by a set of rules and norms as laid down by the Government of India. The following leave rules and norms give details about the different types of leave and how they can be availed of. Certain rules are common to both faculty and non-faculty of the Institute. Certain rules and norms have been stipulated specifically with reference to faculty of the Institute. These rules should be used for the better understanding and utilization of the leave rules and norms and are only complementary and explanatory in nature and in no way meant to supercede the leave provisions of the Government of India.
TYPES OF LEAVES ? ? ? ? ? ? ? ? Casual leave (CL) Earned leave (EL) Vacation (only for academic staff) Half pay leave (HPL) Extra-ordinary leave (EOL) Maternity leave Paternity leave Study leave
1, Casual leave (CL) = Casual Leave is not earned by duty. A staff on CL is not treated as absent from duty. CL cannot be claimed as of right and is subject to a maximum of 8 days in a calendar year. In addition each employee will also be allowed to avail himself/herself of any two holidays from the list of Restricted holidays declared by the Government of India
2, Earned leave (EL) = The EL admissible to a member of the staff shall be 30 days in a calendar year. 15 days of EL is credited in advance on the first January and first July every year 3, Vacation (only for academic staff) = Teachers including Librarians and Physical Directors can avail 60 days vacation in an academic year partly in winter and partly in summer period or entire 60 days in summer period. Other employees are not eligible for vacation 4, Half pay leave (HPL) = The Half Pay Leave admissible to a member of the staff in respect of each completed year of service shall be 20 days. Service includes periods of duty and leave including extraordinary leave with or without Medical certificate, but does not include periods of suspension treated as dies non, overstayal of leave/joining time unless otherwise regularized 5, Extra-ordinary leave (EOL) = Extraordinary Leave shall always be without leave salary and may be granted when no other kind of leave is admissible, or when other leave being admissible, the staff concerned has specifically applied in writing for the grant of EOL 6, Maternity leave = Maternity Leave may be granted to a female staff with less than two Surviving children, for a period of upto 135 days from the date of its Commencement 7, Paternity leave = Male staff with less than two children may be granted 15 days Paternity Leave during the confinement of his wife for childbirth. The Paternity Leave can be availed upto 15 days before or upto six Months from the date of delivery of the child 8, Study leave = Study Leave is granted to staff with not less than five years of service for undergoing a special course consisting of higher studies or specialized training in a professional or technical subject having a direct and close connection with the sphere of his/her duties or being capable of widening his/her mind in a manner likely to improve his ability.
PERFORMANCE APPRAISAL
“It is an objective assessment of an individual’s performance against well defined benchmark” IN the BSNL performance appraisal doesn?t play a great role reason behind that it?s a government organization but it?s a important part of organization. In BSNL every employee has a service book which is written by his senior if employer not do his duty IN the BSNL performance appraisal doesn?t play a great role reason behind that it?s a government organization but it?s a important part of organization. In BSNL every employee has a service book which is written by his senior if employer not do his duty well then his senior mark in his service record book which create problem for gating promotion etc.
CHARACTERSTICS OF PERFORMANCE APPRAISAL
Performance appraisal cannot be implemented successfully unless it is accepted by all concerned. There should be a common and clear understanding of the distinction between evaluation and appraisal. As Patten (1982) argues, evaluation aims at 'objective' measurement, while appraisal includes both objective and subjective assessment of how well an employee has performed during the period under review. Thus performance appraisal aims at 'feedback, development and assessment.' The process of performance appraisal should concentrate on the job of an employee, the environment of the organization, and the employee him- or herself. These three factors are inter-related and inter-dependent. Therefore, in order to be effective, the appraisal system should be individualized, subjective, qualitative and oriented towards problem-solving. It should be based on clearly specified and measurable standards and indicators of performance. Since what is being appraised is performance and not personality, personality traits which are not relevant to job performance should be excluded from the appraisal framework. Some of the important considerations in designing a performance appraisal system are: ? Goal : The job description and the performance goals should be structured, mutually decided and accepted by both management and employees. ? Reliable and consistent: Appraisal should include both objective and subjective ratings to produce reliable and consistent measurement of performance.
? Practical and simple format: The appraisal format should be practical, simple and aim at fulfilling its basic functions. Long and complicated formats are time consuming, difficult to understand, and do not elicit much useful information. ? Regular and routine: While an appraisal system is expected to be formal in a structured manner, informal contacts and interactions can also be used for providing feedback to employees. ? Participatory and open: An effective appraisal system should necessarily involve the employee's participation, usually through an appraisal interview with the supervisor, for feedback and future planning. During this interview, past performance should be discussed frankly and future goals established. A strategy for accomplishing these goals as well as for improving future performance should be evolved jointly by the supervisor and the employee being appraised. Such participation imparts a feeling of involvement and creates a sense of belonging. ? Rewards: Rewards - both positive and negative - should be part of the performance appraisal system. Otherwise, the process lacks impact. ? Feedback should be timely: Unless feedback is timely, it loses its utility and may have only limited influence on performance. ? Impersonal feedback :Feedback must be impersonal if it is to have the desired effect. Personal feedback is usually rejected with contempt, and eventually de-motivates the employee. ? Feedback must be noticeable: The staff member being appraised must be made aware of the information used in the appraisal process. An open appraisal process creates credibility. ? Relevance and responsiveness: Planning and appraisal of performance and consequent rewards or punishments should be oriented towards the objectives of the programme in which the employee has been assigned a role. For example, if the objectives of a programme are directed towards a particular client group, then the appraisal system has to be designed with that orientation. ? Commitment: Responsibility for the appraisal system should be located at a senior level in the organization so as to ensure commitment and involvement throughout the management hierarchy. ?
OBJECTIVE OF PERFORMANCE APPRAISAL
Data relating to performance assessment of employees are recorded, stored, and used for several purposes. The main purposes of employee assessment are: ? To effect promotion based on competence and performance. ? To confirm the services of probationary employees upon their completing the probationary period satisfactorily. ? To let the employees know where they stand in so far as their performance is concerned and to assist employees with constructive criticism and guidance for purpose of their development. ? To assess the training and development needs of employees. ? To decide upon a pay rise where regular pay scales have not been fixed. ? To improve communication. Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goal and concerns. This can also have the effect of increasing the trust between the rater and ratee. ? Finally. Performance appraisal can be used to determined whether HR programs such as selection, training, and transfers have been effective or not. Broadly, performance appraisal serves four objectives – (1) Developmental uses, (2) Administrative uses/decisions, (3) Organisational maintenance / objectives, and (4)Documentation purposes
Multiple Purposes of Performance Assessment
GENERAL APPLICATIONS Developmental Uses ? ? ? ? SPECIFIC PURPOSE Identification of individual needs. Performance feedback. Determining transfers and job assignments Identification of individual strengths and developmental needs Salary Promotion Retention or termination recognition of individual performance lay-offs Identification of poor performers HR planning Determining organisation training needs Information for goal identification Evaluation of HR system Reinforcement of organizational development needs
Administrative uses/ decision
? ? ? ? ? ? ? ? ? ? ?
Organisational maintenance
Documentation
? Criteria for validation research ? Documentation for HR decisions ? Helping to meet legal requirements
PERFORMANCE APPRAISAL AND COMPETITIVE ADVANTAGE
What needs emphasis is that performance evaluation contributes on firms competitive strengths? Besides encouraging high levels of performance, the evaluation system helps in identify employees with potential, reward performance equitably and determine employees need for training. Specifically, performance appraisal helps an organization gain competitive edge in following ways:
Improving Performance
Minimising dissatifaction and turnover
Competitive advantage
Making correct decision
Ensuring Legal compliance
IMPROVING PERFORMANCE: An effective appraisal system can contribute to competitive advantage by improving employee job performance in two ways- by directing employee behavior towards organizational goals, and by monitoring that behavior to ensure that the goals are met.
MAKING CORRECT DECISION: Appraisal is a critical input in making decision on such issue as pay raises, promotion, transfer, training, discharge and completion of probationary periods. Right decision on each of these can contribute to competitive strength of firm.
ENSURING LEGAL COMPLIANCE: Promotions made on factors other than performance might land up a firm in a legal battle, thus diverting its focus on non-productive areas. Companies can minimize costly performance- related ligations by using appraisal system that gives fair and accurate ratings.
MINIMIZING JOB DISSATISFACTION AND TURNOVER: Employees tend to become emotional and frustrated if they perceive that the ratings they get are unfair and inaccurate. The outcomes of fair and accurate appraisal is high motivation and increase in job satisfaction.
PROCESS OF APPRAISAL
1. ESTABLISHING PERFORMANCE STANDARDS The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards. 2. COMMUNICATING THE STANDARDS Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization.
The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators. 3. MEASURING THE ACTUAL PERFORMANCE The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work. 4. COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees? performance. 5. DISCUSSING RESULTS The result of the appraisal is communicated and discussed with the employees on one-toone basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees? future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better. 6. DECISION MAKING The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.
DESIGN APPRAISAL PROGRAMME
Designing an appraisal programme poses several questions which needed to answer. Formal or Informal What methods? Whose performance?
vs
Appraisal design
When to evaluate?
Who are raters?
What to evaluate? How to solve?
What problems?
1. APPRAISAL SHOULD BE FORMAL OR INFORMAL: The first step in designing an appraisal programme is to decide whether the appraisal should be formal or informal. Formal appraisals ussually occur at specified time period once or twice a year. Formal appraisals are most often required by organisation for the purpose of employee evaluation. Informal performance appraisal can be occur whenever the supervisor feels the need of communication. Many organisations encourage a mixture of both formal and informal appraisals. The formal appraisal is most often used for primary evaluation. However, the informal appraisal is very useful for more performance feedback. Informal appraisals should not take the place of formal evaluation.
2. WHOSE PERFORMANCE SHOULD BE RATED? To the question that whose performance is rated the answer is obvious-employees. When we say employees, is it individual or team? Specifically, the ratee may be defined as the individual, work group, division, or organisation.It is possible to define ratee at multiple levels.
3. WHO ARE RATERS? i.
Raters can be
Immediate supervisor is the most appropriate candidate to appraise the performance of her and his subordinates. There are main 3 reasons in support of this choice are? ? ? No one is more familiar with subordinate?s performance than his or her superior. The superior has responsibility of managing aparticular unit. Training and development of subordinate is an important element in every manager?s job.
ii. ?
Subordinates can assess the performance of their superior. The use of this choice may be use in assessing an employee?s ability to communicate, delegate work, allocate resources, disseminate information, resolve intra-personal conflicts, and deal with employees on a fair basis. ? The problem with subordinate evaluation is that supervisor tends to become more popular, not by effective leadership, but by mere gimmicks.
iii.
Peer are in a better position to evaluate certain fact of job performance which the superior or subordinate can not do. Such facts include contribution to work group project, interpersonal effectiveness, communication skills, reliability and initiative. Clossness of working relationship and amount of personal contacts place peers in better position to make accurate assessment. Unfortunately, animosity and friendship may result in destortion of evaluation.
iv.
Clients are seldom used for rating employee performance, nothing can prvent an organisation from using this source. Clients may be members within organisation who have direct contact with rateeand make use of an output this employee provides. Interest, courtesy, dependability and innovativeness are but a few of qualities for which clients can offer rating information. Rating committees These committees are often composed of employee?s immediate supervisor and three or four more supervisors who come in contact with employee.
v.
vi.
Self-appraisal Employee himself or herself evaluates his or her own performance. On positive side, it may be stated that in self-appraisal there is an opportunity to participate in
evaluation, particularly if it is combined with goal setting and this should improve manager?s motivation. Self-appraisal is best suited where executive development is main purpose of evaluation, as the approach enables managers to clearly assess their areas of differences. Unfortunately, self-appraisal are more likely to be less viable, more biased, and less in agreement with the judgement of others.
4. PROBLEMS OF RATING Performance appraisal are subject to a wide variety of inaccuracies and biases referred to as „rating errors?. These errors occur in rater?s observations, judgement, and information processing and can seriously affects assessment results. Some of the most common rating errors are: i. 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. ii. 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. iii. 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. iv. 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.
v.
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.
vi.
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.
vii.
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 does not deserve the rating, good or bad. Perceptual set:- This occurs when rater?s assessment is infiuenced by previously held beliefs. If supervisor, for example has a belief that employee hailing from one particular region are intelligent and hard working, his subsequent rating of an employee hailing from that region tend to be favorably high.
viii.
5. SOLVING RATER’S PROBLEM The best way to overcome the problem is to provide training to raters. Not that training is a “crue all” for all the ills of appraisal system. from a practical point of view, several factors, including the extent to which pay is related to performance ratings, influencing the rating?s they actually give. This means that improving rating systems involves not just training the raters but remedying outside factors such as union pressure. And it means that a rater training, to be effective, should also address real-life problems such as the fact that union representatives will try to influence supervisors to rate everyone high.
Factors that help in improve accuracy? ? The rate has observed and is familiar with behaviours to be appraised. The rater has documentated behaviours to improve the recall.
? ? ? ?
The rater has a check list to obtain and review job-related information. The rater is aware of personal biases and is willing to take action to minimize their effect. Higher levels of management are held accountable to reviewing all ratings. Performance factors are properly defined.
6. WHAT SHOULD BE RATED? ?
Personal qualities ? ? ? ? ? ? ? ? ? ? ? Adaptability: Adjustment with new or changing situations or people. Appearance and bearing: Having good bearing and appearance. Decisiveness: Ability to arrive at conclusions promptly and to decide on a definite course of action. Dependability: Ability to consistently accomplish allocated jobs without supervision. Drive and determination: Ability to execute job vigorously and resolutely, and induce others to do so. Ingenuity: Resourcefulness and ability to creatively devise means to solve unforeseen problems. Initiative: Ability to take necessary and appropriate action independently. Integrity: Ability to maintain an honest approach in all dealings. Loyalty: Ability to faithfully, willingly and loyally support superiors, equals and subordinates. Maturity: Understanding and balance commensurate with age and service. Stamina: Ability to withstand and perform successfully under protracted physical strain.
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Demonstrated performance qualities ? ? ? Professional knowledge: Ability to apply professional knowledge to assigned duties so as to achieve a high standard of performance. Administrative ability: Having administrative ability to use resources economically and judiciously. Responsibility for staff development: Ability to fulfill responsibilities in the development and training of staff.
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Foresight: Ability to display foresight and plan beyond immediate needs. Delegation: Ability to delegate responsibilities and exercise required degree of guidance and supervision. Motivation: Ability to motivate subordinates effectively to produce desired results. Morale: Ability to maintain morale and look after the management of staff. Control: Ability to exercise control over subordinates and gain their confidence.
7. TIMING OF EVALUATION Performance appraisals (PAs) are conducted at least annually, and annual employee performance reviews appear to be the standard in most American organizations. However, “it has been acknowledged that appraisals conducted more frequently (more than once a year) may have positive implications for both the organization and employee.” It is suggested that regular performance feedback provided to employees may quell any unexpected and/or surprising feedback to year-end discussions. In a recent research study concerning the timeliness of PAs, “one of the respondents even suggested that the performance review should be done formally and more frequently, perhaps once a month, and recorded twice a year.” Other researchers propose that the purpose of PAs and the frequency of their feedback are contingent upon the nature of the job and characteristics of the employee. For example, employees of routine jobs where performance maintenance is the goal would benefit sufficiently from annual PA feedback. On the other hand, employees of more discretionary and non-routine jobs, where goal-setting is appropriate and there is room for development, would benefit from more frequent PA feedback.
8. METHODS OF APPRAISAL The last to be addressed in the process of designing an appraisal programme is to determine the method of evaluation. Numerous methods have been 9. devised to measure the quantity and quality of employee?s job performance.
Past oriented method
Future oriented method
MBO
3600 Appraisal
Graphic rating scale Forced choice Essay Field review
APPRAISAL METHOD
ranking
BARS
Checklist
Forced distribution
Critical incident
Work standard
Assessment Centres
Psychological Appraisal
A. Past-oriented methods
1. Graphic rating scales- The Graphic Rating Scale is the simplest and still most popular technique for appraising performance. A Graphic Rating Scale lists traits (such as quality and reasonability) and a range of performance values from unsatisfactory; average; above average; outstanding for each trait. The supervisor rates each subordinate by circling or checking the source that best describes his or her performance for each trait. The assigned values for the traits are then totaled. Assessment could also be trait centered and cover observable traits, such as reliability, adaptability, communication skills, etc. Although graphic scales seem simplistic in construction, they have application in a wide variety of job responsibilities and are more consistent and reliable in comparison with essay appraisal.
2. Checklists – In this system, a large number of statements that describe a specific job are given. Each statement has a weight or scale value attached to it. While rating an employee the supervisor checks all those statements that most closely describe the behavior of the individual under assessment. The rating sheet is then scored by averaging the weights of all the statements checked by the rater. A checklist is constructed for each job by having persons who are quite familiar with the jobs. These statements are then categorized by the judges and weights are assigned to the statements in accordance with the value attached by the judges. Advantages ? ? ? ? Most frequently used method in evaluation of the employees performance.
Limitations This method is very expensive and time consuming Rater may be biased in distinguishing the positive and negative questions. It becomes difficult for the manager to assemble, analyze and weigh a number of statements about the employees characteristics, contributions and behaviours.
3. Forced choice method- In this the rater is given a series of statements about an employee. These statements are arranged in blocks of two or more and rater indicates which statement is most or least descriptive of employee. Unlike the field review method, the forced-choice rating method does not involve discussion with supervisors. Although this technique has several variations, the most common method is to force the assessor to choose the best and worst fit statements from a group of statements. These statements are weighted or scored in advance to assess the employee. The scores or weights assigned to the individual statements are not revealed to the assessor so that she or he cannot favour any individual. In this way, the assessor bias is largely eliminated and comparable standards of performance evolved for an objective. However, this technique is of little value wherever performance appraisal interviews are conducted
4. Forced Distribution Method- The Forced Distribution Method is similar to grading on a curve. With this method, you place predetermined percentage of 39ehav into performance categories.For example, you may decide to distribute employees as follows. 15% High Performers 20% High-Average Performers 30% Average Performers
20% Low-Average Performers 15% Low Performers Advantages ? ? This method tends to eliminate raters bias By forcing the distribution according to pre-determined percentages, the problem of making use of different raters with different scales is avoided. Limitations ? ? The limitation of using this method in salary administration, however, is that it may lead low morale, low productivity and high absenteeism. Employees who feel that they are productive, but find themselves in lower grade(than expected) feel frustrated and exhibit over a period of time reluctance to work.
5. Critical Incident Method With the Critical Incident Method, the supervisor keeps a log of positive and negative examples (Critical Incidents) of a subordinate?s workrelated behavior. Every six months or so, supervisor and subordinate meet to discuss the latter?s performance, using the incidents. Advantages ? ? ? ? ? ? This method provides an objective basis for conducting a thorough discussion of an employees performance. This method avoids recency bias (most recent incidents are too much emphasized)
Limitations Negative incidents may be more noticeable than positive incidents. The supervisors have a tendency to unload a series of complaints about the incidents during an annual performance review sessions. It results in very close supervision which may not be liked by an employee. The recording of incidents may be a chore for the manager concerned, who may be too busy or may forget to do it.
6. Essay appraisal method- The assessor writes a brief essay providing an assessment of the strengths, weaknesses and potential of the subject. In order to do so objectively, it is necessary that the assessor knows the subject well and should have interacted with them. Since the length and contents of the essay vary between assessors, essay ratings are difficult to compare.
7. Field review method- Since individual assessors differ in their standards, they inadvertently introduce bias in their ratings. To overcome this assessor-related bias, essay and graphic rating techniques can be combined in a systematic review process. In the field review method, „a member of the HRM staff meets a small group of assessors from the supervisory units to discuss each rating, systematically identifying areas of inter-assessor disagreement.? It can then be a mechanism to help each assessor to perceive the standards uniformly and thus match the other assessors. Although field review assessment is considered valid and reliable, it is very time consuming.
8. Ranking method- 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.
(a) Alteration ranking method The individual with the best performance is chosen as the ideal employee. Other employees are then ranked against this employee in descending order of comparative performance on a scale of best to worst performance. The alteration ranking method usually involves rating by more than one assessor. The ranks assigned by each assessor are then averaged and a relative ranking of each member in the group is determined. While this is a simple method, it is impractical for large groups. In addition, there may be wide variations in ability between ranks for different positions (b) Paired comparison The paired comparison method systematizes ranking and enables better comparison among individuals to be rated. Every individual in the group is compared with all others in the group. The evaluations received by each person in the group are counted and turned into percentage scores. The scores provide a fair idea as to how each individual in the group is judged by the assessor. (c) Person-to-person rating In the person-to-person rating scales, the names of the actual individuals known to all the assessors are used as a series of standards. These standards may be defined as lowest, low, middle, high and highest performers. Individual employees in the group are then compared with the individuals used as the standards, and rated for a standard
where they match the best. The advantage of this rating scale is that the standards are concrete and are in terms of real individuals. The disadvantage is that the standards set by different assessors may not be consistent. Each assessor constructs their own person-toperson scale which makes comparison of different ratings difficult.
Advantages ? ? Employees are ranked according to their performance levels. It is easier to rank the best and the worst employee.
Limitations ? ? The “whole man” is compared with another “whole man” in this method. In practice, it is very difficult to compare individuals possessing various individual traits. This method speaks only of the position where an employee stands in his group. It does not test anything about how much better or how much worse an employee is when compared to another employee. ? ? When a large number of employees are working, ranking of individuals become a difficult issue. There is no systematic procedure for ranking individuals in the organization. The ranking system does not eliminate the possibility of snap judgements.
9. Behaviourally anchored rating scales (BARS)- This is a relatively new technique. It consists of sets of behaviourial statements describing good or bad performance with respect to important qualities. These qualities may refer to inter-personal relationships, planning and organizing abilities, adaptability and reliability. These statements are developed from critical incidents collected both from the assessor and the subject. B. Future oriented method 1. Assessment centers This technique is used to predict future performance of employees were they to be promoted. The individual whose potential is to be assessed has to work on individual as well as group assignments similar to those they would be required to handle were they promoted. The judgment of observers is pooled and paired comparison or alteration ranking is sometimes used to arrive at a final assessment. The final assessment helps in
making an order-of-merit ranking for each employee. It also involves subjective judgment by observers.
2. 360 degree feedback Many firms have expanded the idea of upward feedback into what the call 360-degree feedback. The feedback is generally used for training and development, rather than for pay increases. Most 360 Degree Feedback system contains several common features. Appropriate parties – peers, supervisors, subordinates and customers, for instance – complete survey, questionnaires on an individual. 360 degree feedback is also known as the multi-rater feedback, whereby ratings are not given just by the next manager up in the organizational hierarchy, but also by peers and subordinates. Appropriates customer ratings are also included, along with the element of self appraisal. Once gathered in, the assessment from the various quarters are compared with one another and the results communicated to the manager concerned.Another technique that is useful for coaching purposes is, of course, MBO. Like the critical incident method, it focuses on actual behavior and actual results, which can be discussed objectively and constructively, with little or no need for a supervisor to “play God.” Advantages ? Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job performance. Employees are judged according to real outcomes, and not on their potential for success, or on someone?s subjective opinion of their abilities. ? The guiding principle of the MBO approach is that direct results can be observed easily. The MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied elements that go to make up employee performance. ? MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts, but to put all the parts together and the performance may be directly observed and measured. Disadvantages ? This approach can lead to unrealistic expectations about what can and cannot be reasonably accomplished. Supervisors and subordinates must have very good “reality checking” skills to use MBO appraisal methods. They will need these skills during the initial stage of objective setting, and for the purposes of self-auditing and self-monitoring.
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Variable objectives may cause employee confusion. It is also possible that fluid objectives may be distorted to disguise or justify failures in performance.
3. Management by objectives The employees are asked to set or help set their own performance goals. This avoids the feeling among employees that they are being judged by unfairly high standards. This method is currently widely used, but not always in its true spirit. Even though the employees are consulted, in many cases management ends up by imposing its standards and objectives. In some cases employees may not like „self-direction or authority.? To avoid such problems, the work standard approach is used.
4. Psychological appraisal It focus on future potential and not the actual performance. Industrial psychologists are employed for conducting the appraisal. The appraisal normally consist of in-depth interviews, psychological tests, discussion with supervisors and a review of other evaluations. The psychologist then writes an evaluation of employee?s intellectual, emotional, motivational and other related characteristics that suggest individuals potential and may predict future performance.
USES OF AN APPRAISAL SYSTEM
A properly designed performance appraisal system can (Rao, 1985): ? ? ? ? Help each employee understand more about their role and become clear about their functions; Be instrumental in helping employees to better understand their strengths and weaknesses with respect to their role and functions in the organization; Help in identifying the developmental needs of employees, given their role and function; Increase mutuality between employees and their supervisors so that every employee feels happy to work with their supervisor and thereby contributes their maximum to the organization; ? Act as a mechanism for increasing communication between employees and their supervisors. In this way, each employee gets to know the expectations of their superior, and each superior also gets to know the difficulties of their subordinates and can try to solve them. Together, they can thus better accomplish their tasks; ? Provide an opportunity to each employee for self-reflection and individual goal-setting, so that individually planned and monitored development takes place;
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Help employees internalize the culture, norms and values of the organization, thus developing an identity and commitment throughout the organization; Help prepare employees for higher responsibilities in the future by continuously reinforcing the development of the 45ehavior and qualities required for higher-level positions in the organization;
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Be instrumental in creating a positive and healthy climate in the organization that drives employees to give their best while enjoying doing so; and Assist in a variety of personnel decisions by periodically generating data regarding each employee.
ADVANTAGES OF PERFORMANCE APPRAISAL
It is said that performance appraisal is an investment for the company which can be justified by following advantages: 1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case. 2. Compensation: Performance Appraisal helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. Performance Appraisal tries to give worth to a performance. Compensation packages which includes bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority. 3. Employees Development: The systematic procedure of performance appraisal helps the supervisors to frame training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programmes. 4. Selection Validation: Performance Appraisal helps the supervisors to understand the validity and importance of the selection procedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this regard.
5. Communication: For an organization, effective communication between employees and employers is very important. Through performance appraisal, communication can be sought for in the following ways: a. Through performance appraisal, the employers can understand and accept skills of subordinates. b. The subordinates can also understand and create a trust and confidence in superiors. c. It also helps in maintaining cordial and congenial labour management relationship. d. It develops the spirit of work and boosts the morale of employees. All the above factors ensure effective communication. 6. Motivation: Performance appraisal serves as a motivation tool. Through evaluating performance of employees, a person?s efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him to improve his performance in the future.
RESEARCH METHODOLOGY
AIM OF THE RESEARCH To ascertain the effectiveness of Performance Appraisal methodology used by the Organisation.
RESEARCH DESIGN A research design is a type of blueprint prepared on various types of blueprints available for the collection, measurement and analysis of data. A research design calls for developing the most efficient plan of gathering the needed information. The design of a research study is based on the purpose of the study. A research design is the specification of methods and procedures for acquiring the information needed. It is the overall pattern or framework of the project that stipulates what information is to be collected from which source and by what procedures. Research Design refers to "framework or plan for a study that guides the collection and analysis of data".
SAMPLING An integral component of a research design is the sampling plan. Specifically, it addresses three questions? ? ? Whom to survey (The Sample Unit) How many to Survey (The Sample Size) & How to select them (The Sampling Procedure)
Making a census study of the whole universe will be impossible on the account of limitations of time. Hence sampling becomes inevitable. A sample is only a portion of the total employee strength. According to Yule, a famous statistician, the object of sampling is to get maximum information about the parent population with minimum effort.
Methods of Sampling Probability Sampling is also known as random sampling or chance sampling .Under this sampling design every individual in the organization has an equal chance, or probability, of being chosen as a sample. This implies that the section of sample items is independent of he
persons making the study that is, the sampling operation is controlled objectively so that the items will be chosen strictly at random. Non Probability Sampling is also known as deliberate sampling , purposeful and judgmental sampling. Non-Probability Sampling is that which does not provide every individual in the Organization with a known chance of being included in the sample
DATA COLLECTION METHOD Collection of data is the first step in statistics. The data collection process follows the formulation for research design including the sample plan. The data can be secondary or primary. 1. Primary Data during the course of the study or research can be through observations or through direct communication with respondents on one form or another or through personal interviews. I have collected primary data by the means of a Questionnaire. The Questionnaire was formulated keeping in mind the objectives of the research study. 2. Secondary data means data that is already available i.e., they refer to data, which has already been collected and analyzed by someone else. When a secondary data is used, the researcher has to look into various sources from where he can obtain data. This includes information from various books, periodicals, magazines etc.
RESEARCH METHODOLOGY ADOPTED A. RESEARCH DESIGN: Descriptive research
B. RESEARCH INSTRUMENT: Structured Questionnaire
C. SAMPLING PLAN i) Sample Method: Non-Probability Sampling (Convenience Sampling) ii) Sample Size: 50 iii) Sample Unit: Employees iv) Sample area: Bharat Sanchar Nigam Limited O/o The General Manager Telecom District, Patelnagar Xge, Bldg. Dehradun. iv) Duration: 45 days
D. SAMPLING DESIGN Convenience sampling, as the name implies, is based on the convenience of the researcher who is to select a sample. Respondents in the sample are included in it merely on account of their being available on the spot where the survey was in progress.
E. SOURCE OF DATA a) Primary Data: Structured Questionnaire through personal intraction. b) Secondary Data: Journals, Internet, Company Data, etc.
F. METHODOLOGY OF THE PROJECT The project work has been carried out in three stages; ? ? ? In first stage a structured questionnaire with objective and question was communicated tested and finalize. The second stage, the questionnaire was administered to the employees at BSNL by contacting them. The third stage the work relating to data entry complication, data analysis and report writing constituted.
The details of the methodology adopted are presented below: 1. The questionnaire Keeping in view the objective of the study, questionnaire was designed and tested on few employees. After getting the response and sanction from the guide the questionnaire finalized. 2. Response to questionnaire In all 65 questionnaires were given to employee falling in the category of supervisors and above. Out of which 50 could be collected back duly completed. The researcher individually contacted the employees to get response on the questionnaire. 3. Data entry and analysis It has been an uphill task to enter the enormous data received through the questionnaire which consist of nearly 20 questions. Response to the descriptive questions though very few but was valuable for purpose of study. Hence these further structured in time with the system adopted for compilation and data analysis.
ANALYSIS AND INTERPRETATION
After collecting the data on “Performance Appraisal System” from the organization through questionnaire, data was analysed and interpreted. The various topics are covered for analysis and interpretation of data through questionnaire. The questionnaire included both open ended and close ended questions. The questionnaire used is placed at Appendix "I". 1. Are the promotional policies well defined in BSNL?
24% 44% Yes No 32% Can't say
Response Yes No Can?t say
Number 22 16 12
Percentage 56 32 24
Interpretation- As per the guidelines from the personnel department employees are to be promoted accordingly. However there is confusion among the employee as these policies are not explained time to time, many are not aware of the existing promotion policies. From the above chart, it can be seen that 56% respondents are agree and 32% are disagree that promotion policies are well defined in the organization. However, 24% were not able to say it, due to lack of information about the promotion policies.
2. What is employee?s opinion as to present appraisal system followed in BSNL?
8% 26%
12% Fully satisfied Satisfied 54% Dissatisfied Can't say
Response Fully satisfied Satisfied Dissatisfied Can?t say
Number 6 27 13 4
Percentage 12 54 26 8
Interpretation – As researcher?s aim is to study effectiveness of present appraisal system followed by the organization. Respondent were asked about present appraisal system followed by the organization. As shown in above chart, only 12% respondents are fully satisfied and 54% are satisfied with the present appraisal system. And 26% of employees are dissatisfied due to some problems. So, this is a good sign as increased level of satisfaction is the main emphasis of any appraisal system.
3. What is employee?s opinion as to the purpose of performance appraisal system is to fulfill performance standards/ yardsticks.
46% 54% Yes No
Response Yes No
Number 27 23
Percentage 56 44
Interpretation- The main purpose of the Appraisal system is to check whether the employee is able to fulfill performance standards or not. As shown in above chart, 56% of the respondents say that the Performance Appraisal System does give a true and fair view of their contribution to the Organization. But 44% respondents replied in the negative.
4. How often the performance appraisal form is filled or performance appraisal is done.
0% 15% 6% Fortnight Monthly Annually 79% Not fixed
Response Fortnight Monthly Annually Not fixed
Number 0 3 42 8
Percentage 0 6 79 15
Interpretation- Performance appraisal review is a constant process and lesser the frequency between the appraisals, the better. The employees say that the longer the frequency between appraisals, the more the chances of the appraisal not matching up to their expectations because many performances get overlooked. If the appraisal is done on a more frequent basis, the employee has a chance to find out the gaps in his / her performance on a more regular basis which will help them to improve more on their performance and thereby eliminate waste. As shown in above chart, 79% of respondents say appraisal done annually in the organization. !5% say not fixed.
5. Who appraises you?
0% 0% 4% 6% 12% 46% Appraisal committee Superior Immediate superior Self-appraisal 32% Peer All of the above Any other
Response Appraisal committee Superior Immediate superior Self appraisal Peer All of the above Any other
Number 0 23 16 3 2 6 0
Percentage 0 46 32 6 4 12 0
Interpretation- Immediate supervisor is the most appropriate candidate to appraise the performance of her and his subordinates because No one is more familiar with subordinate?s performance and superior has responsibility of managing aparticular unit. So, as shown in above chart, 46% of the respondents say that their superior appraised them which is a good indication for the organisation. 32% respondents say immediate superior.
6. What method is being used for performance appraisal in BSNL?
2% 14% 16% 4%
Forced choice distribution Essay method Ranking method Critical incident method Paired comparison 360 degree appraisal Any other
4% 2%
58%
Response Forced choice distribution Essay method Ranking method Critical incident method Paired comparison 360 degree Any other
Number Percentage 1 2 29 2 1 8 7 2 4 58 4 2 16 14
Interpretation- For appraising performance of the employees it is very important to determine the method of evaluation. Numerous methods have been devised to measure the quantity and quality of employee?s job performance. As shown in above chart, 58% of respondents say that ranking method is used in BSNL for performance evaluation of employees. This is a simple method and it is impractical for large groups. While 16% respondents say 3600 appraisal used to evaluate performance of the employees.
7. In your opinion does it identify training needs?
4%
12% 32% To a large extent To a some extent 52% Can't say Not at all
Response To a large extent To some extent Can?t say Not at all
Number 16 26 2 6
Percentage 32 52 4 12
Interpretation- The systematic procedure of performance appraisal helps the supervisors to frame training policies and programmes. As shown in above chart, 52% of respondents are agree that performance appraisal system followed in BSNL is identify the training needs to some extent and 32% say to a large extent so, according to this it is clear that the training and future development programmes in the organization takes place according to performance appraisal.
8. Is the promotional policies are linked with the performance appraisal system.
4% 36% Yes 60% No Can't say
Response Yes No Can?t say
Number 18 30 2
Percentage 36 60 4
Interpretation - A promotion may be defined as an upward advancement of an employee in an organization to another job, which commands better pay/wages, better status and higher opportunities and responsibility, a better working environment, and facilities etc. Performance Appraisal is the systematic evaluation of the performance of employees according to which promotion and demotion given to the employees. As shown in chart, 60% of respondents say that the promotion policies in BSNL are not linked with performance appraisal.
9. Does the appraisal help you in polishing skills & performance area?
26% 50% Yes No 24% Somewhat
Response Yes No Somewhat
Number 25 12 13
Percentage 50 24 26
Interpretation- 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 above chart, it is shown that nearly 50 % of the respondents agree that Performance Appraisal does leads to polishing the skills of the employees. Nearly 24 % of the respondents view that it does not serve this purpose and around 26 % were not able to respond as to whether it serve any such purposes or not.
10. Does the system help you in aligning your goals with those of organization?
24% 46% Yes No 30% Can't say
Response Yes No Can?t say
Number 23 15 12
Percentage 46 30 24
Interpretation- Performance appraisal provide an opportunity to each employee for selfreflection and individual goal-setting, so that individuals goals aligning with those of organization. Respondent were asked that the appraisal system help them to aligning their goals with those of organization. As shown in above chart, 46% of respondents say yes and 30% give negative response.
11. Does personal bias creeps-in while appraising an employee?
16%
Yes No 84%
Response Yes No
Number 8 42
Percentage 16 84
Interpretation- 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, 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.
12. Do the employees get the feedback of performance appraisal?
0% 0% 6% 8% Always Often Only when required 86% Rarely Never
Response Always Often Only when required Rarely Never
Number 43 3 4 0 0
Percentage 86 6 8 0 0
Interpretation - Providing feedback to the employees play a constructive role in the organization. It helps the employee to know his / her weakness and strengths. Feedback provides for area of improvement. The feedback should be given with a positive attitude as this can have an effect on the employee?s future performance. Respondents were asked about the frequency of feedback based on their performance. 86% respondents say that they get feedback always. And the frequency of feedback is good to keep the individual motivated for work in line with the organization expectations.
13. Does the organization provide counseling after appraisal?
0% 16% 4% 32% Always Often Rarely 48% Never Can't say
Response Always Often Rarely Never Can?t say
Number 0 2 16 24 8
Percentage 0 4 32 48 16
Interpretation- It is a very important task of organization to provide counseling to the employees after appraisal. The counseling should be given with a positive attitude as this can have an effect on the employee?s future performance. The purpose of counseling should be to solve the problems faced and motivate the employee to perform better. When respondents were asked that organisation provide counseling to employees after appraisal 48% respondents say never, and it is not good.
14. What kind of remedial measures are taken by organization after appraisal?
46%
38%
Job rotation Sent to training programs Counselled
4%
12%
Any other
Response Job rotation Sent to training programs Counseled Any other
Number 19 6 2 22
Percentage 38 12 4 46
Interpretation- Based on the performance the remedial measures are taken to do away with weakness if any and build on strength and add to existing capability. Responses of employees on remedial measure were shown in above chart; here 38% respondents say job rotation. Few say training program, during the job it was felt that more training input is to be provided to employees to overcome the weakness and improve upon the existing capability of employee.
15. How do you rate the overall assessment of performance appraisal in BSNL?
1% 3% 35% 20% Outstanding Very good Good 41% Satisfactory Poor
Response Outstanding Very good Good Satisfactory Poor
Number 2 13 27 23 1
Percentage 3 20 41 35 1
Interpretation-Performance appraisal system plays an important role in firm?s competitive strengths. The evaluation system helps in identify employees with potential, reward performance equitably and determine employees need for training. Specifically, performance appraisal helps an organization gain competitive edge. So the appraisal system of an organization should be excellent and fulfill expectations of their employees. As shown in above chart, 20% respondents say that the appraisal system of BSNL is very good and 41% say it is good.
SWOT ANALYSIS OF BSNL
Strength? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Established organization with government support. Better coverage of network. Since they have large number of telephone exchanges, so that they can give more stress on advertisement by their different place exchange representatives. Very much transparent in billing for the satisfaction of all the subscribers, no hidden system of billing. Customer care centers for better service in order to reduce the problem of customer.
WeaknessDo not provide smooth service. Frequent network problem. Trade union problem. B.T.S disturbances. Reduce in sales and lack of advertisement. Lack of attraction like other providers.
OpportunityThe can modify their network & implement. They can use their huge human resources and fixed asset. Infrastructure is the best then any other service provider.
ThreatIncrease in number of private telecom sectors. They are providing smooth and good network. They are establishing their own towers in remote corners.
They are engaging contract services with less remuneration
CONCLUSION AND RECOMMENDATIONS
After having analyzed the data, it was observed that practically that the appraisal system of BSNL is average. To be an effective tool, appraisal has to be on the continuous basis in the organisation. 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 employee?s work must be done – which must incorporates both the work related as well as the other personal attributes that are important for work performance. 4. It should be noted that the appraisal form for each job position should be different as each job has different knowledge and skill requirements. There should not be a common appraisal form for every job position in the organization. 5. If greater amount of objectivity can be infused into the appraisal system, it can help to bring more transparency. 6. The job and role expected from the employees should be decided well in advance and that too with the consensus with them. 7. 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. 8. The time period for conducting the appraisal should be revised, so that the exercise becomes a continuous phenomenon. 9. Transparency into the system should be ensured through the discussion about the employee?s performance with the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that. 10. 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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doc_281876971.docx
Bharat Sanchar Nigam Limited is an Indian state-owned telecommunications company headquartered in New Delhi, India. It is the largest provider of fixed telephony and fourth largest mobile telephony provider in India, and is also a provider of broadband services.
Research reports of Performance Appraisal System of Bharat Sanchar Nigam Limited
TABLE OF CONTENTS
1. 2. 3. 4.
Company profile Introduction Organisation structure Hrm strategy ? ? ? ? ? Recruitment & selection Training Wage & salary Motivation at work Leaves
5. 6. 7. 8. 9.
Performance appraisal Research methodology Analysis and interpretation of data with results Conclusion and recommendation References
COMPANY PROFILE
Type Industry Founded
State-owned enterprise Telecommunications Incorporated 2000
Headquarters New Delhi, India Key people R.K. Upadhyay (Chairman & MD) Fixedline and mobile telephony,Internet services, digital television, IPTV
Products
Owner(s) Employees Website
Government of India 281,635 (March 2011) www.new.bsnl.co.in TABLE - 1
BSNL Registered Office
Bharat Sanchar Bhavan Harish Chandra Mathur Lane Janpath, New Delhi-110 001 Bharat Sanchar Bhavan Harish Chandra Mathur Lane Janpath, New Delhi-110 001
BSNL Corporate Office
INTRODUCTION
Bharat Sanchar Nigam Limited (BSNL) was incorporated on 15th September 2000. It took over the business of providing of telecom services and network management from the erstwhile Central Government Departments of Telecom Services (DTS) and Telecom Operations (DTO), with effect from 1st October„2000 on going concern basis. It is one of the largest & leading public sector units providing comprehensive range of telecom services in India. It is the largest provider of fixed telephony and fourth largest mobile telephony provider in India, and is also a provider of broadband services. However, in recent years the company's revenue and market share plunged into heavy losses due to intense competition in Indian telecommunications sector. BSNL is India's oldest and largest communication service provider (CSP). It had a customer base of 95 million as of June 2011. It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi, which are managed by Mahanagar Telephone Nigam (MTNL). BSNL has installed Quality Telecom Network in the country & now focusing on improving it, expanding the network, introducing new telecom services with ICT applications in villages & winning customer's confidence. Today, it has about 43.74 million line basic telephone capacity, 8.83 million WLL capacity, 72.60 million GSM capacity, 37,885 fixed exchanges, 68,162 GSM BTSs, 12,071 CDMA Towers, 197 Satellite Stations, 6,86,644 RKm. of OFC, 50,430 RKm. of microwave network connecting 623 districts, 7330 cities/towns & 5.8 lakhs villages . BSNL is the only service provider, making focused efforts & planned initiatives to bridge the rural-urban digital divide in ICT sector. In fact there is no telecom operator in the country to beat its reach with its wide network giving services in every nook & corner of the country & operates across India except New Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier or North-Eastern regions of the country, BSNL serves its customers with a wide bouquet of telecom services namely Wireline, CDMA mobile, GSM mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP, IN Services, FTTH, etc. BSNL is numero uno of India in all services in its license area. The company offers wide ranging & most transparent tariff schemes designed to suit every customer. BSNL has 90.09 million cellular & 5.06 million WLL customers as on 31.07.2011. 3G Facility has been given to all 2G connections of BSNL. In basic services, BSNL is miles ahead of its
rivals, with 24.58 million wireline phone subscribers i.e. 71.93% share of the wireline subscriber base. BSNL has set up a world class multi-gigabit, multi-protocol convergent IP infrastructure that provides convergent services like voice, data & video through the same Backbone & Broadband Access Network. At present there are 8.09 million broadband customers. The company has vast experience in planning, installation, network integration & maintenance of switching & transmission networks & also has a world class ISO 9000 certified Telecom Training Institute. During the 2010-11, turnover of BSNL is around Rs. 29,700 Crores
SERVICES
BSNL provides almost every telecom service in India. Following are the main telecom services provided by BSNL:
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Universal Telecom Services: Fixed wireline services and landline in local loop (WLL) using CDMA Technology called bfone and Tarang respectively. As of June 30, 2010, BSNL had 75% market share of fixed lines.
BSNL Mobile
Prepaid Mobile ? Cellular Mobile Telephone Services: BSNL is major provider of Cellular Mobile Telephone services using GSM platform under the brand name Cellone & Excel (BSNL Mobile). As of June 30, 2010 BSNL has 13.50% share of mobile telephony in the country. ? WLL-CDMA Telephone Services: BSNL's WLL (Wireless in Local Loop) service is a service giving both fixed line telephony & Mobile telephony.
BSNL Broadband ? Internet: BSNL provides Internet access services through dial-up connection (as Sancharnet through 2009) as Prepaid, (NetOne) as Postpaid and ADSL broadband (BSNL Broadband). BSNL held 55.76% of the market share with reported subscriber base of 9.19 million Internet subscribers with 7.79% of growth at the end of March 2010. Top 12 Dialup Service providers, based on the subscriber base, It Also Provides Online Games via Its Games on Demand (GOD) ? Intelligent Network (IN): BSNL offers value-added services, such as Free Phone Service (FPH), India Telephone Card (Prepaid card), Account Card Calling (ACC), Virtual Private Network (VPN), Tele-voting, Premium Rae Service (PRM), Universal Access Number (UAN). ? 3G:BSNL offers the '3G' or the'3rd Generation' services which includes facilities like video calling, mobile broadband, live TV, 3G Video portal, streaming services like online full length movies and video on demand etc. ? IPTV: BSNL also offers the 'Internet Protocol Television' facility which enables watch television through internet.
? FTTH: Fibre To The Home facility that offers a higher bandwidth for data transfer. This idea was proposed on post-December 2009 ? Helpdesk: BSNL's Helpdesk (Helpdesk) provide help desk support to their customers for their services. ? VVoIP: BSNL, along with Sai Info system - an Information and Communication Technologies (ICTs) provider - has launched Voice and Video Over Internet Protocol (VVoIP). This will allow to make audio as well as video calls to any landline, mobile, or IP phone anywhere in the world, provided that the requisite video phone equipment is available at both ends.
ORGANISATION STRUCTURE
GENERAL MANAGER OF TELECOM DISTRICT
DGM (I)
DGM (II)
DGM (III)
AGM (I) AGM (II) AGM (I) AGM (II) DES
CAO (I)
CAO (II)
SDE (I)
SDE (II)
AO (I)
AO (II)
AO (I)
AO (II)
JTO (I)
JTO (II)
JAO (I)
JAO (II)
PM
TTA
(SR).TOS
RM
SR.TOAS
Introduction
HRM - What is Human Resource Management ("HRM")? You often see phrases like these in the annual reports of major businesses:
? ?
“Our people are our greatest asset” “Nothing is more important than our employees”
You see them so often that it is tempting to treat them as clichés. However, behind the cliché lies an important truth, which is that the human element plays a major part in the success of every business. Effective human resource management has become more important in recent times. Here are some reasons why:
? ?
Most businesses now provide services rather than produce goods – people are the critical resource in the quality and customer service level of any service business. Competitiveness requires a business to be efficient and productive – this is difficult unless the workforce is well motivated, has the right skills and is effectively organised.
As a result, if a business is to be successful and achieve its objectives, then it needs to manage its human resources effectively. So step forward “human resource management”! Human resource management is usually shortened to “HRM”. It is defined by the CIPD as: “The design, implementation and maintenance of strategies to manage people for optimum business performance” In other words, HRM is about how people are managed by a business in order to meet the strategic objectives of the business. The functional objectives set for HRM need to be consistent with the corporate objectives. The key is to remember that HRM is a strategic approach. HRM uses a variety of tools to help meet the strategic needs of the business, each of which needs together in an integrated way. The key tools are:
? ? ? ?
Recruitment & selection Training & development Rewarding and motivating staff Roles and responsibilities (organisational structures)
HRM - Objectives of HRM
Whilst the precise HR objectives will vary from business to business and industry to industry, the following are commonly seen as important HR objectives
:
Objective Ensure resources employed effectively
HR Actions human Pay rates should be competitive but acceptable staff are Achieve staff cost- Minimise Measure returns on investment in training not excessive utilisation turnover
jobs have suitable, Make effective use of Ensure workforce potential Avoid too many under-utilised Make best use of employees skills
achievable workloads or over-stretched staff
unnecessary and costly industrial disputes Maintain good Avoid employer / employee Timely and honest communication with employees and their representatives relations Sensitive handling or potential problems with employees (e.g. dismissal, redundancy, major changes in the business) Comply with all relevant employment legislation
HRM - Hard v Soft HRM There are a variety of ways to approach the management of HR in a business. The business textbooks like to describe two broad approaches to HRM which are explained further below:
? ?
“Hard” HR “Soft” HR Soft HR Management Treats employees as the most important resource in the business and a source of competitive advantage Employees are treated as individuals and their needs are planned accordingly
Hard HR Management Treats employees simply as a resource of the business (like machinery & buildings) Strong link with corporate business planning – what resources do we need, how do we get them and how much will they cost
Focus of HRM: identify workforce needs of Focus of HRM: concentrate on the needs of the business and recruit & manage employees – their roles, rewards, motivation accordingly (hiring, moving and firing) etc Key features Key features
Short-term changes in employee numbers Strategic focus on longer-term workforce (recruitment, redundancy) planning Minimal communication, from the top down Strong and regular two-way communication
Pay – enough to recruit and retain enough Competitive pay structure, with suitable staff (e.g. minimum wage) performance-related rewards (e.g. profit share, share options) Little empowerment or delegation Employees are empowered and encouraged to seek delegation and take responsibility
Appraisal systems focused on making Appraisal systems focused on identifying and judgements (good and bad) about staff addressing training and other employee development needs Taller organisational structures Suits autocratic leadership style Flatter organisational structures Suits democratic leadership style
RECRUITMENT & SELECTION
The Recruitment Process For most businesses, large or small, the task of identifying what work needs doing and who should do it is a continuous challenge.
It is rare that a business of any size operates for long without having to recruit or remove employees. For example, consider why a business might need to recruit staff:
?
?
? ?
Business expansion due to o Increasing sales of existing products o Developing new products o Entering new markets Existing employees leave: o To work with competitors or other local employers o Due to factors such as retirement, sick leave, maternity leave Business needs employees with new skills Business is relocating – and not all of existing workforce want to move to new location
Internal and external recruitment A manager can recruit in two different ways:
? ?
Internal recruitment is when the business looks to fill the vacancy from within its existing workforce External recruitment is when the business looks to fill the vacancy from any suitable applicant outside the business
Of course, the option to use BOTH internal and external recruitment can be used. This is often the case for senior management appointments.
Internal Recruitment
Advantages Cheaper and quicker to recruit
Disadvantages Limits the number of potential applicants
People already familiar with the business No new ideas can be introduced from and how it operates outside Provides opportunities for promotion May cause resentment with in the business – can be motivating candidates not appointed amongst
Business already knows the strengths and Creates another vacancy which needs weaknesses of candidates to be filled External Recruitment Outside people bring in new ideas Longer process Larger pool of workers from which to More expensive process due to find the best candidate advertising and interviews required People have a wider range of experience Selection process may not be effective enough to reveal the best candidate The four most popular ways of recruiting externally are:
? ?
?
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Job centres – Government agencies to help the unemployed find jobs or get training Job advertisements - the most common form of external recruitment. Where a business chooses to advertise will depend on the cost of advertising and the coverage needed (i.e. how far away people will consider applying for the job) Recruitment agency - Provides employers with details of suitable candidates for a vacancy and can sometimes be referred to as „head-hunters?. They work for a fee and often specialise in particular employment areas e.g. nursing, financial services, teacher recruitment Personal recommendation - Often referred to as „word of mouth? and can be a recommendation from a colleague at work. A full assessment of the candidate is still needed however but potentially it saves on advertising cost
Job description
? ? ?
Detailed explanation of the roles and responsibilities of the post advertised Most applicants will ask for this before applying for the job Refers to the post available rather than the person
Job specification
? ?
Sets out the kind of qualifications, skills, experience and personal attributes a successful candidate should possess. A vital tool in assessing the suitability of job applicant Refers to the person rather than the post
Advertising a job The Objective of Recruitment Advertising The objectives of recruitment advertising are to: (1) Attract suitable candidates, and (2) Deter unsuitable candidates What makes a good job advert? Whilst there are no hard and fast rules about the contents of a job advert, the following features are likely to be in an effective advertisement: Accurate - describes the job and its requirements accurately Short - not too long-winded; covers just the important ground Honest - does not make claims about the job or the business that will later prove false to applicants Positive - gives the potential applicant a positive feel about joining the business Relevant - provides details that prospective applicants need to know at the application stage (e.g. is shift-working required; are there any qualifications required) Content of a job advert Most job adverts contain: - Details of the business/organisation (name, brand, location, type of business) - Outline details of the job (title, main duties) - Conditions (special factors affecting the job) - Experience / qualifications required (e.g. minimum qualifications, amount of experience) - Rewards (financial and non-financial; the financial rewards may be grouped together under a total valued "package2 - e.g. total package circa £50,000)
- Application process (how should applicants apply, how to; deadlines) Choice of medium What kind of advertising medium should be chosen? The following factors are relevant: Type of job: senior management jobs merit adverts in the national newspapers and/or specialist management magazines (e.g. the Economist, BusinessWeek). Many semi-skilled jobs need only be advertised locally to attract sufficient good quality candidates Cost of advertising: National newspapers and television cost significantly more than local newspapers etc Readership and circulation: how many relevant people does the medium reach? How frequently (e.g. weekly, monthly, annually!. Is the target audience actually only a small fraction of the total readership or Viewer ship? Frequency: how often does the business want to advertise the post?
Recruitment interviews - selecting the candidates An interview is the most common form of selection and it serves a very useful purpose for both employer and job candidate: For the Employer:
? ? ? ? ?
Information that cannot be obtained on paper from a CV or application form Conversational ability- often known as people skills Natural enthusiasm or manner of applicant See how applicant reacts under pressure Queries or extra details missing from CV or application form
For the Candidate:
? ? ?
Whether job or business is right for them What the culture of company is like Exact details of job
Managers selecting candidates for a high level post in an organisation may even send applicants to an assessment centre. In such centres candidates undergo a variety of tests, role-plays and simulations for a number of days. Once the best candidate has been selected and agreed to take up the post, the new employee must be given an employment contract. This is an important legal document that describes the obligations of the employee and employer to each other (terms and conditions) as well as the initial remuneration package and a number of other important details.
Job analysis The management of a business need to determine what work needs to be done. Job analysis is a key part of this need. Job analysis concentrates on what job holders are expected to do. It provides the basis for a job description, which in turn influences decisions taken on recruitment, training, performance appraisal and reward systems. What is contained in a job analysis? A job analysis would typically contain: Job purpose Job content Accountabilities What is the job meant to do - and how does this related to other parts of the business? Duties and responsibilities What results / outputs is the job holder responsible for?
Performance criteria How will the job holder's performance be measured? Resource requirements E.g. equipment, location
Person specification
What is a person specification? A person specification describes the requirements a job holder needs to be able to perform the job satisfactorily. These are likely to include: - Education and qualifications - Training and experience - Personal attributes / qualities
How should a person specification be created? The most common approach now used by recruiters is to use what are known as "competencies" to design the person specification. These are then classified as "essential" or "desired" to determine which are most important. Competencies might include some or all of the following: - Physical attributes (e.g. state of health, aged, speech) - Attainments (e.g. highest level of education completed, relevant market experience, ability to supervise/manage) - Aptitudes (e.g. verbal reasoning; numerical aptitude) - Interests (social activities; sporting activities) - Personal circumstances (e.g. ability to work shifts; full or part time) Person specifications have to be prepared and used with great care. In particular, it is important to ensure that the list of essential or desired competencies does not lead to unlawful discrimination against potential employees.
TRAINING
Training can be defined as: The process of increasing the knowledge and skills of the workforce to enable them to perform their jobs effectively Training is, therefore, a process whereby an individual acquires job-related skills and knowledge.
TYPES OF TRAINING :? Support new employees (“induction training”) ? On–the job training ? Off-the-job training
Induction training ? Induction training is training given to new employees. ? The purpose of the induction period (which may be a few hours or a few days) is to help a new employee settle down quickly into the job by becoming familiar with the people, the surroundings, the job and the business. ? It is important to give a new employee a good impression on the first day of work. However, the induction programme should not end there. ? It is also important to have a systematic induction programme, spread out over several days, to cover all the ground in the shortest effective time.
On-the-job training With on the job training, employees receive training whilst remaining in the workplace. The main methods of one-the-job training include: ? Demonstration / instruction - showing the trainee how to do the job ? Coaching - a more intensive method of training that involves a close working relationship between an experienced employee and the trainee ? Job rotation - where the trainee is given several jobs in succession, to gain experience of a wide range of activities (e.g. a graduate management trainee might spend periods in several different departments) ? Projects - employees join a project team - which gives them exposure to other parts of the business and allow them to take part in new activities. Most successful project teams are "multi-disciplinary"
The advantages and disadvantages of this form of training can be summarised as follows:
Advantages Generally most cost-effective Employees are actually productive Opportunity to learn whilst doing Training alongside real colleagues
Disadvantages Quality depends on ability of trainer and time available Bad habits might be passed on Learning environment may not be conducive Potential disruption to production
Off-the-job training This occurs when employees are taken away from their place of work to be trained. Common methods of off-the-job training include:
? ? ? ? ? ?
Day release (employee takes time off work to attend a local college or training centre) Distance learning / evening classes Block release courses - which may involve several weeks at a local college Sandwich courses - where the employee spends a longer period of time at college (e.g. six months) before returning to work Sponsored courses in higher education Self-study, computer-based training
The main advantages and disadvantages of this form of training can be summarised as follows: Advantages A wider range of skills or qualifications can be obtained Can learn from outside specialists or experts Employees can be more confident when starting job Disadvantages More expensive – e.g. transport and accommodation Lost working time and potential output from employee New employees may still need some induction training Employees now have new skills/qualifications and may leave for better jobs
WAGE & SALARY
Introduction As money is the prime need for human beings to meet their basic needs, everyone tries to earn as much money as possible A clerk earning less than a driver may have a vague grievance, but when he earns less than another clerk of comparable qualifications and experience he will show his unhappiness more bitterly. This shows that people have the tendency to compare themselves with others who are in a similar profession and/or with similar qualifications. Wages and salary administration is an integral part of the management of the organization. Wages and salary is a systematic approach to providing monetary value to employees in exchange for work performed
MEANING OF WAGES: Wages means all remuneration capable of being expressed in terms of money, which would, if the terms of contract of employment ,express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment.
MEANING OF SALARY: A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis. From the point of a business, salary can also be viewed as the cost of acquiring human resources for running operations, and is then termed personnel expense or salary expense. In accounting, salaries are recorded in payroll accounts
Factors influencing wage and salary structure and administration A sound wage policy is to adopt a job evaluation programme in order to establish fair differentials in wages based upon differences in job contents. Beside the basic factors provided by a job description and job evaluation, those that are usually taken into consideration for wage and salary administration are • The organizations ability to pay; • Supply and demand of labour; • The prevailing market rate; • The cost of living; • Living wage; • Productivity;
• Trade unions bargaining power; • Job requirements; • Managerial attitudes; and • Psychological and sociological factors. • Levels of skills available in the market.
Wage & salary administration in BSNL. In private organisation employee generally get much more than that an employee of public organisation but the difference comes in benefits that public employee receives. Despite of huge profit, good public image, best among PSU it pays less to its employee than other PSU. If we compare it with other PSU in its field like BSNL, MTNL and TCIL then also its wage rate is low. According to analyst the wage rate is set in comparison with profit earned by company and wage rate of that industry. After pay revision some hard step where taken like:-
Minimum wage rate was fixed for its employee.
1. 2. 3. 4.
Different wage rate for executive and non executive employee. Employee s was retained to a great extent. Annual incremental were fixed to 5%. 4.There was increment in DA and CCA (city compensation allowance)
MOTIVATION
"Motivation is a decision-making process, through which the individual chooses the desired outcomes and sets in motion the behaviour appropriate to them".
To retain good staff and to encourage them to give of their best while at work requires attention to the financial and psychological and even physiological rewards offered by the organization as a continuous exercise. Why is motivation important? Motivation is important in getting and retaining people. Motivation tools act as the glue that links individuals to organizational goals, In addition, make individuals go beyond the job and be creative. The Motivation Process In its simplest form, the motivation process begins with a need; an individual?s perception of a deficiency .For instance, an employee might feel the need for more challenging work, for higher pay, for time off, or for the respect and admiration of colleagues. These needs lead to thought processes that guide an employee?s decision to satisfy them and to follow a particular course of action. If an employee?s chosen course of action results in the anticipated out come and reward, that person is likely to be motivated by the prospect of a similar reward to act the same way in the future. However, if the employee?s action does not result in the expected reward, he or she is unlikely to repeat the behavior. Thus, the reward acts as feedback mechanism to help the individual evaluate the consequences of the behavior when considering futures action.
Phases of the Motivational Process: Need Identification: First phase of motivation process is need identification where the employee feels his/her some unsatisfied need. The motivation process begins with an unsatisfied need, which creates tension and drives an individual to search for goals that, if attained, will satisfy the need and reduce the tension. Searching Ways to satisfy needs: Second phase is finding the different alternatives that can be used to satisfy the needs, which were felt in first stage. These needs lead to thought processes that guide an employee?s decision to satisfy them and to follow a particular course of action. Selecting Goals: Once if the need is assessed and employee is able to find out the way to satisfy the need than next phase is selection of goals to be performed.
Employee Performance: These needs lead to thought processes that guide an employee?s decision to satisfy them and to follow a particular course of action in form of performance. Consequences of performance Reward/punishments: If an employee?s chosen course of action results in the anticipated out come and reward, that person is likely to be motivated by the prospect of a similar reward to act the same way in the future. However, if the employee?s action does not result in the expected reward, he or she is unlikely to repeat the behaviour Reassessment of Need deficiencies: Once felt need is satisfied through certain rewards in response to performance than employee reassesses any deficiencies and entire process is repeated again. Motivational Theories Motivation theories seek to explain why employees are motivated by and satisfied with one type of work than another. It is essential that mangers have a basic understanding of work motivation because highly motivated employees are more likely to produce a superior quality product or service than employee who lack motivation.
Motivation in BSNL BSNL as we all know that it„s a government organisation so they not give such motivational package which an employee get in private organisation. But without motivation package no employee give their maximum to the organisation. Some motivation package which BSNL give there to employee.
1. 2. 3. 4. 5. 6. 7.
Free telephone facility Promotion Transfer Time to time revision of pay scale Central government facility Quarter of leaving Good working environment.
LEAVES
Leave is a provision to stay away from work for genuine reasons with prior approval of the authorities. It may be granted for a casual purpose or a planned activity, on medical grounds or in extra-ordinary conditions.
Leave cannot be claimed as a matter of right. Accordingly, leave rules and norms have been categorized under various heads. Vacation and leave are governed by a set of rules and norms as laid down by the Government of India. The following leave rules and norms give details about the different types of leave and how they can be availed of. Certain rules are common to both faculty and non-faculty of the Institute. Certain rules and norms have been stipulated specifically with reference to faculty of the Institute. These rules should be used for the better understanding and utilization of the leave rules and norms and are only complementary and explanatory in nature and in no way meant to supercede the leave provisions of the Government of India.
TYPES OF LEAVES ? ? ? ? ? ? ? ? Casual leave (CL) Earned leave (EL) Vacation (only for academic staff) Half pay leave (HPL) Extra-ordinary leave (EOL) Maternity leave Paternity leave Study leave
1, Casual leave (CL) = Casual Leave is not earned by duty. A staff on CL is not treated as absent from duty. CL cannot be claimed as of right and is subject to a maximum of 8 days in a calendar year. In addition each employee will also be allowed to avail himself/herself of any two holidays from the list of Restricted holidays declared by the Government of India
2, Earned leave (EL) = The EL admissible to a member of the staff shall be 30 days in a calendar year. 15 days of EL is credited in advance on the first January and first July every year 3, Vacation (only for academic staff) = Teachers including Librarians and Physical Directors can avail 60 days vacation in an academic year partly in winter and partly in summer period or entire 60 days in summer period. Other employees are not eligible for vacation 4, Half pay leave (HPL) = The Half Pay Leave admissible to a member of the staff in respect of each completed year of service shall be 20 days. Service includes periods of duty and leave including extraordinary leave with or without Medical certificate, but does not include periods of suspension treated as dies non, overstayal of leave/joining time unless otherwise regularized 5, Extra-ordinary leave (EOL) = Extraordinary Leave shall always be without leave salary and may be granted when no other kind of leave is admissible, or when other leave being admissible, the staff concerned has specifically applied in writing for the grant of EOL 6, Maternity leave = Maternity Leave may be granted to a female staff with less than two Surviving children, for a period of upto 135 days from the date of its Commencement 7, Paternity leave = Male staff with less than two children may be granted 15 days Paternity Leave during the confinement of his wife for childbirth. The Paternity Leave can be availed upto 15 days before or upto six Months from the date of delivery of the child 8, Study leave = Study Leave is granted to staff with not less than five years of service for undergoing a special course consisting of higher studies or specialized training in a professional or technical subject having a direct and close connection with the sphere of his/her duties or being capable of widening his/her mind in a manner likely to improve his ability.
PERFORMANCE APPRAISAL
“It is an objective assessment of an individual’s performance against well defined benchmark” IN the BSNL performance appraisal doesn?t play a great role reason behind that it?s a government organization but it?s a important part of organization. In BSNL every employee has a service book which is written by his senior if employer not do his duty IN the BSNL performance appraisal doesn?t play a great role reason behind that it?s a government organization but it?s a important part of organization. In BSNL every employee has a service book which is written by his senior if employer not do his duty well then his senior mark in his service record book which create problem for gating promotion etc.
CHARACTERSTICS OF PERFORMANCE APPRAISAL
Performance appraisal cannot be implemented successfully unless it is accepted by all concerned. There should be a common and clear understanding of the distinction between evaluation and appraisal. As Patten (1982) argues, evaluation aims at 'objective' measurement, while appraisal includes both objective and subjective assessment of how well an employee has performed during the period under review. Thus performance appraisal aims at 'feedback, development and assessment.' The process of performance appraisal should concentrate on the job of an employee, the environment of the organization, and the employee him- or herself. These three factors are inter-related and inter-dependent. Therefore, in order to be effective, the appraisal system should be individualized, subjective, qualitative and oriented towards problem-solving. It should be based on clearly specified and measurable standards and indicators of performance. Since what is being appraised is performance and not personality, personality traits which are not relevant to job performance should be excluded from the appraisal framework. Some of the important considerations in designing a performance appraisal system are: ? Goal : The job description and the performance goals should be structured, mutually decided and accepted by both management and employees. ? Reliable and consistent: Appraisal should include both objective and subjective ratings to produce reliable and consistent measurement of performance.
? Practical and simple format: The appraisal format should be practical, simple and aim at fulfilling its basic functions. Long and complicated formats are time consuming, difficult to understand, and do not elicit much useful information. ? Regular and routine: While an appraisal system is expected to be formal in a structured manner, informal contacts and interactions can also be used for providing feedback to employees. ? Participatory and open: An effective appraisal system should necessarily involve the employee's participation, usually through an appraisal interview with the supervisor, for feedback and future planning. During this interview, past performance should be discussed frankly and future goals established. A strategy for accomplishing these goals as well as for improving future performance should be evolved jointly by the supervisor and the employee being appraised. Such participation imparts a feeling of involvement and creates a sense of belonging. ? Rewards: Rewards - both positive and negative - should be part of the performance appraisal system. Otherwise, the process lacks impact. ? Feedback should be timely: Unless feedback is timely, it loses its utility and may have only limited influence on performance. ? Impersonal feedback :Feedback must be impersonal if it is to have the desired effect. Personal feedback is usually rejected with contempt, and eventually de-motivates the employee. ? Feedback must be noticeable: The staff member being appraised must be made aware of the information used in the appraisal process. An open appraisal process creates credibility. ? Relevance and responsiveness: Planning and appraisal of performance and consequent rewards or punishments should be oriented towards the objectives of the programme in which the employee has been assigned a role. For example, if the objectives of a programme are directed towards a particular client group, then the appraisal system has to be designed with that orientation. ? Commitment: Responsibility for the appraisal system should be located at a senior level in the organization so as to ensure commitment and involvement throughout the management hierarchy. ?
OBJECTIVE OF PERFORMANCE APPRAISAL
Data relating to performance assessment of employees are recorded, stored, and used for several purposes. The main purposes of employee assessment are: ? To effect promotion based on competence and performance. ? To confirm the services of probationary employees upon their completing the probationary period satisfactorily. ? To let the employees know where they stand in so far as their performance is concerned and to assist employees with constructive criticism and guidance for purpose of their development. ? To assess the training and development needs of employees. ? To decide upon a pay rise where regular pay scales have not been fixed. ? To improve communication. Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goal and concerns. This can also have the effect of increasing the trust between the rater and ratee. ? Finally. Performance appraisal can be used to determined whether HR programs such as selection, training, and transfers have been effective or not. Broadly, performance appraisal serves four objectives – (1) Developmental uses, (2) Administrative uses/decisions, (3) Organisational maintenance / objectives, and (4)Documentation purposes
Multiple Purposes of Performance Assessment
GENERAL APPLICATIONS Developmental Uses ? ? ? ? SPECIFIC PURPOSE Identification of individual needs. Performance feedback. Determining transfers and job assignments Identification of individual strengths and developmental needs Salary Promotion Retention or termination recognition of individual performance lay-offs Identification of poor performers HR planning Determining organisation training needs Information for goal identification Evaluation of HR system Reinforcement of organizational development needs
Administrative uses/ decision
? ? ? ? ? ? ? ? ? ? ?
Organisational maintenance
Documentation
? Criteria for validation research ? Documentation for HR decisions ? Helping to meet legal requirements
PERFORMANCE APPRAISAL AND COMPETITIVE ADVANTAGE
What needs emphasis is that performance evaluation contributes on firms competitive strengths? Besides encouraging high levels of performance, the evaluation system helps in identify employees with potential, reward performance equitably and determine employees need for training. Specifically, performance appraisal helps an organization gain competitive edge in following ways:
Improving Performance
Minimising dissatifaction and turnover
Competitive advantage
Making correct decision
Ensuring Legal compliance
IMPROVING PERFORMANCE: An effective appraisal system can contribute to competitive advantage by improving employee job performance in two ways- by directing employee behavior towards organizational goals, and by monitoring that behavior to ensure that the goals are met.
MAKING CORRECT DECISION: Appraisal is a critical input in making decision on such issue as pay raises, promotion, transfer, training, discharge and completion of probationary periods. Right decision on each of these can contribute to competitive strength of firm.
ENSURING LEGAL COMPLIANCE: Promotions made on factors other than performance might land up a firm in a legal battle, thus diverting its focus on non-productive areas. Companies can minimize costly performance- related ligations by using appraisal system that gives fair and accurate ratings.
MINIMIZING JOB DISSATISFACTION AND TURNOVER: Employees tend to become emotional and frustrated if they perceive that the ratings they get are unfair and inaccurate. The outcomes of fair and accurate appraisal is high motivation and increase in job satisfaction.
PROCESS OF APPRAISAL
1. ESTABLISHING PERFORMANCE STANDARDS The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards. 2. COMMUNICATING THE STANDARDS Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization.
The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators. 3. MEASURING THE ACTUAL PERFORMANCE The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work. 4. COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees? performance. 5. DISCUSSING RESULTS The result of the appraisal is communicated and discussed with the employees on one-toone basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees? future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better. 6. DECISION MAKING The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.
DESIGN APPRAISAL PROGRAMME
Designing an appraisal programme poses several questions which needed to answer. Formal or Informal What methods? Whose performance?
vs
Appraisal design
When to evaluate?
Who are raters?
What to evaluate? How to solve?
What problems?
1. APPRAISAL SHOULD BE FORMAL OR INFORMAL: The first step in designing an appraisal programme is to decide whether the appraisal should be formal or informal. Formal appraisals ussually occur at specified time period once or twice a year. Formal appraisals are most often required by organisation for the purpose of employee evaluation. Informal performance appraisal can be occur whenever the supervisor feels the need of communication. Many organisations encourage a mixture of both formal and informal appraisals. The formal appraisal is most often used for primary evaluation. However, the informal appraisal is very useful for more performance feedback. Informal appraisals should not take the place of formal evaluation.
2. WHOSE PERFORMANCE SHOULD BE RATED? To the question that whose performance is rated the answer is obvious-employees. When we say employees, is it individual or team? Specifically, the ratee may be defined as the individual, work group, division, or organisation.It is possible to define ratee at multiple levels.
3. WHO ARE RATERS? i.
Raters can be
Immediate supervisor is the most appropriate candidate to appraise the performance of her and his subordinates. There are main 3 reasons in support of this choice are? ? ? No one is more familiar with subordinate?s performance than his or her superior. The superior has responsibility of managing aparticular unit. Training and development of subordinate is an important element in every manager?s job.
ii. ?
Subordinates can assess the performance of their superior. The use of this choice may be use in assessing an employee?s ability to communicate, delegate work, allocate resources, disseminate information, resolve intra-personal conflicts, and deal with employees on a fair basis. ? The problem with subordinate evaluation is that supervisor tends to become more popular, not by effective leadership, but by mere gimmicks.
iii.
Peer are in a better position to evaluate certain fact of job performance which the superior or subordinate can not do. Such facts include contribution to work group project, interpersonal effectiveness, communication skills, reliability and initiative. Clossness of working relationship and amount of personal contacts place peers in better position to make accurate assessment. Unfortunately, animosity and friendship may result in destortion of evaluation.
iv.
Clients are seldom used for rating employee performance, nothing can prvent an organisation from using this source. Clients may be members within organisation who have direct contact with rateeand make use of an output this employee provides. Interest, courtesy, dependability and innovativeness are but a few of qualities for which clients can offer rating information. Rating committees These committees are often composed of employee?s immediate supervisor and three or four more supervisors who come in contact with employee.
v.
vi.
Self-appraisal Employee himself or herself evaluates his or her own performance. On positive side, it may be stated that in self-appraisal there is an opportunity to participate in
evaluation, particularly if it is combined with goal setting and this should improve manager?s motivation. Self-appraisal is best suited where executive development is main purpose of evaluation, as the approach enables managers to clearly assess their areas of differences. Unfortunately, self-appraisal are more likely to be less viable, more biased, and less in agreement with the judgement of others.
4. PROBLEMS OF RATING Performance appraisal are subject to a wide variety of inaccuracies and biases referred to as „rating errors?. These errors occur in rater?s observations, judgement, and information processing and can seriously affects assessment results. Some of the most common rating errors are: i. 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. ii. 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. iii. 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. iv. 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.
v.
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.
vi.
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.
vii.
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 does not deserve the rating, good or bad. Perceptual set:- This occurs when rater?s assessment is infiuenced by previously held beliefs. If supervisor, for example has a belief that employee hailing from one particular region are intelligent and hard working, his subsequent rating of an employee hailing from that region tend to be favorably high.
viii.
5. SOLVING RATER’S PROBLEM The best way to overcome the problem is to provide training to raters. Not that training is a “crue all” for all the ills of appraisal system. from a practical point of view, several factors, including the extent to which pay is related to performance ratings, influencing the rating?s they actually give. This means that improving rating systems involves not just training the raters but remedying outside factors such as union pressure. And it means that a rater training, to be effective, should also address real-life problems such as the fact that union representatives will try to influence supervisors to rate everyone high.
Factors that help in improve accuracy? ? The rate has observed and is familiar with behaviours to be appraised. The rater has documentated behaviours to improve the recall.
? ? ? ?
The rater has a check list to obtain and review job-related information. The rater is aware of personal biases and is willing to take action to minimize their effect. Higher levels of management are held accountable to reviewing all ratings. Performance factors are properly defined.
6. WHAT SHOULD BE RATED? ?
Personal qualities ? ? ? ? ? ? ? ? ? ? ? Adaptability: Adjustment with new or changing situations or people. Appearance and bearing: Having good bearing and appearance. Decisiveness: Ability to arrive at conclusions promptly and to decide on a definite course of action. Dependability: Ability to consistently accomplish allocated jobs without supervision. Drive and determination: Ability to execute job vigorously and resolutely, and induce others to do so. Ingenuity: Resourcefulness and ability to creatively devise means to solve unforeseen problems. Initiative: Ability to take necessary and appropriate action independently. Integrity: Ability to maintain an honest approach in all dealings. Loyalty: Ability to faithfully, willingly and loyally support superiors, equals and subordinates. Maturity: Understanding and balance commensurate with age and service. Stamina: Ability to withstand and perform successfully under protracted physical strain.
?
Demonstrated performance qualities ? ? ? Professional knowledge: Ability to apply professional knowledge to assigned duties so as to achieve a high standard of performance. Administrative ability: Having administrative ability to use resources economically and judiciously. Responsibility for staff development: Ability to fulfill responsibilities in the development and training of staff.
? ? ? ? ?
Foresight: Ability to display foresight and plan beyond immediate needs. Delegation: Ability to delegate responsibilities and exercise required degree of guidance and supervision. Motivation: Ability to motivate subordinates effectively to produce desired results. Morale: Ability to maintain morale and look after the management of staff. Control: Ability to exercise control over subordinates and gain their confidence.
7. TIMING OF EVALUATION Performance appraisals (PAs) are conducted at least annually, and annual employee performance reviews appear to be the standard in most American organizations. However, “it has been acknowledged that appraisals conducted more frequently (more than once a year) may have positive implications for both the organization and employee.” It is suggested that regular performance feedback provided to employees may quell any unexpected and/or surprising feedback to year-end discussions. In a recent research study concerning the timeliness of PAs, “one of the respondents even suggested that the performance review should be done formally and more frequently, perhaps once a month, and recorded twice a year.” Other researchers propose that the purpose of PAs and the frequency of their feedback are contingent upon the nature of the job and characteristics of the employee. For example, employees of routine jobs where performance maintenance is the goal would benefit sufficiently from annual PA feedback. On the other hand, employees of more discretionary and non-routine jobs, where goal-setting is appropriate and there is room for development, would benefit from more frequent PA feedback.
8. METHODS OF APPRAISAL The last to be addressed in the process of designing an appraisal programme is to determine the method of evaluation. Numerous methods have been 9. devised to measure the quantity and quality of employee?s job performance.
Past oriented method
Future oriented method
MBO
3600 Appraisal
Graphic rating scale Forced choice Essay Field review
APPRAISAL METHOD
ranking
BARS
Checklist
Forced distribution
Critical incident
Work standard
Assessment Centres
Psychological Appraisal
A. Past-oriented methods
1. Graphic rating scales- The Graphic Rating Scale is the simplest and still most popular technique for appraising performance. A Graphic Rating Scale lists traits (such as quality and reasonability) and a range of performance values from unsatisfactory; average; above average; outstanding for each trait. The supervisor rates each subordinate by circling or checking the source that best describes his or her performance for each trait. The assigned values for the traits are then totaled. Assessment could also be trait centered and cover observable traits, such as reliability, adaptability, communication skills, etc. Although graphic scales seem simplistic in construction, they have application in a wide variety of job responsibilities and are more consistent and reliable in comparison with essay appraisal.
2. Checklists – In this system, a large number of statements that describe a specific job are given. Each statement has a weight or scale value attached to it. While rating an employee the supervisor checks all those statements that most closely describe the behavior of the individual under assessment. The rating sheet is then scored by averaging the weights of all the statements checked by the rater. A checklist is constructed for each job by having persons who are quite familiar with the jobs. These statements are then categorized by the judges and weights are assigned to the statements in accordance with the value attached by the judges. Advantages ? ? ? ? Most frequently used method in evaluation of the employees performance.
Limitations This method is very expensive and time consuming Rater may be biased in distinguishing the positive and negative questions. It becomes difficult for the manager to assemble, analyze and weigh a number of statements about the employees characteristics, contributions and behaviours.
3. Forced choice method- In this the rater is given a series of statements about an employee. These statements are arranged in blocks of two or more and rater indicates which statement is most or least descriptive of employee. Unlike the field review method, the forced-choice rating method does not involve discussion with supervisors. Although this technique has several variations, the most common method is to force the assessor to choose the best and worst fit statements from a group of statements. These statements are weighted or scored in advance to assess the employee. The scores or weights assigned to the individual statements are not revealed to the assessor so that she or he cannot favour any individual. In this way, the assessor bias is largely eliminated and comparable standards of performance evolved for an objective. However, this technique is of little value wherever performance appraisal interviews are conducted
4. Forced Distribution Method- The Forced Distribution Method is similar to grading on a curve. With this method, you place predetermined percentage of 39ehav into performance categories.For example, you may decide to distribute employees as follows. 15% High Performers 20% High-Average Performers 30% Average Performers
20% Low-Average Performers 15% Low Performers Advantages ? ? This method tends to eliminate raters bias By forcing the distribution according to pre-determined percentages, the problem of making use of different raters with different scales is avoided. Limitations ? ? The limitation of using this method in salary administration, however, is that it may lead low morale, low productivity and high absenteeism. Employees who feel that they are productive, but find themselves in lower grade(than expected) feel frustrated and exhibit over a period of time reluctance to work.
5. Critical Incident Method With the Critical Incident Method, the supervisor keeps a log of positive and negative examples (Critical Incidents) of a subordinate?s workrelated behavior. Every six months or so, supervisor and subordinate meet to discuss the latter?s performance, using the incidents. Advantages ? ? ? ? ? ? This method provides an objective basis for conducting a thorough discussion of an employees performance. This method avoids recency bias (most recent incidents are too much emphasized)
Limitations Negative incidents may be more noticeable than positive incidents. The supervisors have a tendency to unload a series of complaints about the incidents during an annual performance review sessions. It results in very close supervision which may not be liked by an employee. The recording of incidents may be a chore for the manager concerned, who may be too busy or may forget to do it.
6. Essay appraisal method- The assessor writes a brief essay providing an assessment of the strengths, weaknesses and potential of the subject. In order to do so objectively, it is necessary that the assessor knows the subject well and should have interacted with them. Since the length and contents of the essay vary between assessors, essay ratings are difficult to compare.
7. Field review method- Since individual assessors differ in their standards, they inadvertently introduce bias in their ratings. To overcome this assessor-related bias, essay and graphic rating techniques can be combined in a systematic review process. In the field review method, „a member of the HRM staff meets a small group of assessors from the supervisory units to discuss each rating, systematically identifying areas of inter-assessor disagreement.? It can then be a mechanism to help each assessor to perceive the standards uniformly and thus match the other assessors. Although field review assessment is considered valid and reliable, it is very time consuming.
8. Ranking method- 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.
(a) Alteration ranking method The individual with the best performance is chosen as the ideal employee. Other employees are then ranked against this employee in descending order of comparative performance on a scale of best to worst performance. The alteration ranking method usually involves rating by more than one assessor. The ranks assigned by each assessor are then averaged and a relative ranking of each member in the group is determined. While this is a simple method, it is impractical for large groups. In addition, there may be wide variations in ability between ranks for different positions (b) Paired comparison The paired comparison method systematizes ranking and enables better comparison among individuals to be rated. Every individual in the group is compared with all others in the group. The evaluations received by each person in the group are counted and turned into percentage scores. The scores provide a fair idea as to how each individual in the group is judged by the assessor. (c) Person-to-person rating In the person-to-person rating scales, the names of the actual individuals known to all the assessors are used as a series of standards. These standards may be defined as lowest, low, middle, high and highest performers. Individual employees in the group are then compared with the individuals used as the standards, and rated for a standard
where they match the best. The advantage of this rating scale is that the standards are concrete and are in terms of real individuals. The disadvantage is that the standards set by different assessors may not be consistent. Each assessor constructs their own person-toperson scale which makes comparison of different ratings difficult.
Advantages ? ? Employees are ranked according to their performance levels. It is easier to rank the best and the worst employee.
Limitations ? ? The “whole man” is compared with another “whole man” in this method. In practice, it is very difficult to compare individuals possessing various individual traits. This method speaks only of the position where an employee stands in his group. It does not test anything about how much better or how much worse an employee is when compared to another employee. ? ? When a large number of employees are working, ranking of individuals become a difficult issue. There is no systematic procedure for ranking individuals in the organization. The ranking system does not eliminate the possibility of snap judgements.
9. Behaviourally anchored rating scales (BARS)- This is a relatively new technique. It consists of sets of behaviourial statements describing good or bad performance with respect to important qualities. These qualities may refer to inter-personal relationships, planning and organizing abilities, adaptability and reliability. These statements are developed from critical incidents collected both from the assessor and the subject. B. Future oriented method 1. Assessment centers This technique is used to predict future performance of employees were they to be promoted. The individual whose potential is to be assessed has to work on individual as well as group assignments similar to those they would be required to handle were they promoted. The judgment of observers is pooled and paired comparison or alteration ranking is sometimes used to arrive at a final assessment. The final assessment helps in
making an order-of-merit ranking for each employee. It also involves subjective judgment by observers.
2. 360 degree feedback Many firms have expanded the idea of upward feedback into what the call 360-degree feedback. The feedback is generally used for training and development, rather than for pay increases. Most 360 Degree Feedback system contains several common features. Appropriate parties – peers, supervisors, subordinates and customers, for instance – complete survey, questionnaires on an individual. 360 degree feedback is also known as the multi-rater feedback, whereby ratings are not given just by the next manager up in the organizational hierarchy, but also by peers and subordinates. Appropriates customer ratings are also included, along with the element of self appraisal. Once gathered in, the assessment from the various quarters are compared with one another and the results communicated to the manager concerned.Another technique that is useful for coaching purposes is, of course, MBO. Like the critical incident method, it focuses on actual behavior and actual results, which can be discussed objectively and constructively, with little or no need for a supervisor to “play God.” Advantages ? Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job performance. Employees are judged according to real outcomes, and not on their potential for success, or on someone?s subjective opinion of their abilities. ? The guiding principle of the MBO approach is that direct results can be observed easily. The MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied elements that go to make up employee performance. ? MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts, but to put all the parts together and the performance may be directly observed and measured. Disadvantages ? This approach can lead to unrealistic expectations about what can and cannot be reasonably accomplished. Supervisors and subordinates must have very good “reality checking” skills to use MBO appraisal methods. They will need these skills during the initial stage of objective setting, and for the purposes of self-auditing and self-monitoring.
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Variable objectives may cause employee confusion. It is also possible that fluid objectives may be distorted to disguise or justify failures in performance.
3. Management by objectives The employees are asked to set or help set their own performance goals. This avoids the feeling among employees that they are being judged by unfairly high standards. This method is currently widely used, but not always in its true spirit. Even though the employees are consulted, in many cases management ends up by imposing its standards and objectives. In some cases employees may not like „self-direction or authority.? To avoid such problems, the work standard approach is used.
4. Psychological appraisal It focus on future potential and not the actual performance. Industrial psychologists are employed for conducting the appraisal. The appraisal normally consist of in-depth interviews, psychological tests, discussion with supervisors and a review of other evaluations. The psychologist then writes an evaluation of employee?s intellectual, emotional, motivational and other related characteristics that suggest individuals potential and may predict future performance.
USES OF AN APPRAISAL SYSTEM
A properly designed performance appraisal system can (Rao, 1985): ? ? ? ? Help each employee understand more about their role and become clear about their functions; Be instrumental in helping employees to better understand their strengths and weaknesses with respect to their role and functions in the organization; Help in identifying the developmental needs of employees, given their role and function; Increase mutuality between employees and their supervisors so that every employee feels happy to work with their supervisor and thereby contributes their maximum to the organization; ? Act as a mechanism for increasing communication between employees and their supervisors. In this way, each employee gets to know the expectations of their superior, and each superior also gets to know the difficulties of their subordinates and can try to solve them. Together, they can thus better accomplish their tasks; ? Provide an opportunity to each employee for self-reflection and individual goal-setting, so that individually planned and monitored development takes place;
? ?
Help employees internalize the culture, norms and values of the organization, thus developing an identity and commitment throughout the organization; Help prepare employees for higher responsibilities in the future by continuously reinforcing the development of the 45ehavior and qualities required for higher-level positions in the organization;
? ?
Be instrumental in creating a positive and healthy climate in the organization that drives employees to give their best while enjoying doing so; and Assist in a variety of personnel decisions by periodically generating data regarding each employee.
ADVANTAGES OF PERFORMANCE APPRAISAL
It is said that performance appraisal is an investment for the company which can be justified by following advantages: 1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case. 2. Compensation: Performance Appraisal helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. Performance Appraisal tries to give worth to a performance. Compensation packages which includes bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority. 3. Employees Development: The systematic procedure of performance appraisal helps the supervisors to frame training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programmes. 4. Selection Validation: Performance Appraisal helps the supervisors to understand the validity and importance of the selection procedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this regard.
5. Communication: For an organization, effective communication between employees and employers is very important. Through performance appraisal, communication can be sought for in the following ways: a. Through performance appraisal, the employers can understand and accept skills of subordinates. b. The subordinates can also understand and create a trust and confidence in superiors. c. It also helps in maintaining cordial and congenial labour management relationship. d. It develops the spirit of work and boosts the morale of employees. All the above factors ensure effective communication. 6. Motivation: Performance appraisal serves as a motivation tool. Through evaluating performance of employees, a person?s efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him to improve his performance in the future.
RESEARCH METHODOLOGY
AIM OF THE RESEARCH To ascertain the effectiveness of Performance Appraisal methodology used by the Organisation.
RESEARCH DESIGN A research design is a type of blueprint prepared on various types of blueprints available for the collection, measurement and analysis of data. A research design calls for developing the most efficient plan of gathering the needed information. The design of a research study is based on the purpose of the study. A research design is the specification of methods and procedures for acquiring the information needed. It is the overall pattern or framework of the project that stipulates what information is to be collected from which source and by what procedures. Research Design refers to "framework or plan for a study that guides the collection and analysis of data".
SAMPLING An integral component of a research design is the sampling plan. Specifically, it addresses three questions? ? ? Whom to survey (The Sample Unit) How many to Survey (The Sample Size) & How to select them (The Sampling Procedure)
Making a census study of the whole universe will be impossible on the account of limitations of time. Hence sampling becomes inevitable. A sample is only a portion of the total employee strength. According to Yule, a famous statistician, the object of sampling is to get maximum information about the parent population with minimum effort.
Methods of Sampling Probability Sampling is also known as random sampling or chance sampling .Under this sampling design every individual in the organization has an equal chance, or probability, of being chosen as a sample. This implies that the section of sample items is independent of he
persons making the study that is, the sampling operation is controlled objectively so that the items will be chosen strictly at random. Non Probability Sampling is also known as deliberate sampling , purposeful and judgmental sampling. Non-Probability Sampling is that which does not provide every individual in the Organization with a known chance of being included in the sample
DATA COLLECTION METHOD Collection of data is the first step in statistics. The data collection process follows the formulation for research design including the sample plan. The data can be secondary or primary. 1. Primary Data during the course of the study or research can be through observations or through direct communication with respondents on one form or another or through personal interviews. I have collected primary data by the means of a Questionnaire. The Questionnaire was formulated keeping in mind the objectives of the research study. 2. Secondary data means data that is already available i.e., they refer to data, which has already been collected and analyzed by someone else. When a secondary data is used, the researcher has to look into various sources from where he can obtain data. This includes information from various books, periodicals, magazines etc.
RESEARCH METHODOLOGY ADOPTED A. RESEARCH DESIGN: Descriptive research
B. RESEARCH INSTRUMENT: Structured Questionnaire
C. SAMPLING PLAN i) Sample Method: Non-Probability Sampling (Convenience Sampling) ii) Sample Size: 50 iii) Sample Unit: Employees iv) Sample area: Bharat Sanchar Nigam Limited O/o The General Manager Telecom District, Patelnagar Xge, Bldg. Dehradun. iv) Duration: 45 days
D. SAMPLING DESIGN Convenience sampling, as the name implies, is based on the convenience of the researcher who is to select a sample. Respondents in the sample are included in it merely on account of their being available on the spot where the survey was in progress.
E. SOURCE OF DATA a) Primary Data: Structured Questionnaire through personal intraction. b) Secondary Data: Journals, Internet, Company Data, etc.
F. METHODOLOGY OF THE PROJECT The project work has been carried out in three stages; ? ? ? In first stage a structured questionnaire with objective and question was communicated tested and finalize. The second stage, the questionnaire was administered to the employees at BSNL by contacting them. The third stage the work relating to data entry complication, data analysis and report writing constituted.
The details of the methodology adopted are presented below: 1. The questionnaire Keeping in view the objective of the study, questionnaire was designed and tested on few employees. After getting the response and sanction from the guide the questionnaire finalized. 2. Response to questionnaire In all 65 questionnaires were given to employee falling in the category of supervisors and above. Out of which 50 could be collected back duly completed. The researcher individually contacted the employees to get response on the questionnaire. 3. Data entry and analysis It has been an uphill task to enter the enormous data received through the questionnaire which consist of nearly 20 questions. Response to the descriptive questions though very few but was valuable for purpose of study. Hence these further structured in time with the system adopted for compilation and data analysis.
ANALYSIS AND INTERPRETATION
After collecting the data on “Performance Appraisal System” from the organization through questionnaire, data was analysed and interpreted. The various topics are covered for analysis and interpretation of data through questionnaire. The questionnaire included both open ended and close ended questions. The questionnaire used is placed at Appendix "I". 1. Are the promotional policies well defined in BSNL?
24% 44% Yes No 32% Can't say
Response Yes No Can?t say
Number 22 16 12
Percentage 56 32 24
Interpretation- As per the guidelines from the personnel department employees are to be promoted accordingly. However there is confusion among the employee as these policies are not explained time to time, many are not aware of the existing promotion policies. From the above chart, it can be seen that 56% respondents are agree and 32% are disagree that promotion policies are well defined in the organization. However, 24% were not able to say it, due to lack of information about the promotion policies.
2. What is employee?s opinion as to present appraisal system followed in BSNL?
8% 26%
12% Fully satisfied Satisfied 54% Dissatisfied Can't say
Response Fully satisfied Satisfied Dissatisfied Can?t say
Number 6 27 13 4
Percentage 12 54 26 8
Interpretation – As researcher?s aim is to study effectiveness of present appraisal system followed by the organization. Respondent were asked about present appraisal system followed by the organization. As shown in above chart, only 12% respondents are fully satisfied and 54% are satisfied with the present appraisal system. And 26% of employees are dissatisfied due to some problems. So, this is a good sign as increased level of satisfaction is the main emphasis of any appraisal system.
3. What is employee?s opinion as to the purpose of performance appraisal system is to fulfill performance standards/ yardsticks.
46% 54% Yes No
Response Yes No
Number 27 23
Percentage 56 44
Interpretation- The main purpose of the Appraisal system is to check whether the employee is able to fulfill performance standards or not. As shown in above chart, 56% of the respondents say that the Performance Appraisal System does give a true and fair view of their contribution to the Organization. But 44% respondents replied in the negative.
4. How often the performance appraisal form is filled or performance appraisal is done.
0% 15% 6% Fortnight Monthly Annually 79% Not fixed
Response Fortnight Monthly Annually Not fixed
Number 0 3 42 8
Percentage 0 6 79 15
Interpretation- Performance appraisal review is a constant process and lesser the frequency between the appraisals, the better. The employees say that the longer the frequency between appraisals, the more the chances of the appraisal not matching up to their expectations because many performances get overlooked. If the appraisal is done on a more frequent basis, the employee has a chance to find out the gaps in his / her performance on a more regular basis which will help them to improve more on their performance and thereby eliminate waste. As shown in above chart, 79% of respondents say appraisal done annually in the organization. !5% say not fixed.
5. Who appraises you?
0% 0% 4% 6% 12% 46% Appraisal committee Superior Immediate superior Self-appraisal 32% Peer All of the above Any other
Response Appraisal committee Superior Immediate superior Self appraisal Peer All of the above Any other
Number 0 23 16 3 2 6 0
Percentage 0 46 32 6 4 12 0
Interpretation- Immediate supervisor is the most appropriate candidate to appraise the performance of her and his subordinates because No one is more familiar with subordinate?s performance and superior has responsibility of managing aparticular unit. So, as shown in above chart, 46% of the respondents say that their superior appraised them which is a good indication for the organisation. 32% respondents say immediate superior.
6. What method is being used for performance appraisal in BSNL?
2% 14% 16% 4%
Forced choice distribution Essay method Ranking method Critical incident method Paired comparison 360 degree appraisal Any other
4% 2%
58%
Response Forced choice distribution Essay method Ranking method Critical incident method Paired comparison 360 degree Any other
Number Percentage 1 2 29 2 1 8 7 2 4 58 4 2 16 14
Interpretation- For appraising performance of the employees it is very important to determine the method of evaluation. Numerous methods have been devised to measure the quantity and quality of employee?s job performance. As shown in above chart, 58% of respondents say that ranking method is used in BSNL for performance evaluation of employees. This is a simple method and it is impractical for large groups. While 16% respondents say 3600 appraisal used to evaluate performance of the employees.
7. In your opinion does it identify training needs?
4%
12% 32% To a large extent To a some extent 52% Can't say Not at all
Response To a large extent To some extent Can?t say Not at all
Number 16 26 2 6
Percentage 32 52 4 12
Interpretation- The systematic procedure of performance appraisal helps the supervisors to frame training policies and programmes. As shown in above chart, 52% of respondents are agree that performance appraisal system followed in BSNL is identify the training needs to some extent and 32% say to a large extent so, according to this it is clear that the training and future development programmes in the organization takes place according to performance appraisal.
8. Is the promotional policies are linked with the performance appraisal system.
4% 36% Yes 60% No Can't say
Response Yes No Can?t say
Number 18 30 2
Percentage 36 60 4
Interpretation - A promotion may be defined as an upward advancement of an employee in an organization to another job, which commands better pay/wages, better status and higher opportunities and responsibility, a better working environment, and facilities etc. Performance Appraisal is the systematic evaluation of the performance of employees according to which promotion and demotion given to the employees. As shown in chart, 60% of respondents say that the promotion policies in BSNL are not linked with performance appraisal.
9. Does the appraisal help you in polishing skills & performance area?
26% 50% Yes No 24% Somewhat
Response Yes No Somewhat
Number 25 12 13
Percentage 50 24 26
Interpretation- 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 above chart, it is shown that nearly 50 % of the respondents agree that Performance Appraisal does leads to polishing the skills of the employees. Nearly 24 % of the respondents view that it does not serve this purpose and around 26 % were not able to respond as to whether it serve any such purposes or not.
10. Does the system help you in aligning your goals with those of organization?
24% 46% Yes No 30% Can't say
Response Yes No Can?t say
Number 23 15 12
Percentage 46 30 24
Interpretation- Performance appraisal provide an opportunity to each employee for selfreflection and individual goal-setting, so that individuals goals aligning with those of organization. Respondent were asked that the appraisal system help them to aligning their goals with those of organization. As shown in above chart, 46% of respondents say yes and 30% give negative response.
11. Does personal bias creeps-in while appraising an employee?
16%
Yes No 84%
Response Yes No
Number 8 42
Percentage 16 84
Interpretation- 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, 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.
12. Do the employees get the feedback of performance appraisal?
0% 0% 6% 8% Always Often Only when required 86% Rarely Never
Response Always Often Only when required Rarely Never
Number 43 3 4 0 0
Percentage 86 6 8 0 0
Interpretation - Providing feedback to the employees play a constructive role in the organization. It helps the employee to know his / her weakness and strengths. Feedback provides for area of improvement. The feedback should be given with a positive attitude as this can have an effect on the employee?s future performance. Respondents were asked about the frequency of feedback based on their performance. 86% respondents say that they get feedback always. And the frequency of feedback is good to keep the individual motivated for work in line with the organization expectations.
13. Does the organization provide counseling after appraisal?
0% 16% 4% 32% Always Often Rarely 48% Never Can't say
Response Always Often Rarely Never Can?t say
Number 0 2 16 24 8
Percentage 0 4 32 48 16
Interpretation- It is a very important task of organization to provide counseling to the employees after appraisal. The counseling should be given with a positive attitude as this can have an effect on the employee?s future performance. The purpose of counseling should be to solve the problems faced and motivate the employee to perform better. When respondents were asked that organisation provide counseling to employees after appraisal 48% respondents say never, and it is not good.
14. What kind of remedial measures are taken by organization after appraisal?
46%
38%
Job rotation Sent to training programs Counselled
4%
12%
Any other
Response Job rotation Sent to training programs Counseled Any other
Number 19 6 2 22
Percentage 38 12 4 46
Interpretation- Based on the performance the remedial measures are taken to do away with weakness if any and build on strength and add to existing capability. Responses of employees on remedial measure were shown in above chart; here 38% respondents say job rotation. Few say training program, during the job it was felt that more training input is to be provided to employees to overcome the weakness and improve upon the existing capability of employee.
15. How do you rate the overall assessment of performance appraisal in BSNL?
1% 3% 35% 20% Outstanding Very good Good 41% Satisfactory Poor
Response Outstanding Very good Good Satisfactory Poor
Number 2 13 27 23 1
Percentage 3 20 41 35 1
Interpretation-Performance appraisal system plays an important role in firm?s competitive strengths. The evaluation system helps in identify employees with potential, reward performance equitably and determine employees need for training. Specifically, performance appraisal helps an organization gain competitive edge. So the appraisal system of an organization should be excellent and fulfill expectations of their employees. As shown in above chart, 20% respondents say that the appraisal system of BSNL is very good and 41% say it is good.
SWOT ANALYSIS OF BSNL
Strength? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Established organization with government support. Better coverage of network. Since they have large number of telephone exchanges, so that they can give more stress on advertisement by their different place exchange representatives. Very much transparent in billing for the satisfaction of all the subscribers, no hidden system of billing. Customer care centers for better service in order to reduce the problem of customer.
WeaknessDo not provide smooth service. Frequent network problem. Trade union problem. B.T.S disturbances. Reduce in sales and lack of advertisement. Lack of attraction like other providers.
OpportunityThe can modify their network & implement. They can use their huge human resources and fixed asset. Infrastructure is the best then any other service provider.
ThreatIncrease in number of private telecom sectors. They are providing smooth and good network. They are establishing their own towers in remote corners.
They are engaging contract services with less remuneration
CONCLUSION AND RECOMMENDATIONS
After having analyzed the data, it was observed that practically that the appraisal system of BSNL is average. To be an effective tool, appraisal has to be on the continuous basis in the organisation. 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 employee?s work must be done – which must incorporates both the work related as well as the other personal attributes that are important for work performance. 4. It should be noted that the appraisal form for each job position should be different as each job has different knowledge and skill requirements. There should not be a common appraisal form for every job position in the organization. 5. If greater amount of objectivity can be infused into the appraisal system, it can help to bring more transparency. 6. The job and role expected from the employees should be decided well in advance and that too with the consensus with them. 7. 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. 8. The time period for conducting the appraisal should be revised, so that the exercise becomes a continuous phenomenon. 9. Transparency into the system should be ensured through the discussion about the employee?s performance with the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that. 10. 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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