A STUDY ON EFFECTIVENESS ON PERFORMANCE APPRAISAL

SYSTEM AND SATISFACTION

AT BHARATH SANCHAR NIGAM LIMITED RAJAHMUNDRY
Project report Submitted for the

Partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

CHEBOLU LAKSHMI SUSMITHA

(Reg. No. 17551E0016)

Under the esteem Guidance of

Dr.R.D.GOODWIN

DEPARTMENT OF MANAGEMENT STUDIES

GODAVARI INSTITUTE OF ENGINEERING AND TECHNOLOGY
(AUTONOMOUS)

(Permanent Affiliation to JNTUK, Kakinada, approved by AICTE, Accredited by NBA,NAAC A+)

2017-19
 DECLARATION

I, CHEBOLU LAKSHMI SUSMITHA declare that the project work entitled – A study on
EFFECTIVESS ON PERFORMANCE APPRAISAL SYSTEM AND SATISFACTION
WITH REFERENCE TO BHARATH SANCHAR NIGAM LIMITED” carried out by me for
the partial fulfillment for the award of degree of Master of Business Administration

(MBA) under JNTUK. This project work was undertaken as a part of academic curriculum
according to the JNTUK norms and it has no commercial interest and motive. It is my original
work. It is not submitted to any other University/Institution for any other purpose.

Place: Rajahmundry

Date:

CHEBOLU LAKSHMI SUSMITHA

(Regd. No.17551E0016)

`
 GODAVARI INSTITUTE OF ENGINEERING AND TECHNOLOGY (A)

DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that the Project work entitled – “A Study on EFFECTIVENESS ON

PERFORMANCE APPRAISAL SYSTEM AND SATISFACTION with reference to “BHARATH
SANCHAR NIGAM LIMITED RAJAHMUNDRY” that is being Submitted by CHEBOLU
LAKSHMI SUSMITHA in partial fulfillment for the award of Master of Business Administration to
the JNTUK, is a record of bonafide work carried out by him under our guidance and supervision.

The result presented in this project have not been submitted to any other university or
institute for the award of any degree or diploma.

Head of the Department Signature of the Guide

External Examiner
 ACKNOWLEDGEMENT

I would like to express my profound sense of gratitude to Dr. R.D.GOODWIN, for his expert
guidance, Constructive suggestions and encouragement.

I would like to express my sincere thanks to Dr P R K RAJU Director, DMS, GIET

Rajahmundry for extending every possible help during the course of the study.

I earnestly express my sincere gratitude to BHARATH SANCHAR NIGAM LIMITED,

RAJAHMUNDRY for providing Industry exposure through my study P.APPARAO is very
supportive in completion of my study.

I am also thankful to Dr. T V PRASAD, Principal GIET (A). Rajahmundry for his support
and encouragement during the course of my study.

I am also thankful to Management, GIET, Rajahmundry for extending every possible help
during my course of study.

I am very much thankful to my family members & friends for their support and encouragement
without which I wouldn’t have been the person I am now to complete my project work.

CHEBOLU LAKSHMI SUSMITHA

( Regd.No.17551E0016)
INDEX

CHAPTER-I _______________________________________ I
INTRODUCTION 1-2
(A DETAILED REPORT ON INTRODUCTION IS ANNEXTURED)

CHAPTER-II ______________________________________________________________ II
ORGANIZATIONAL PROFILE 3-6
(A DETAILED REPORT ON COMPANY PROFILE IS ANNEXTURED)

CHAPTER-III ____________________________________________________________ III

PROBLEM DESCRIPTION 7
THEORETICAL FRAMEWORK OF THE STUDY 8-16
(A DETAILED REPORT ON THEORETICAL FRAMEWORK IS ANNEXTURED)

SCOPE OF THE STUDY 17

OBJECTIVE OF THE STUDY 18
NEED FOR THE STUDY 19

CHAPTER-IV ____________________________________________________________ IV
SOURCE OF DATA: 20

CHAPTER-V _____________________________________________________________V
DATA ANALYSYS & INTERPRETATION 21- 40
FINDINGS: 41-42

CHAPTER-IV ____________________________________________________________ IV
LIMITATIONS OF THE STUDY 43
SUGGESTIONS 44-45
CONCLUSION 46

ANNEXTURE
QUESTIONNARIE

REFERENCE
 ABSTRACT

One of the main concerns of each organization should be positively positive to the achievement of its
objective. Organizational production is often equated with managerial efficiency. A executive can guarantee the
effectiveness of the organisation. Therefore, it is forever necessary that the executive control and the
presentation of the employees.

In addition, given that the association exists to attain the objectives, the degree of victory so as to
workers have to conquer this goal is important to determine the effectiveness of the association. this is a
fundamental part of the management of human resources. This leads to the concept of performance appraisal.

The objective is to know how effective is the implementation of the assessment system. The goal of
most outcome evaluation programs is to encourage employees to set their own goal for the next stage of time
after reviewing their previous performance. allows running to make effective decisions. In the present study,
we have tried to know the reality. in the present study, we have tried to know the current implementation of
performance evaluation techniques in general and some other aspects, such as the consciousness of workers and
the effectiveness of the evaluation system in particular.
 LIST OF TABLES

S.No Title of table Page. No

1. Opinion towards organizational focus and commitment on 21
performance appraisal
2. Employee opinion towards best appraisal method 23
3.
Employee satisfaction to the feedback on performance superiors 25

4. Employee opinion to express and share their problems and 27

dillficulties in key performance areas
5. Employee response towards working opportunities for 29
various tasks
6. Employee feedback towards task achievement 31
7. Employee opinion on successful completion tasks on or 33
before periodic reviews
8. Employee satisfaction towards existing towards appraisal 35
system
9. Employee opinion on the criteria for promotions 37
10. Employee opinion of administering self-appraisal of the 39
organization
 LIST OF FIGURES

S.NO TITLE PAGE.NO

Pie diagram for employee opinion towards
1. 22
organizational performance
Pie diagram of employee opinion towards best
2. 24
appraisal method
Pie diagram for employee satisfaction on performance
3. 26
by superiors
Pie diagram for employee opinion to express and share
4. 28
the problems and difficulties of key performance areas
Pie diagram for employee response towards working
5. 30
opportunities their skills on various tasks
Pie diagram for employee feedback and appreciation
6. 32
towards task achievement
Pie diagram for employee opinion on succesful
7. 34
completion task on or before periodic reviews
Pie diagram for employee satisfaction towards existing
8. 36
performance appraisal system
Pie diagram for employee opinion on the criteria for
9. 38
promotions
Pie diagram for employee opinion of adminstering self-
10. 40
appraisal of the organization
 Abbreviations

 ABD - Adhilabad

 ATP - Ananthapur

 CTR - Chittor

 CDP - Cuddapah

 EG - East Godhavari

 GTR - Guntur

 HYD - Hyderabad

 KAA - Karimnagar

 KHM - Kammam

 KRI - Krishna

 KNM - Kurnool

 MBN - Mahbubnagar

 MDK - Medhak

 NGD - Nalgonda

 NL - Nellore

 NZB - Nizamabad

 PKM - Prakasham

 SKL - Srikakulam

 VSP - Vishakapatnam

 VZM - Vizianagaram

 WL - Warangal

 WG - West godavari
 NOMENCLATURE

VESTIBULE TRAINING:
The vestibule training is one of the methods of training,
where the technical staff ,especially those who deal with the tools and machinery , are given
the job education training in the workplace other than the main production plant.

EMPLOYEE RETENTION:
Employee retention refers to the various policies and
practices which let the employees stick to an organization for a longer period of time.

ORGANIZATIONAL PRODUCTIVITY:

Organizational productivity is the

capacity of an organization, institution, or business to produce desired results with a
minimum expenditure of energy, time, money, personnel, material, etc.
 Chapter-1

INTRODUCTION
 INTRODUCTION

Performance appraisal is the systematic evaluation of the individual with respect to his or her
and performance in the job analysis the potential for development.So it is on the job
performance and what one can deliver into the future. When we are trying to do this it can be
one can do it with two basic purposes.

1)Administrative

2)Developmental

Administrative: When we talk about adiministrative view salary decisions,emotional

decisions,tranfers decisions, and layoff decisions.

Developmental: Development needs are being proceed much more into this organisation and
here we trying the diagnoses and it also see how appraisal can be use for carrer planning
&carrer development.

When performance appraisal

What do u appraise:

If individual thoughts have certain traits obviously it would result in performance so

subjective judgements about done with respective to the employees performance so rather
than measuring the performance it was much more trait based approaches,so often the
perception of the bosses were involved whether the individual this group well dresses,well
punctuality,the style of expression and many of these things were also approved as a part of
the kind of trait based approaches.

When we are looking for the trade people mooved into behavioural appraisal they focus more
on observabal aspects of the performance so that we can see the workers kept his tools
properly whether he is coporating with the other workers,co-workers,many of these
behavioural things we are also considered the part of the appraisal process,but then at times it
was confusing from comparing one aspect to the other but all the people also did not proceed
the ratings real measuring what its suppose to measure so the result it was the aspects of
validity issues then the third interms of the based on the results so the appraisal is based on
the results so that means people also talked about management by objectives or appraisal by
objectives so then we look at the production data then we are able to link at the piece red
bases that individual has contributed so where ever the measurements are very clear
appraisals are good.The results based appraisals objectives

based appraisal also helped in many ways but then many other type objectives are not well
understood and well appreciater and that is were the goal setting as well as the participation
got a praised now that was thought as a management by objectives.

Management by objectives:

Subordinate and supervisor agree on specific performance goals and then develop a plan for
attempting this or attaining these goals and they also identify critieria for determining
whether the goals have been reached or not.

So in MBO approach there was a join goal setting,joint review as well as remnant on the
specific of goal achievements and this was an another step where the appraisal and the
appraise did not bother about the qualities,the specific behaviours which can be link to the
results but rather than the focussed on what are the deliverables and understand the analyzing
deliverables as a part of the planning process,and the agreement we compare with actuals of
how much has been done.I think that also helped.

MBO as a kind of a control mechanisms,now when MBO was over emphasized that a contrl
mechanism it feels interms of a appraisal mechanisms because people”s started pushing their
objectives as much down as possible and then the subordinates were very strong and the
bosses were week.

Week it use to resulting sub optimal level kind of performance so when MBO was killed it
some sense MBO did not take because of several reasons but it was very useful when
managers wanted to empower employees when they want to do give descrition to the
employees to think agree and achieve and managers were working as a kind of a bounching
so but the real difficulty was short-term achievements and many other times ignore long-term
goals of the organization so that means some times the quality was compromised,quantity
was over emphasized but not take the responding delivery collection things like that so the
organisation proceed some gaps in performance because it was not very well understood.
 CHAPTER-2

ORGANIZATIONAL
PROFILE
 PROFILE OF BHARATH SANCHAR NIGAM LIMITED RAJAHMUNDRY

INTRODCUTION

History of broadcast communications industry began in 1851 when the main operational land
was lines were laid by the legislature close Calcutta (seat of British power). Telephone
utilities were presented in Indian in 1881. In 1883 telephone utilities were converged with the
postal framework. Indian radio broadcast organization (IRT) was shaped in 1923. After
freedom in 1947; all the outside media transmission organizations were nationalized to frame
the posts, phone and broadcast (PTT) a restraining infrastructure kept running by the
administration's service of correspondences. Telecom division was considered as vital
administrations and the legislature claimed organizations were made: the vides Sanchar
Nigam Limited (VSNL) for worldwide media communications and Mahan agar Telephone
restricted (MTNL) for administration in metropolitan zones.

Bharat Sanchar Nigam Ltd. was incorporated on fifteenth Sep 2000 . It took over the business
of providing of telecommunication services and network management from the erstwhile
Central Government Departments of telecommunication Services (DTS) and
telecommunication Operations (DTO), with impact from first October‘ 2000 on going
concern basis.It is one among the most important & leading public sector units providing
comprehensive vary of telecom services in india.

BSNL is one in all major service supplier in its license space. the corporate offers wide move
& most clear tariff schemes designed to suit each client. BSNL has ninety four.36 million
cellular .02 million WLL customers as on thirty one.10.2016. 3G Facility has been given to
all or any 2G connections of BSNL. In basic services, BSNL is miles earlier than its rivals,
with 13.88 million wireline phone subscribers i.e. 56.96% share of the wire line subscriber
base.
BSNL has originated a world category multi-gigabit, multi-protocol convergent information
processing infrastructure that gives convergent services like voice, information & video
through identical Backbone & Broadband Access Network. at this time there ar twenty
one.86 million broadband customers together with each wireline & wireless broadband.
The company has large expertise in designing, installation, network integration &
maintenance of shift & transmission networks contains a world category ISO 9000 certified
medium coaching Institute.
During the 2015-16, turnover of BSNL is around Rs. 32,919 Crores.
Major Market Trends:

The telecoms slants in India will greatly affect everything from the unassuming PC, web,
broadband ( both remote and fixed), and link, handset highlights, talking SMS, IPTV, delicate
switches, and oversaw administrations to the nearby assembling and inventory network. This
report examines key patterns in the Indian telecom industry, their drivers and the real effect
of such patterns influencing portable administrators, framework and handset sellers.

WIRELESS SERVICES IN INDIA:

The Mobile media communications framework in India is the second biggest on the planet
and it was Tossed open to private players during the 1990s. The nation is partitioned into
multiple zones, called hovers (generally along state limits). Government and a few private
playes run neighborhood and long separation telephone utilities. Rivalry has made costs drop
and calls crosswise over India are one of the least expensive on the planet. The rates should
go down further with new-measures to be taken by the Information Ministry. The versatile
administration has seen wonderful development since 2000. In September 2004, the
quantities of cell phone associations have crossed fixed-line associations. India
fundamentally pursues the GSM portable framework, in the 900 MHz band. Ongoing
administrators likewise work in the 1800 MHz band. The predominant players are Airtel,
Aircel, Uninor, Reliance Infocomm, Vodafone, Idea cell andBSNL/MTNL. There are
numerous littler players, with tasks in just a couple of states. Worldwide meandering
understandings exist between most administrators and numerous outside bearers.

CURRENT STATUS:

Bharat Sanchar Nigam Limited (truncated BSNL) is an Indian state possessed media
communications organization headquartered in New Delhi. It was fused on 15 September
2000 and expected the matter of giving telecom administrations and system the board from
the recent Central Government Departments of Telecom Services (DTS) and Telecom
Operations (DTO) starting at 1 October 2000 on a going-concern premise. It is the biggest
supplier of fixed communication and broadband administrations with over 60% piece of the
overall industry, and is the fourth biggest versatile communication supplier in India. BSNL
then scontinued the broadcast benefits in India until it shut down transmit benefits totally in
July 15, 2013.

VISION:

• Be the leading telecommunication service supplier in Bharat with world presence.

• Create a customer targeted organization with excellence in client care, sales and
promoting.

• Leverage technology to supply reasonable and innovative telecommunication.

Services/products across customer segments.

MISSION:

• Turning into the foremost trusty, most popular and admired telecom complete

• Providing reliable medium services that ar worth for cash

• Generating worth for all stakeholders – workers, shareholders, vendors & business
associates

• Excellence in customer service -friendly, reliable, time bound, convenient and courteous
service

• Giving totally differentiated products/services tailored to different service segments

• Developing a promoting and sales culture that's attentive to customer desires

• To explore International markets for world presence

• Increasing come back on existing assets with sustained specialise in profitableness

• Dynamic policies and processes to change clear, fast and economical deciding.

OBJECTIVES:

 To increasing sales revenue with specialize in subscriber retention & acquisition by

manner of strengthening sales , quality of service and client delivery
 Accelerate the pace of enlargement of mobile services with up-gradation of
technology
 Increasing BSNL visibility in urban, sub-urban and rural areas
 Developing sales and promoting team with angle towards client care
 To boost client care by reducing fault rate, upgrading client service Centres (CSCs)
and introducing convergent charge
 Providing a causative work setting with sturdy specialize in performance to boost
client delight towards BSNL services
  Leverage information services to extend BSNL’s customer’s base & revenues by
providing higher bandwidths capabilities for wire line and wireless broadband
customers
 To strengthen company’s finances by paid utilization of its assets through sharing /
monetisation of existing infrastructure like land, building and sharing of passive
infrastructure like towers etc.
 Making Wi-Fi Hot Spots and substitution gift wire line exchanges by Next
Generation Network.
 Increasing the reach of fiber network around the client premises notably in living
accommodations complexes through FTTH so as to fulfill the ever increasing
information measure demand for each information & video applications
 To leverage the prevailing infrastructure of BSNL thereby conducive towards nation
building by facilitating the execution of presidency programmes and initiatives viz.
National fiber Network (NOFN), Network for Spectrum (NFS), and lodging on
sensible town conception
 To boost productivity by coaching and ability development and deployment of gift
workforce
 Developing data pool exposed to latest technological advancements
 To explore opportunities in international telecommunication in developing markets
 To become most popular service supplier to the govt. for reliable and secure service
Network and to serve National security interests.

CURRENT STATUS:

The present CMD is not kidding about bringing BSNL out of the misfortune making mode.
Yet, at ground level legitimate coordination is as yet ailing in taking the BSNL items to the
supporters entryway step. The present CMD is strenuously trying endeavors to give 4G
availability on all India bases by tweaking the current 2G/3G versatile transmission types of
gear and furthermore mentioned government to dispense 4G range on all India premise. How
far these two activities will be practiced by him is to be seen by pausing. In the event that
each goes as per his arrangement, at that point BSNL will be out of the forested areas by
2020 and will turn into a benefit making one. At present the expansion in income is
originating from the portable wing and endeavor business arranging segment. Pay from
Landline is on decrease.
CHAPTER-3

BASIS FOR THE

PROJECT
 BASIS FOR PROJECT

Statement of the problem:

Performance Appraisal is the systematic assessment of the performance of personnel and to

apprehend the abilties of someone for in addition boom and improvement.

Research indicates that personnel need recognition of their abilties,attributes performance

appraisal will examine the employee overall performance . As a result, the appraisal are in all
likelihood to improve employees’ evaluations of the company and, extra importantly,
possibly to beautify character well-being. Many top managers have emerge as exceedingly
inquisitive about the psychological and behavioral factors of benefits administration.This
area, which assumes that people are constantly irrational, is developing dramatically in the
human useful resource control area. Many agencies are beginning to contain elements of
overall performance appraisal (merchandising,reimbursement,motivation etc.) within the
control of worker blessings.

The development of the organization relies upon on the Employee. So, Employee is liable
for leading the business enterprise correctly. At gift scenario, if the employee has activity
delight, management and the employer may be in higher role. So it's far very essential to take
a look at the performance appraisal. To hold facts so one can determine repayment programs,
wage shape, salaries increases, and many others.Overall performance wanted. To provide a
remarks to employees regarding their overall performance and related status. All those factors
are taken into consideration on this research and provide required information to the BSNL.
 THEORITICAL FRAME WORK

Main features:

A performance appraisal is a systematic general and periodic process that assesses an

individual employee's job performance and productivity in relation to certain pre-
established criteria and organizational objectives. Other aspects of individual employees
are considered as well, such as organizational citizenship behaviour accomplishments,
potential for future improvement, strengths and weaknesses, etc.

To collect PA data, there are three main methods: objective production, personnel, and
judgmental evaluation. Judgmental evaluations are the most commonly used with a large
variety of evaluation methods. Historically, PA has been conducted annually (long-cycle
appraisals); however, many companies are moving towards shorter cycles (every six
months, every quarter), and some have been moving into short-cycle (weekly, bi-weekly)
PA. The interview could function as "providing feedback to employees, counseling and
developing employees, and conveying and discussing compensation, job status, or
disciplinary decisions".

PA is often included in performance management systems. PA helps the subordinate

answer two key questions: first, "What are your expectations of me?" second, "How am I
doing to meet your expectations?"

Performance management systems are employed "to manage and align" all of an
organization's resources in order to achieve highest possible performance."How
performance is managed in an organisation. determines to a large extent the success or
failure of the organization. Therefore, improving PA for everyone should be among the
highest priorities of contemporary organizations".

Some applications of PA are compensation, performance improvement, promotions,

termination, test validation, and more. While there are many potential benefits of PA,
there are also some potential drawbacks. For example, PA can help facilitate
management-employee communication; however, PA may result in legal issues if not
executed appropriately, as many employees tend to be unsatisfied with the PA process.
PAs created in and determined as useful in the United States are not necessarily able to
be transferable cross-culturally.

Applications of results

A central reason for the utilization of performance appraisals (PAs) is performance

improvement ("initially at the level of the individual employee, and ultimately at the
level of the organization").Other fundamental reasons include "as a basis for employment
decisions (e.g. promotions, terminations, transfers), as criteria in research (e.g. test
validation), to aid with communication (e.g. allowing employees to know how they are
doing and organizational expectations), to establish personal objectives for training"
programs, for transmission of objective feedback for personal development, "as a means
of documentation to aid in keeping track of decisions and legal requirements" and in
wage and salary administration. Additionally, PAs can aid in the formulation of job
criteria and selection of individuals "who are best suited to perform the required
organizational tasks". A PA can be part of guiding and monitoring employee career
development. PAs can also be used to aid in work motivation through the use of reward
systems.

Potential benefits

There are a number of potential benefits of organizational performance management

conducting formal performance appraisals (PAs). There has been a general consensus in
the belief that PAs lead to positive implications of organizations. Furthermore, PAs can
benefit an organization’s effectiveness. One way is PAs can often lead to giving
individual workers feedback about their job performance. From this may spawn several
potential benefits such as the individual workers becoming more productive.

Other potential benefits include:

 Facilitation of communication: communication in organizations is considered an

essential function of worker motivation. It has been proposed that feedback from
PAs aid in minimizing employees’ perceptions of uncertainty. Fundamentally,
feedback and management-employee communication can serve as a guide in job
performance.
  Enhancement of employee focus through promoting trust: behaviours, thoughts,
and/or issues may distract employees from their work, and trust issues may be
among these distracting factors. Such factors that consume psyclogical energy can
lower job performance and cause workers to lose sight of organizational goals.
Properly constructed and utilized PAs have the ability to lower distracting factors
and encourage trust within the organization.
 Goal setting and desired performance reinforcement: organizations find it
efficient to match individual worker’s goals and performance with organizational
goals. PAs provide room for discussion in the collaboration of these individual
and organizational goals. Collaboration can also be advantageous by resulting in
employee acceptance and satisfaction of appraisal results.
 Performance improvement: well constructed PAs can be valuable tools for
communication with employees as pertaining to how their job performance stands
with organizational expectations. "At the organizational level, numerous studies
have reported positive relationships between human resource management
(HRM) practices" and performance improvement at both the individual and
organizational levels.
 Determination of training needs: “Employee training and development are crucial
components in helping an organization achieve strategic initiatives”. It has been
argued that for PAs to truly be effective, post-appraisal opportunities for training
and development in problem areas, as determined by the appraisal, must be
offered. PAs can especially be instrumental for identifying training needs of new
employees. Finally, PAs can help in the establishment and supervision of
employees’ career goals.

Potential complications

Despite all the potential advantages of formal performance appraisals (PAs), there are
also potential drawbacks. It has been noted that determining the relationship between
individual job performance and organizational performance can be a difficult task.
Generally, there are two overarching problems from which several complications spawn.
One of the problems with formal PAs is there can be detrimental effects to the
organization(s) involved if the appraisals are not used appropriately. The second problem
with formal PAs is they can be ineffective if the PA system does not correspond with the
organizational culture and system.

Complications stemming from these are:

 Detrimental to quality improvement: it has been proposed that the use of PA

systems in organizations adversely affect organizations’ pursuits of quality
performance. It is believed by some scholars and practitioners that the use of PAs
is more than unnecessary if there is total quality management.
 Subjective evaluations: Traditional performance appraisals are often based upon a
manager's or supervisor's perceptions of an employee's performance and
employees are evaluated subjectively rather than objectively. Therefore the
review may be influenced by many non-performance factors such as employee
'likeability', personal prejudices, ease of management, and/or previous mistakes or
successes. Reviews should instead be based on data-supported, measurable
behaviours and results within the performers control.
 Negative perceptions: "Quite often, individuals have negative perceptions of
PAs". Receiving and/or the anticipation of receiving a PA can be uncomfortable
and distressful and potentially cause "tension between supervisors and
subordinates". If the person being appraised does not trust their employer,
appraiser or believe that they will benefit from the process it may become a "tick
box" exercise.
 Errors: Performance appraisals should provide accurate and relevant ratings of an
employee’s performance as compared to pre-established criteria/goals (i.e.
organizational expectations). Nevertheless, supervisors will sometimes rate
employees more favorably than that of their true performance in order to please
the employees and avoid conflict. "Inflated ratings are a common malady
associated with formal" PA.
 Legal issues: when PAs are not carried out appropriately, legal issues could result
that place the organization at risk. PAs are used in organizational disciplinary
programs as well as for promotional decisions within the organization. The
improper application and utilization of PAs can affect employees negatively and
lead to legal action against the organization.
  Performance goals: performance goals and PA systems are often used in
association. Negative outcomes concerning the organizations can result when
goals are overly challenging or overemphasized to the extent of affecting ethics,
legal requirements, or quality. Moreover, challenging performance goals can
impede an employees’ abilities to acquire necessary knowledge and skills.
Especially in the early stages of training, it would be more beneficial to instruct
employees on outcome goals than on performance goals.

 Derail merit pay or performance-based pay: some researchers contend that the
deficit in merit pay and performance-based pay is linked to the fundamental
issues stemming from PA systems.

Improvements

Although performance appraisals can be so easily biased, there are certain steps that can
be taken to improve the evaluations and reduce the margin of errors through the
following:

 Training - Creating an awareness and acceptance in the people conducting the

appraisals that within a group of workers, they will find a wide range in
difference of skills and abilities.
 Providing Feedback to Raters - Trained raters provide managers who evaluated
their subordinates with feedback, including information on ratings from other
managers. This reduces leniency errors.
 Subordinate Participation - By allowing employee participation in the evaluation
process, there is employee-supervisor reciprocity in the discussion for any
discrepancies between self ratings and supervisor ratings, thus, increasing job
satisfaction and motivation.

Opposition

Not everyone is in favor of formal performance appraisal systems. Many employees,

especially those most affected by such ratings are not very enthusiastic about them. There
are many critics of these appraisals including labor unions and managers.
Labor Unions

Labor Unions represent 11 % (7% in the private sector) of the work force in the United
States. In some cases they may require that seniority be taken as one of the main criteria
for promotion. However, length of job experience may not always be a reliable indication
of the ability to perform a higher level job. That is why some employers give senior
people the first opportunity for promotion, but the employer may seek to further qualify
the employee for that promotion because of their abilities (not solely because of length of
service). Performance appraisals may provide a basis for assessment of employee merit
as a component of these decisions.

Managers

Managers who have had unsatisfactory experiences with inadequate or poorly designed
appraisal programs may be skeptical about their usefulness.

 Some managers may not like to play the role of a judge and be responsible for the
future of their subordinates.
 They may be uncomfortable about providing negative feedback to the employees.
 This tendency can lead them to inflate their assessments of the workers’ job
performance, giving higher ratings than deserved.

Conduct

Human resource management(HRM) conducts performance management. Performance

management systems consist of the activities and/or processes embraced by an
organization in anticipation of improving employee performance, and therefore,
organizational performance. Consequently, performance management is conducted at the
organizational level and the individual level. At the organizational level, performance
management oversees organizational performance and compares present performance
with organizational performance goals.

The achievement of these organizational performance goals depends on the performance

of the individual organizational members. Therefore, measuring individual employee
performance can prove to be a valuable performance management process for the
purposes of HRM and for the organization. Many researchers would argue that
"performance appraisal is one of the most important processes in Human Resource
Management.”

The performance management process begins with leadership within the organization
creating a performance management policy. Primarily, management governs performance
by influencing employee performance input (e.g. training programs) and by providing
feedback via output (i.e. performance assessment and appraisal).

"The ultimate objective of a performance management process is to align individual

performance with organizational performance".A very common and central process of
performance management systems is performance appraisal (PA). The PA process should
be able to inform employees about the "organization's goals, priorities, and expectations
and how well they are contributing to them".

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. Non formal
performance appraisals may be done more often, to prevent the element of surprise from
the formal appraisal.
Methods of collecting data

There are three main methods used to collect performance appraisal (PA) data: objective
production, personnel, and judgmental evaluation. Judgmental evaluations are the most
commonly used with a large variety of evaluation methods.

Objective production

The objective production method consists of direct, but limited, measures such as sales
figures, production numbers, the electronic performance monitoring of data entry
workers, etc. The measures used to appraise performance would depend on the job and its
duties. Although these measures deal with unambiguous criteria, they are usually
incomplete because of criterion contamination and criterion deficiency.

Criterion contamination refers to the part of the actual criteria that is unrelated to the
conceptual criteria. In other words, the variability in performance can be due to factors
outside of the employee’s control. Criterion deficiency refers to the part of the conceptual
criteria that is not measured by the actual criteria. In other words, the quantity of
production does not necessarily indicate the quality of the products.

Both types of criterion inadequacies result in reduced validity of the measure. Regardless
of the fact that objective production data is not a complete reflection upon job
performance, such data is relevant to job performance.

Happy-productive worker hypothesis

The happy-productive worker hypothesis states that the happiest workers are the most
productive performers, and the most productive performers are the happiest workers. Yet,
after decades of research, the relationship between job satisfaction and job performance
produces only a weak positive correlation. Published in 2001 by Psychological Bulletin, a
meta-analysis of 312 research studies produced an uncorrected correlation of 0.18. This
correlation is much weaker than what the happy-productive worker hypothesis would
predict.
Personnel

The personnel method is the recording of withdrawal behaviours (i.e. absenteeism,

accidents). Most organizations consider unexcused absences to be indicators of poor job
performance, even with all other factors being equal; however, this is subject to criterion
deficiency. The quantity of an employee’s absences does not reflect how dedicated
he/she may be to the job and its duties. Especially for blue-collar jobs accidents can often
be a useful indicator of poor job performance, but this is also subject to criterion
contamination because situational factors also contribute to accidents.

Once again, both types of criterion inadequacies result in reduced validity of the measure.
Although excessive absenteeism and/or accidents often indicate poor job performance
rather than good performance, such personnel data is not a comprehensive reflection of
an employee’s performance.
 SCOPE OF THE PROJECT

The study was going to be conducted in BHARAT SANCHAR NIGAM LTD.

RAJAHMUNDRY on Performance Appraisal System. The present study includes the
sources utilized by BSNL internally. I find a lot of scope to study my topic in this
organisation. All the environments are found to be provided well opportunity to me.

 To be instrumental in helping employees to better understand their

strengths and weakness with respect to their role and functions in the
organisation.
 To help in identifying the developmental needs of employees, given their role and
function.
 To provide an opportunity to each employee for self-reflection and individual
goal-setting, so that individually plane and monitored development takes place.
 To help prepare employees for higher responsibilities in the future by
continuously reinforcing the development of the behaviour and qualities
required for higher-level positions in the organisation. To assist in a variety of
personnel decisions by periodically generating data regarding each employee.
 NEED FOR THE STUDY

Study is needed in order to

 Provide information about the performance ranks.

 Provide feedback information about the level of achievement and behaviour of

the subordinates.
 Provide information, which helps to counsel the subordinates.

 Provide information to diagnose deficiency in the employee regarding skills,

knowledge, determine training and developmental needs and to prescribe the
means for employee growth provides information for correcting placement.
 OBJECTIVES OF THE PROJECT

The main objective of the project is to study, understand,and observe the theortical
concepts with that of practical application at BSNL.

1. To study and understand the existing annual performance appraisal system at

BSNL.
2. To study& analyze different performance apprasial schemes provided by the
organization.
3. To study and evaluate the effective implementation of the system & overall rating
during the apprisal period.
4. To study and assess the performance feedback and counselling system for
employee in the organisation.
5. To suggest possible recommendation if any after finding the gaps.
 Chapter-4
DATA HANDLING
 DATA HANDLING

METHODOLOGY OF THE STUDY

SOURCES OF DATA

The sources for collecting the data are from both

 Primary data

 Secondary data

PRIMARY DATA

Primary data was collected directly from people and organization via.
Questionnaire on project before being analyse to reach conclusion concerning the
issue covered in the project. The primary data is collected information obtained during
discussion with the head of the departments, the official and staff. It is collected in the
firm of preparing questionnaire on employee performance appraisal.

SECONDARY DATA

Secondary data means that the data is obtained indirectly from sources such as
records of the company, journals, reference books, computer data base etc., It is also
somewhat collected from the important document by the organization. The data is
collected through the internet

SAMPLE SIZE

The sample size is 55 employees and the method chosen is random sampling method.
CHAPTER-5
RESULTS
&
DISCUSSIONS
 RESULTS&DISCUSSIONS

DATA ANALYSIS AND INTERPRETATION

1. Employee opinion towards organizational focus and commitment

on performance appraisal

ATTRIBUTES RESPONDENTS PERCENTAGE (%)

Strongly agree 23 41

Agree 18 32

Strongly disagree 10 18

Disagree 4 9

Total 55 100

INTERPRETATION: From the above table and chart it is found that 41% respondents
strongly agree towards organisational focus and significance on performance appraisal
system and ,32% respondents agree and 18% respondents strongly disagree, whereas 9%
of respondents disagree with respect to the present apprisal system and its procedures.
GRAPHICAL REPRESENTATION:

Sales

18
41 strongly agree
agree
strongly disagree
disagree

32
2. Employee opinion towards best appraisal method

ATTRIBUTES RESPONDENTS PERCENTAGE (%)

Through rating scale 23 42

Through grading system 15 27

Through rank system 17 31

Through other methods 0 0

TOTAL 55 100

INTERPRETATION: From the above table and chart we found that 42% of respondents
felt that the management rate the performance of employees through rating scale, 31%
said through rank system, 27% said through grading system & none of them responded to
other methods.
GRAPHICAL REPRESENTATION:

0%

31% Through rating scale

42%
Through grading system

Through rank system Through

other methods

27%
3. Employee satisfaction with respect to the feedback on performance
by superiors

ATTRIBUTES RESPONDENTS PERCENTAGE (%)

Highly satisfied 21 38

Satisfied 15 27

Neutral 10 18

Dissatisfied 6 11

Highly dissatisfied 3 6

Total 55 100

INTERPRETATION: From the above table and chart it is found that a mjority of
employees i.e., 38% feel that their work performance and recognition by supeirors is
highly satisfory, 27% are satisfied,18%are neutral, 11% are dissatisfied &6% of highly
dissatisfied.
 GRAPHICAL REPRESENTATION

11

38
highly satisfied
satisfied
neutral
18
dissatisfied
highly satisfied

27
4. Employees opinion on existence of friendly atmosphere to express and share
their problems and difficulties in key performance areas

ATTRIBUTES RESPONDENTS PERCENTAGE (%)

Strongly Agree 19 35

Agree 15 27

Neutral 11 20

Strongly Disagree 6 11

Disagree 4 7

TOTAL 55 100

INTERPRETATION: From the above table and chart we found that 35% of respondents
felt that they can not express all the difficulties and problems they face regarding their
performance &achievements of key performance areas, 27% are agree,20% are neutral,
11% are strongly disagree & 7% are disagree.
GRAPHICAL REPRESENTATION

percentage

11

35
strongly agree
agree
neutral

20 strongly disagree
disagree

27
5. employee feedback on due recognitioin and appreciation towards
task achievements

ATTRIBUTES RESPONDENTS PERCENTAGE (%)

Always 44 80

Sometimes 11 20

Not at all 0 0

TOTAL 55 100

INTERPRETATION: From the above table and chart we found that 80% of respondents
felt that an employees can be appraised based on his/her performance, if he does a very
good job, 20% felt sometimes and none of them felt not at all.
GRAPHICAL REPRESENTATION

0%

20%

Always

Sometimes

Not at all
80%
6. Employee satisfaction towards effectiveness of existing performance
appraisal system

ATTRIBUTES RESPONDENTS PERCENTAGE (%)

Very good 9 17

Good 28 51

Average 14 25

Need to be improved 4 7

TOTAL 55 100

INTERPRETATION: From the above table and chart we found that 51% of employees
felt good regarding the effectiveness of their performance appraisal system, 25% felt
average, 17% felt very good and 7% felt need to be improved.
 GRAPHICAL REPRESENTATION:

7%
17%

25% Very good

Good Average

Need to be improved

51%
7. Employee opinion on the crieria for promotions

ATTRIBUTES RESPONDENTS PERCENTAGE (%)

Personal relationship 0 0

Years of experience 15 27

Performance 21 38

All of them 19 35

TOTAL 55 100

INTERPRETATION: From the above table it is observed that from the sample size of 55
employees 38% of respondents felt that promotions in the organisation are based on
performance, 27% felt that it is years of experience and none of them felt personal
relationship and 35% of them felt all of them.
GRAPHICAL REPRESENTATION:

0%

27%
35%
Personal relationship

Years of experience

Performance

All of them

38%
8. Employee opinion on the ease of administering self-Appraisal of the
orgainization

ATTRIBUTES RESPONDENTS PERCENTAGE (%)

Extremely Difficult 21 38

Somewhat Difficult 16 29

Neutral 10 18

Somewhat Easy 7 13

Extremely Easy 1 2

Total 55 100

INTERPRETATION: From the above table and graph it is observed that 21% of
respondents felt that the self-appraisal is extremely difficult for every employee in the
organisation,16% felt somewhat difficult,10% were neutral, and 7% expressed it to be
somewhat easy,1% are felt extremly easy.
GRAPHICAL REPRESENTATION:

Percentage

2
13

38 extremly difficult
somewhat difficult
18
neutral
some what easy
exremly easy

29
9. Are you expecting any job enrichments in future reviews

ATTRIBUTES RESPONDENTS PERCENTAGE (%)

Yes 55 100

No 0 0

TOTAL 55 100

INTERPRETATION: From the above graph it is observed that all the respondents i.e.,
100% are expecting job enrichments in future reviews and there are none who didnot
expect any betterment in future review
GRAPHICAL REPRESENTATION:

0%

Yes

No

100%
10.Employee opinion on the provision of job guidance and training
provided by the superior

ATTRIBUTES RESPONDENTS PERCENTAGE (%)

Very adequate 14 26

Adequate 37 67

Inadequate 4 7

TOTAL 55 100

INTERPRETATION: From the above graph I observed that 67% of respondents felt
adequate regarding the job guidance and training provided by their superior, 26% felt
very adequate and 7% felt inadequate.
GRAPHICAL REPRESENTATION

7%

26%

Very adequate

Adequate

Inadequate

67%
 FINDINGS

1. It has been observed and found through the study analysis that a majority of
respondents, i.e. 41% of them expressing that the organisation is highly committed
and focussed towards appraisal to be a betterment tool to the employee. Only 32%
and 9% of repondents agreed to some extent and disaggred respectively towards the
same. Where as 18% of respondents expressed their disaggreement to be very strong
on the same aspect.
2. The following observations are drawn as findings from the analysis with respect to
the usage of rating scale towards performace, i.e., 42% expressing that rating scale
would be appropriate, 31% felt that rank system is apt and 27% opined that grading
system would be good.
3. It is estimated through the study and observations that as high as 38% of employees
expressed their satisfaction with respect to their superior’s feedback on individual
performance. Employees feel satisfied when they get due recognition to their efforts
and successful performance. Similarly about 27% are found to be satisfied with the
same aspect. A mere 18% like to remain neutral and the rest 17% expressed their
dissatisfaction towards the same.
4. With respect to the opinion on the atmosphere to share the problems and issues
with superiors, it has been found through analysis that, 35% felt that there is no
such environment to express freely and openly. Whereas 27% agreed and 20%
could not decide about the sharing of grievance on key performance areas
respectively. However a considerable 11% and 7% of respondents strongly
disagreed towards existence of any such environment in the organisation.
5. The following observations are drawn as findings from the analysis with respect to
the employee appraisal towards performance,i.e.,80% of respondents felt that they did
very good job based on their performance that an employee can be apprasied.20%
felt sometimes and none of them felt not at all about employee appraisal.
6. It has been observed and found through the study analysis that a majority of
respondents i.e.,51% felt good regarding the effectivenss of their performance
appraisal system,25% felt average towards the effectivenss of existing performance
appraisal system,17% felt very good and 7% felt need to be improved the existing
performance appraisal system.
7. With respect to the opinion the sample size of 55 employees,38% of respondents felt
that promotions in the organization are based on performance,27% felt years of
experience,remaining employees felt personal relationship and 35% of them felt all of
the above mentioned.
8. It has been observed and found through the study analysis that a majority of
respondents i.e., 38% felt that the self-appraisal is extremly difficult for every
employee in the organisation,29% felt somewhat difficult,18% were neutral 13%
expressed some what easy,2% are felt extremly easy.
9. The following observations are drawn as findings from analysis with respect to i.e.,
100% are expecting job enrichments in future reviews
10. With respect to the employees opinion on training i.e., 67% respondents felt it to be
adequate and regarding the job guidance and training provided by the superior,26%
felt very adequate and 7% are felt inadequate.
 CHAPTER-6

 Limitations

 Suggestions

 conclusion
 LIMITATION

As the take a look at revolves around the overall performance appraisal of human
sources elements the overall enterprise overall performance cannot be ascertained. In
spite of giving sincere and honest efforts there are several obstacles, that are as follows:

 The period of have a look at is brief, that is a primary constraint.

 The belief bias or mind-set of the respondents may additionally act as hurdles to
the have a look at.

 The sample length taken for the studies is small due to the constraint of time.

 Some of the personnel couldn't reveal tons of the facts for the worry of the
management.
 SUGGESTIONS

1. Organisation seem to be very keen on adminstering appriasal procedures and

tyring to keep the employees satisfied. However a marginal percentage of
employees expressed their displeasure towards the same and hence it is suggested
that the management should review its apprisal procedures and find out what
were the reactions of employees and make a better managiable apprisal system to
the satisfaction of the majority of workforce.

2. As it has been observed that employees differ with respect to the usage of rating
scale and expressed their interest towards different scales like ranking and
grading systems. Hence it would be suggestable that the management conducts
periodic discussions with expert employees in the organisation and arrive at a
conclusion with respect to an aggreable system of ranking performance

3. As it has been observed that employees expressed their satisfaction with respect
to their superior’s feedback on individual performance. Hence it would be
suggestable that the present system of feedback can be continued or could think
of making it flexible accroding to times that would make the employees feel
satisfied with their efforts and succesful performance

4. . By means of employee’s opinion on the atmosphere to share the problems and

issues with superiors, a majority of employees felt that there is no such
environment to express freely and openly so, it would be suggestable that
management should initiate some activites which provides environment to
express their opinions,problems and issues with superiors.
5. . By Means of the analysis with respect to the employee appraisal towards
performance it has been observed that the organisation did very good job based on
their performance employee can be appraised hence the organisation should maintain
this level.

6. Organisation seem to be very keen on adminstering employee satisfaction

towards effectiveness of existing performance appraisal system and trying to keep
the employees satisfied hence it would been suggested that monitoring of
individual performance of employees should be done regularly.

7. Since it has been found that employees have different perceptions towards the
criteria of getting promoted, the management is suggested that there should be a
 single transaparent policy of promoting the employees. This kind of practice
would eliminate ill feeling and removes all bias and encourages employee
towards working hard and be a performer.

8. As it has been revealed by majority of employees that administering self-

appraisal is extremly difficult, it would be suggested to the management to help
employees in developing user friendly system of self appriasal and ease the
operation of the same.

9. It is suggested that further training, motivation and development in the working

area is needed and the same is suggesged to be improved and to be monitored so
that employees can get the better job enrichment.

10. Those employees who felt inadequate because they are not clear in the job they
are doing. This is due to lack of job knowledge and lack of proper training. If
these two areas some improvemet is required and then surely every employee will
have a good opinion on the job guidance and training.
 CONCLUSION

As the performance appraisal gadget motivates the employees to gain the goals, the
management have to make the structures of performance appraisal extra definitely to the
employees. Technological advances mean that performance control is now not an
isolated HR initiative and can be integrated into our everyday lives.

Based on the big look at and evaluation I can say that the top control role needs
remarkable trade in the direction of the position of facilitator. Positive performance
appraisal for an organisation is an asset.
Where as poor the legal responsibility the equal way as correct employees are assets and
terrible a liability. Positive performance appraisal, whereas encourage the human beings
to enhance on the other hand supply an opportunity to the business enterprise to discover
the place of development/improvement in their assignments.

At BSNL, I discover that properly analysed goals are set and powerful performance
appraisal strategies implemented. All the techniques are honest and goal. Almost all of
the personnel are properly aware of what is expected of them, besides the decrease rank
personnel. There is need to praise the innovations and hints on merits. There is want of
constructive analysis of overall performance appraisal while deciding the training.