CHAPTER 1

INTRODUCTION

1.1

PERFORMANCE APPRAISAL

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

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

Following are the various functions of Human Resource Management that are essential for the effective functioning of the organization:

Recruitment Selection Induction Performance Appraisal Training & Development

Recruitment The process of recruitment begins after manpower requirements are determined in terms of quality through job analysis and quantity through forecasting and planning. Selection The selection is the process of ascertaining whether or not candidates possess the requisite qualifications, training and experience required. Induction a) Induction is the technique by which a new employee is rehabilitated into the changed surroundings and introduced to the practices, policies and purposes of the organization. 1.1.1 DEFINITION Performance Appraisal is defined as the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. It consists of all formal procedures used in working organizations and potential of employees. According to Flippo, Performance Appraisal is the systematic, periodic and an important rating of an employees excellence in matters pertaining to his present job and his potential for a better job. Relationship of Performance Appraisal and Job analysis Performance appraisal is a formal, structured system of measuring and evaluating an employees job related behaviors and outcomes to discover how

and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organisation, and society all benefit.

Job Analysis

Performance Standards

Performance Appraisal

Describes personnel

work

&

Translate job requirements into levels of acceptable or unacceptable performance

Describes the jobrelevant strengths & weaknesses of each individual

requirement

of a particular job

Job analysis sets out requirements, which are translated into performance standards, which in turn form the basis for performance appraisal.

1.1.2 Appraisal Process

Objectives Appraisal

of

Performance

Establish job expectations Design an Appraisal Programme Appraise Performance Performance Interview Use Appraisal Data for

Appropriate Purposes

(a)

Objectives of Appraisal: Objectives of appraisal include effecting promotions

and transfers, assessing training needs, awarding pay increases, and the like. The emphasis in all these is to correct the problems.

(b) Establish Job Expectations: This includes informing the employee what is expected of him or her on the job. Normally, a discussion is held with his or her superior to review the major duties contained in the job description. (c) Design Appraisal Programme: Designing an appraisal programmes poses several questions which needs answers: They are: (I) formal versus informal appraisal (ii) How performance is to be assessed? (iii) Who are the raters (iv) What problems are encountered? (v) How to solve the problems? (vi) What should be evaluated? (vii) When to evaluate (viii) What methods of appraisal are to be used?

Modern Appraisal Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. In many organizations - but not all - appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions. By the same token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.) Whether this is an appropriate use of performance appraisal the assignment and justification of rewards and penalties - is a very uncertain and contentious matter.

1.1.3 Characteristics of Performance Appraisal System: 1. Performance Appraisal is a process. 2. It is the systematic examination of the strengths and weakness of an employee in terms of his job. 3. It is scientific and objective study. Formal procedures are used in the study. 4. It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a definite plan. 5. The main purpose of Performance Appraisal is to secure information necessary for making objective and correct decision an employee. 1.1.4 Process of Performance Appraisal System: The process of performance appraisal: 1. Establishing performance standards 2. Communicating the Standards 3. Measuring Performance 4. Comparing the actual with the standards 5. Discussing the appraisal 6. Taking Corrective Action Limitations of Performance Appraisal System : 1. Errors in Rating 2. Lack of reliability 3. Negative approach 4. Multiple objectives 5. Lack of knowledge

Who conduct the Appraisal? Anyone familiar with the performance of individual employees such as: Supervisors who rate their employees; Employees who rate their supervisors; Team member who rate each other; Outside sources; Employees self appraisal; Multi source appraisal.

1.1.5 Methods in Performance Appraisal 1) Graphic Rating Method: It allows the rater to mark an employees performance on a continuum. There are two types of graphic ratings. The first and common type lists job criteria such as quantity of work, attendance, etc. the second assesses behavioral aspects, such as decision making, developing employees, etc. with the specific behaviors listed and effectiveness of each rated. Some obvious drawback can be noted. Often separate traits or factors are grouped together and the rate is given only one box to check. Another drawback occurs when the descriptive words sometimes used in the sales have different meanings to different rulers. Terms such as initiative dependability and cooperation are subject to many interpretations, especially if used in conjunction with words such as outstanding, average and poor. Graphic rating scale is easy to develop, but they encourage errors on the part of the raters, who may depend too heavily on the form to define performance.

2) Ranking Method: It lists all the employees from highest to lowest in performance. The primary drawback of the ranking method is that the size of the

differences among the individuals is not well defined. This drawback can be overcome to some extent by assigning points to indicate the size of the gaps.

3) Narrative Method: Managers and HR specialists frequently are required to provide written appraisal information. Documentation and description are the essence of the essay and the field review methods. Critical Incident: The manager keeps a written record of both highly favourable and unfavorable actions in employees performance during the entire rating period. When a critical incident occurs, the manager writes it down. The drawbacks of it are, first not at all supervisor define what constitutes a critical incident in the same way. Also producing daily or weekly written remarks about each employees performance take considerable time. Further, employees may become overly concerned about what their superiors write and began to fear the managers black book.

4) Essay: It requires a manager to write a short essay describing each employees performance during the rating period. Some essays are free form, while other are more structured formats and use prepared questions that must be answered. This format allows the rater more flexibility than other methods do. The effectiveness depends on the supervisors ability to write. Behaviorally anchored rating scale: it combines the benefits of narratives, critical incidents and qualified scales by anchoring a rating scale with specific behavioral examples of good or poor performance. It proponents says it provides better, more equitable appraisals than the other tools.

5) Field Review Method: In the field review method an employee is not appraised by his direct supervisor but by another person, usually from HR department. The basic idea is that such a person may take more objective view in appraisal as he is not under pressure as the supervisor of the employee may be. The rater in this case, appraises the employee based on the records of

output and other information such as absenteeism, late coming, etc. This method is more suitable for the promotion of purposes. The chances of bias are reduced to a great extent as HR person is supposed to be trained in appraisal mechanism.

6) Management by Objectives: Although a basic technique, it has many interpretations. The application of this technique often succeeds or fails because of these interpretations. This is a basic system of appraisal, particularly at the managerial level, is a system of evaluation of managerial performance against the setting and accomplishing of verifiable objectives. The basic idea behind it is that the organization is concerned with the achievement of objective through the contribution of individual managers rather than on the basis of these traits. It is a process agreeing upon objectives within an organization so that management and employees agree to the objectives and understand what they are. MBO introduced the smart criteria and is often achieved using set target. Objectives from MBO must be SMART (specific, measurable, achievable, realistic and time specific). Pay incentives are often linked to results in reaching the objectives.

7) Alteration Ranking Method: Ranking employees from best to worst on a trait is another option. First list of all subordinates to be rated, and then cross out the names of any not known well enough to rank. Then on a form, indicate the employee who is the highest and the next and the lowest until all the employees have been ranked.

8) Peer Appraisal: This is used only 5% of thousand organizations and is a traditional one. It can be undesirable consequences, however one study found that negative peer ratings led to significantly lower performance, group coercion, and satisfaction among those receiving the negative ratings. On a positive note, members of self managed teams at digital equipment corporation evaluate other

team members performance using participatory performance appraisal processes. Results in terms of commitment and productivity appear to be positive.

9) 360 DEGREE FEEDBACK Many firms have expanded the idea of upward feedback into what the call 360degree feedback. The feedback is generally used for training and development, rather than for pay increases. Most 360 Degree Feedback system contains several common features. Appropriate parties peers, supervisors, subordinates and customers, for instance complete survey, questionnaires on an individual. 360 degree feedback is also known as the multi-rater feedback, whereby ratings are not given just by the next manager up in the organizational hierarchy, but also by peers and subordinates. Appropriates customer ratings are also included, along with the element of self appraisal. Once gathered in, the assessment from the various quarters are compared with one another and the results communicated to the manager concerned. 1.1.6 Benefits of Performance Appraisals

Measures an employees performance. Helps in clarifying, defining, redefining priorities and objectives. Motivates the employee through achievement and feedback. Facilitates assessment and agreement of training needs. Helps in identification of personal strengths and weaknesses. Plays an important role in Personal career and succession planning. Clarifies team roles and facilitates team building. Plays major role in organizational training needs assessment and analysis.

Improves understanding and relationship between the employee and the reporting manager and also helps in resolving confusions and

misunderstandings.

Plays an important tool for communicating the organizations philosophies, values, aims, strategies, priorities, etc among its employees.

Helps in counseling and feedback. .

1.2 PERFORMANCE APPRAISAL SYSTEM IN TTSL

TTSL follows a system of performance appraisal. The period of appraisal and methods of appraising is different for different category/group. The appraisal of trainee is done every quarter from the date of joining. Organization follows a separate system of appraisal for workers and the level Asst. Supervisor and above. Both the category is appraised twice a year.

Appraisal of Junior Management Staff In TTSL assistant supervisor to senior officer are appraised twice a year in the month of April and October. The assessment is done following guidelines and is done on different eleven attributes of knowledge of work, quality of work, quantity of work, dependability, initiative drive and resourcefulness, work attitude, conduct, discipline, attendance, communication, subordinate development. Each attribute is assigned 10 marks making a total of 220 (maximum marks) head of the department appraise the employee on different attribute. The result are used for different purpose of promotion, increment etc.

1.3 COMPANY PROFILETATA TELESERVICES LTD

Tata Teleservices Limited spearheads the Tata Group's presence in the telecom sector. The Tata Group had revenues of around US $75 billion in financial year 2008-09, and includes over 90 companies, over 350,000 employees worldwide and more than 3.5 million shareholders.

Incorporated in 1996, Tata Teleservices Limited is the pioneer of the CDMA 1x technology platform in India. It has embarked on a growth path since the acquisition of Hughes Tele.com (India) Ltd [renamed Tata Teleservices (Maharashtra) Limited] by the Tata Group in 2002. It launched mobile operations in January 2005 under the brand Tata Indicom and today enjoys a pan-India presence through existing operations in all of India's 22 telecom Circles. The company is also the market leader in the fixed wireless telephony market with its brand Walky. The company has recently introduced the brand Photon to provide a variety of options for wireless mobile broadband access.

Tata Teleservices Limited now also has a presence in the GSM space, through its joint venture with NTT DOCOMO of Japan, and offers differentiated products and services under the TATA DOCOMO brand name. TATA DOCOMO arises out of the Tata Group's strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. TATA DOCOMO has received a pan-India license to operate GSM telecom services-and has also been allotted spectrum in 18 telecom Circles. The company has rolled out GSM services in 14 of India's 22 telecom Circles in a quick span of under six months. The company plans to launch pan-India operations by the end of FY 2009-10.

Today, Tata Teleservices Limited, along with Tata Teleservices (Maharashtra) Limited, serves over 58 million customers in more than 410,000 towns and villages across the country, with a bouquet of telephony services encompassing mobile services, wireless desktop phones, public booth telephony, wire line services and enterprise solutions.

In December 2008, Tata Teleservices Limited announced a unique reverse equity swap strategic agreement between its telecom tower subsidiary, Wireless TT Info-Services Limited, and Quippo Telecom Infrastructure Limited-with the combined entity kicking off operations in early 2009 with 18,000 towers, thereby becoming the largest independent entity in this space-and with the highest tenancy ratios in the industry. The WTTIL-Quippo combine is targeting over 50,000 towers by the end of FY 2010-11.

2.3.1 PRODUCTS AND SERVICES TATA Teleservices works under three brand names i.e. TATA Indicom Incorporated in 1996, Tata Teleservices Limited is the pioneer of the CDMA (Code division multiple access) technology platform in India. It launched mobile operations in January 2005 under the brand Tata Indicom and today enjoys a pan-India presence. The company is also the market leader in the fixed wireless telephony market with its brand Walky. The company has recently introduced the brand Photon to provide a variety of options for wireless mobile broadband access. The company's network has been rated as the 'Least Congested' in India for last five consecutive quarters by the Telecom Regulatory Authority of India through independent surveys.

TATA Docomo - is Tata Teleservices Limited's (TTSL) telecom service on the GSM (Global System for Mobile Communications) platform-arising out of the Tata Group's strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. Tata Teleservices has received a pan-India license to operate GSM telecom services, under the brand TATA DOCOMO. TTSL and has already rolled out its services in various circles. The launch of the TATA DOCOMO brand marks a significant milestone in the Indian telecom landscape, as it stands to redefine the very face of telecoms in India. Tokyo-based NTT DOCOMO is one of the world's leading mobile operators-in the Japanese market, the company is clearly the preferred mobile phone service provider in Japan with a 50 per cent market share. DOCOMO is also a global leader in the VAS (Value-Added Services) space, both in terms of services and handset designs, particularly integrating services at the platform stage. The Tata Group-NTT DOCOMO partnership will see offerings such as these being introduced in the Indian market under the TATA DOCOMO brand.

Virgin Mobile - brand is Indias first national youth-focused mobile service. Virgin Mobile branded services are being offered to the Indian consumers by Tata Teleservices through a brand franchise with Virgin Mobile. Virgin Mobile India will provide Tata Teleservices with experience and expertise in designing, marketing and servicing of Virgin Mobile branded products for the youth segment. Like Tata Teleservices, Virgin Mobile also provides services to its customers in GSM & CDMA technology.

TATA Walky Tata Indicom proudly brings a revolutionary new home phone - Tata Indicom Walky with a unique 10 digit number for small & semi urban towns. A superior

phone with advanced features like Internet, caller ID, speaker phone, address book etc. Tata Walky is available in both Prepaid and Postpaid versions, so that one can choose what suits their requirements best. With Tata Walky, you control your monthly home phone budget.

TATA Photon Tata Teleservices introduced Tata Photon, its new Mobile Broadband Service, the next generation technology for Hi speed Mobile Internet connectivity solution. With Tata Photon Plus service you now have access to Mobile Internet at never before speeds, where ever you are.

Blackberry Services Blackberry has become synonymous as a productivity enhancement tool, with its innovative push mail services. Award-winning Blackberry solutions are designed to increase the efficiency of business by providing wireless access to phone, email, browser, calendar, contacts, task lists and business applications all of this on a single device. In short, with a Blackberry one does not have to be confined to their desk. One can seamlessly and conveniently access corporate information, respond to mails, upload information anytime anywhere.

CHAPTER 2

LITERATURE REVIEW

The history of performance appraisal is quite brief.

Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resourse management. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War - not more than 60 years ago. Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things historical, it might well lay claim to being the world's second oldest profession!

There is, says Dulewicz (1989), "... a basic human tendency to make judgments about those one is working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate. Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified.

The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order. Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt that a cut in pay, or a rise, should provide the

only required impetus for an employee to either improve or continue to perform well. Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed. For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance.

These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and selfesteem, could also have a major influence. As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.

PRODUCTIVITY
The concept of productivity, generally defined as the relation between output and input, has been available for over two centuries and applied in many different circumstances on various levels of aggregation in the economic system. It is argued that productivity is one of the basic variables governing economic production activities, perhaps the most important one (Singh et al, 2000). Grossman (1993), for example, discusses productivity improvement as representing one of the key competitive advantages of an enterprise. This is emphasized in the following way. Companies need to realize that gains in productivity are one of their major weapons to achieve cost and quality advantages over their competition.

Various authors from different viewpoints in the literature frequently describe the importance of productivity. Thurow (1993), for example, looks at productivity from a wider perspective and claims that productivity is the central longrun factor determining any populations average standard of living. This view is further supported by Christopher and Thor (1993) who argues that competitiveness, profitability, good jobs, and living standards, depend on productivity. While some authors point out that productivity is of profound importance for our development of welfare (Sohlenius et al, 2000), others describe productivity as one of the most important concepts in the field of manufacturing4 (Suh, 1990). This is explained by Kendrick (1993) who describes how productivity influence the national level to the personal: 1) At the national level, productivity is a major element of economic growth and progress. Improved productivity provides a proportionate offset to increases in wage rates and other input prices, thereby reducing the rate of inflation of output prices, it can also contribute to increased consumption. 2) At the industry level, above-average productivity growth leads to relative declines in costs and prices. In domestic and international markets, this increases the competitiveness of the firms of the progressive industries, which consequently tend to grow faster than average. 3) At the company level, productivity is fundamental to profitability and survival. Companies with higher productivity than the industry average tend to have higher profit margins. Conversely, below-average levels and rates of growth of productivity will ultimately lead to bankruptcy. 4) At the personal level, increasing productivity in all of ones activities is an important aspect of self-fulfilment. High productivity means better job security and might also raise workers salary. However, as advocated by numerous authors in literature (Slack et al, 2001), (Sumanth, 1994), (Drucker, 1974), the use of performance measures is indeed an effective way to support productivity improvements and research concerning

performance measurement is, therefore, of vital importance. Further, as described by Wilson (1994), the knowledge in performance measurement is still not satisfactory: Despite the importance of productivity measurement, useful tools are not widely available and are often misunderstood. Such indices lack effective, accurate, and sensitive means of measuring the efficiency of operations.

There are also many reasons besides productivity improvement for using performance measures. Drucker (1974), for instance, states the usefulness and importance of performance measurement in the following way. Without productivity objectives, a business does not have direction. Without productivity measurement, it does not have control.

A frequently used argument for the use of performance measures, which cannot be ignored, is simply what gets measured gets attention. This is even truer when rewards are tied to the performance measures. In other words, performance measures can be used to force an organization to focus on the right issues. Furthermore, performance measurement can be described as an important aid to making judgments and to making decisions, since companies can use performance measures to (Parker, 2000): Identify success Identify whether they are meeting customer requirements (unless they measure, how do they know that they are providing the products that their customers require?) Help them understand their processes (to confirm what they know or reveal what they do not know) Identify where problems, bottlenecks and waste exists and where

improvements are necessary Ensure that decisions are based on facts, not supposition, emotion or intuition

According to Bourne et al (2000), the development of a performance measurement system can be divided into three main phases. Phase 1. The design of the performance measures Phase 2. The implementation of the performance measures Phase 3. The use of the performance measures The first phase, the design of the performance measures, can be subdivided again into identifying the key objectives to be measured and designing the measures themselves. There is a strong consensus among researchers in this field that performance measures should be derived from strategy. In other words, this phase often begins with defining important strategic objectives of the company, which are later broken down to more concrete key objectives to be achieved on minor levels in the company. Then, the actual performance measures are designed in accordance to the key objectives. The second phase, the implementation of the performance measures, is defined as when system and procedures are put in place to collect and process the data that enable the measurements to be made regularly. This may involve computer programming to trap data already being used in the system and present them in a more meaningful form. It may involve initiating new procedures, so that information currently not recorded is captured and it may involve completely new initiatives (Bourne et al, 2000). The third phase, the use of the performance measures, is split into two main subdivisions. First, as the measures are derived from strategy, the initial use to which they should be put is that of measuring the success of the implementation of that strategy. Second, the information and feedback from the measures should be used to challenge the assumptions and test the validity of the strategy. Therefore, assessing the implementation of strategy and challenging the strategic assumptions are two main subdivisions of the use of the performance measures.

CHAPTER 3

RESEARCH METHODOLOGY

3.1 OBJECTIVE
This project aims at studying the system of performance appraisal and its effectiveness TTSL. Performance appraisal is the most significant and indispensable tool for the management as it provide useful information for decision making in area ofpromotion and compensation reviews.

Thus broad objectives of the study include: To know the present system of performance appraisal in TTSL To know the extent of effectiveness of the appraisal system To suggest certain measures for further improvement in the current system To investigate and clarify how to evaluate and revise performance evaluation. To identify strengths and weaknesses in the current performance evaluation. To know the basic terms and concepts used in the field of performance evaluation. To find whether the employees are given promotion based on their performance. To find whether the employees are satisfied with current performance appraisal system

3.2 RESEARCH DESIGN:

Research Design refers to "framework or plan for a study that guides the collection and analysis of data". A typical research design of a company basically tries to resolve the following issues: 1. Determining Data Collection Design 2. Determining Data Methods 3. Determining Data Sources 4. Determining Primary Data Collection Methods 5. Developing Questionnaires 6. Determining Sampling Plan (1) Explorative Research Design: Explorative studies are undertaken with a view to know more about the problem. These studies help in a proper definition of the problem, and development of specific hypothesis is to be tested later by more conclusive research designs. Its basic purpose is to identify factors underlying a problem and to determine which one of them need to be further researched by using rigorous conclusive research designs. (2) Conclusive Research Design: Conclusive Research Studies are more formal in nature and are conducted with a view to eliciting more precise information for purpose of making marketing decisions. These studies can be either:

Descriptive or Experimental

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

3.3 SAMPLING PLAN

Sample Size = 100 Employees Sample Area = TTSL, Duration = Two (2) Months.

3.4 DATA COLLECTION

Data Sources:

Secondary Data through Internet Primary Data through Questionnaire Contact Method Personal Interaction

DATA PRESENTATION AND ANALYSIS:

Bar graphs Pie Diagrams Doughnuts

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

Table 1) Age wise classification of Employees in TTSL

Age 18-30 Year 30-40 Year 40-50 Year Above 50 Year

% 15 30 35 20

No. of Responses 15 30 35 20

Age Wise Classification

35 30

Number of Employees

25 20 15 10 5 0 18-30 30-40 40-50 Above 50 Age of Employees

INTERPRETATIONThe table above shows that about 15% of employees are at the age category of 18-30, 30% of employees are at the age category of 30-40, about 35% of the employees are at the age category of 40-50, and 20 % of the employees are at the age category of above 50.

Table 2) Awareness of technique of Performance Appraisal being followed at TTSL among employees.

Options Yes No

% 72 28

No. of Responses 72 28

Awareness of Techniques of Performance Appraisal

28% yes no 72%

INTERPRETATIONThe study shows that majorities i.e. 72% of the employees are aware of the performance appraisal system in the organization and remaining 28% are not aware of the Performance Appraisal System in the organization.

Table 3) Employees opinion as to the present appraisal system.

Options Fully Satisfied Satisfied Cant Say Dissatisfied

% 2 24 44 30

No. of Responses 2 24 44 30

Response
50 40 30 20 10 0 Fully Satisfied Satisfied Can't Say Dissatisfied

No. of Employees

INTERPRETATION44% of the employees are satisfied by the Appraisal System of TTSL. Only 4% are fully satisfied. 22% are dissatisfied

Table 4) Achievements of work objectives.

Options Discussed Not Discussed

% 60 40

No. of Responses 60 40

Achievement of Work Objectives

60 40 20 0 Discussed Not Discusses

60
40
No. of Employees

INTERPRETATIONFrom the above diagram it shows that the achievement of work done by the employees 60% is discussed by the superiors and remaining 40% is not discussed.

Table 5) Reward for Performance Reward Salary Increment Promotion Appreciation Bonus Payment % 35 20 35 10 No. of Responses 35 20 35 10

35 35 30 25 20 15 10 5 0 Salary Increment Promotion 20

35

10

Appreciation

Bonus Payment

No. of Employees

INTERPRETATIONThe study shows that the reward is based on the performance of the employees, so this study shows that 35% of the employees says that reward is in the form of salary increment, 20% of the employees says that it is in the form of promotion, 35% says that the reward in form of appreciation and 10% of the employees says that it is in the form of bonus payment.

Table 6) Number of employees appraised during their service period.

Options Yes No

% 68 32

No. of Responses 68 32

Response
No. of Employees

68 32

Yes

No

INTERPRETATION68% of employees in TTSL are appraised in their service period and rest 32% are not. This means that employees are appraised often.

Table 7) How often does your Performance assessment match to your expectations? Options Never Rarely Sometimes Often Every time % 2 8 13 20 7 No. of Responses 2 8 13 20 7

Response
20 18 16 14 12 10 8 6 4 2 0 Never Rarely Some times Often Every time

No. of Employees

INTERPRETATIONThe breakup of the data clearly shows that 4% of the entire sample state that their appraisal have never shown a fair view of their performance. If this can be combined with those who are of the opinion that their appraisal rarely matches up to their expectations, this figure goes up to consist about 20% of the population. That shows that 80% are satisfied with the present system even though this includes satisfaction in varying degrees like the appraisal matches up to the respondents expectations sometimes, often or every time.

Table 8) Employee perception as to the frequency of appraisal.

Options Once during Service Period Continuous Never Cant Say

% 2

No. of Responses 2

92 0 6

92 0 6

Response
Can't Say Never No. of Employees Continous Once 0 20 40 60 80 100

INTERPRETATION92% of the employees want the Appraisal to be continuous.

Table 9) If Continuous Appraisal- what should be the gap between two appraisal period.

Options Quarterly Half yearly Yearly

% 20 44 36

No. of Responses 20 44 36

Response
No. of Employees

44 20

36

Quarterly

Half yearly

Yaerly

INTERPRETATION44 % of the employees think that the continuous appraisal should be held half yearly, 36% insist on yearly basis and 20% wants it to be on quarterly basis.

Table 10) How Performance Appraisal affects the Productivity of Employees.

Options Motivated Indifferent Demotivated

% 71 20 9

No. of Responses 71 20 9

No. of Employees
Demotivated 9%

Indifferent 20% Motivated 71%

INTERPRETATIONIn TTSL, 71% of the employees are motivated by the Performance Appraisal System where as 7 % are demotivated and 20% are not at all effected by the system.

Table 11) Who should appraise?

Options Your Immediate Supervisor Department Head Appraisal Committee Self Appraisal Satisfied

% 6

No. of Responses 6

22 12 6 2

22 12 6 2

No. of Employees
No. of Employees

22 12 6 Immediate Department Appraisal Supervisor Head Committee 6 Self Appraisal 2 Satisfied

INTERPRETATION-

Majority of responses were for the department head to appraise. A quarter also responded for the appraisal committee to do the appraisal.

Table 12) Appropriate method of conducting the Performance Appraisal. Options Ranking Method Paired Comparison Critical Incidents MBO Assessment Centre 360 Degree % 12 0 20 58 4 6 No. of Responses 12 0 20 58 4 6

60 50 40 30 20 10 0 No. of Employees

INTERPRETATION-

Majority of the employees think that Management By Objective is the better way to evaluate performance in the company.

CHAPTER 5

CONCLUSION AND SUGGESTIONS

CONCLUSION

Tata Teleservices Limited spearheads the Tata Group's presence in the telecom sector. The Tata Group had revenues of around US $75 billion in financial year 2008-09, and includes over 90 companies, over 350,000 employees worldwide and more than 3.5 million shareholders. Majority of employees are of the age above 50 and have good experience. Since the employees are working together for a long time the appraisers can accurately evaluate the performance of the appraisee. . The study helps me to get practical knowledge about how the performance appraisal is conducted in an organization and I consider it is a good opportunity to get exposure to the functioning of the organization. The result obtained from the study that the performance appraisal system of TTSL is good. But some measures should be taken to meet it from good to excellent.

SUGGESTIONS
The success of the performance appraisal system depends on the employees belief on the appraiser who rates them. So there should be rapport between the employees. Feedback should be given to all the employees so that they can understand their strength and weakness and improve upon them. The job and role expected from the employees should be decided well in advance and that too with the consensus with them.

Transparency into the system should be ensured through the discussion about employees performance with the employee concerned and trying to find the out the grey areas so that training can be implemented to improve on that.

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.

ANNEXURES

ANNEXURE A Study on the Effectiveness of Performance Appraisal System in KMML

Sir/Madam, I am a student of Sri Ramaswamy Memorial Institute of Science and Technology (SRM), II year MBA. I am undertaking the project work on A study of Effectiveness of Performance Appraisal System in TTSL as a part of my course curriculum. Kindly help me in sparing sometime of your busy schedule and fill up the questionnaire to provide with true and fair information. Thank You. Anubha Kandpal

Name- 1. Age18-30 31-40 42-50

Department-

Above 50

2. Are you aware of the Performance Appraisal Techniques being followed at TTSL? Yes No

3. What is your opinion as to the present Appraisal System of TTSL? Fully Satisfied Satisfied Cant Say Dissatisfied

4. Achievement of work objectives are Discussed Not Discussed

5. What is the reward for the performance? Salary Incentive Promotions Appreciation Bonus Payment

6. Were you appraised during your service period? Yes No

7. How often does your Performance assessment match to your expectations? Never Rarely Sometimes Often Every time

8. What should be the frequency of Appraisal at TTSL? Once during the service period Continuous Never Cant Say

9. If Continuous Appraisal- What should be the gap between two appraisal period? Quarterly Half Yearly Yearly

10. How Performance Appraisal affects you? Motivated 11. Who should appraise you? Supervisor Self Appraisal Department Head Satisfied Appraisal Committee Indifferent Demotivated

12. What is the appropriate method of conducting the Performance Appraisal? Ranking Method MBO Paired Comparison Assessment Centers Critical Incidents 360 Degree

BIBLIOGRAPHY

BOOK REFERENCE
Recent Experience Human Resource Development, editors - T.V.Rao & D.F. Pereira. Human Resource Management, Eighth edition, Gary Dessler. Personnel Management, sixth edition, Edwin B. Flippo A.A. Niyadi, Performance Appraisal An Approach, Indian

SITE REFERENCE

www.scribd.com www.wikipedia.org www.google.com