59114485 project report on performance appraisal

DECLARATION

I hereby declare that the project titled “PERFORMANCE APPRAISAL

PROCESS IN BAJAJ ALLIANZ” is my own work and efforts which is

completed under the supervision of Mr. Vinay Kumar Sharma (HR

EXECUTIVE IN BAJAJ ALLIANZ)

The project report has been submitted to North Indian Institute of

Technology, Najibabad affiliated to Mahamaya Technical University,

Noida (U.P.) for the purpose of the compliance of any requirement of any

examination or any degree earlier.

PRIYANKA RAJPUT

(MBA III Sem.)

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PREFACE

Master of Business Administration (M.B.A.), one of the most reputed

professional courses includes both theory & practical as a part of two years

curriculum.

In this course each student it reputes to undergo practical project in an

organization of repute. Project report is an exercise by means of which student

learn many things which cannot be taught in the classroom. During project

students understand the real modus operation of the concerned areas of interest

in the real life situation.

The Project report process is an endeavor to converts all that’s virtual into a real

image i.e. it helps in applying all the theoretical concepts in to the real corporate

world. It helps in developing the managerial skills using which we can convert

into language & convey the taught & ideas from our mind to others.

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ACKNOWLEDGEMENT

This project is the result of the help of the various people who rendered their

support and suggestions from time to time. I take this opportunity to thank all of

them with a deep sense of gratitude and reverence.

Firstly, I wish to express my sincere thanks to Mr. Vinay Kumar Sharma (HR

Executive at BAJAJ ALLIANZ) for his caring and guiding support and for

giving a very patient hearing whenever I needed. He directly made a significant

contribution to emerge to this project report.

My sincere thanks to MISS AFSHA ( HR FACULTY & PROJECT GUIDE

NIIT, NAJIBABAD) & Other faculty member for their support and help.

I would also like to thank my family and friends who directly or indirectly helped me in finishing the project successfully.

PRIYANKA RAJPUT

(MBA III Sem.)

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ABOUT INSURANCE SECTOR IN INDIA

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance

Corporation Act, 1956 and General Insurance Business (Nationalisation) Act, 1972,

Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts.

With such a large population and the untapped market area of this population Insurance

happens to be a very big opportunity in India.

Today it stands as a business growing at the rate of 15-20 per cent annually. Together with

banking services, it adds about 7 per cent to the country’s GDP .In spite of all this growth the

statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian

populations are without Life insurance cover and the Health insurance. This is an indicator

that growth potential for the insurance sector is immense in India. It was due to this immense

growth that the regulations were introduced in the insurance sector and in continuation

“Malhotra Committee” was constituted by the government in 1993 to examine the various

aspects of the industry. The key element of the reform process was Participation of overseas

insurance companies with 26% capital. Creating a more efficient and competitive financial

system suitable for the requirements of the economy was the main idea behind this reform.

Since then the insurance industry has gone through many sea changes .The competition LIC

started facing from these companies were threatening to the existence of LIC .since the

liberalization of the industry the insurance industry has never looked back and today stand as

the one of the most competitive and exploring industry in India. The entry of the private

players and the increased use of the new distribution are in the limelight today. The use of

new distribution techniques and the IT tools has increased the scope of the industry in the

longer run.

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HISTORY OF INSURANCE SECTOR

The business of life insurance in India in its existing form started in India in the year 1818

with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the

important milestones in the life insurance business in India are given in the table 1.

Table 1: milestone’s in the life insurance business in India

Year Milestones in the life insurance business in India

1912 The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business

1928 The Indian Insurance Companies Act enacted to enable the government

to collect statistical information about both life and non-life insurance

businesses

1938 Earlier legislation consolidated and amended to by the Insurance Act

with the objective of protecting the interests of the insuring public.

1956 245 Indian and foreign insurers and provident societies taken over by the

central government and nationalized. LIC formed by an Act of

Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore

from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton

Insurance Company Ltd., the first general insurance company established in the year 1850

in Calcutta by the British. Some of the important milestones in the general insurance business

in India are given in the table 2.

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Table 2: milestone’s in the general insurance business in India

Year Milestones in the general insurance business in India

1907 The Indian Mercantile Insurance Ltd. set up, the first company to transact

all classes of general insurance business

1957 General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business

practices

1968 The Insurance Act amended to regulate investments and set minimum

solvency margins and the Tariff Advisory Committee set up.

1972 The General Insurance Business (Nationalization) Act, 1972 nationalized

the general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four company’s viz. the

National Insurance Company Ltd., the New India Assurance Company

Ltd., the Oriental Insurance Company Ltd. and the United India

Insurance Company Ltd. GIC incorporated as a company.

Life Insurance in its current form was introduced in 1818 when Oriental Life Insurance

Company began its operations in India. General Insurance was however a comparatively late

entrant in 1850 when Triton Insurance company set up its base in Kolkata.

History of Insurance in India can be broadly bifurcated into three eras:

a) Pre Nationalization

b) Nationalization

c) Post Nationalization.

Life Insurance was the first to be nationalized in 1956. Life Insurance Corporation

of India was formed by consolidating the operations of various insurance companies. General

Insurance followed suit and was nationalized in 1973. General Insurance Corporation

of India was set up as the controlling body with New India, United India, National and

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Oriental as its subsidiaries. The process of opening up the insurance sector was initiated

against the background of Economic Reform process which commenced from 1991. For this

purpose Malhotra Committee was formed during this year who submitted their report in 1994

and Insurance Regulatory Development Act (IRDA) was passed in 1999. Resultantly Indian

Insurance was opened for private companies and Private Insurance Company effectively

started operations from 2001.

Insurance Market- Present:

The insurance sector was opened up for private participation four years ago. For years now,

the private players are active in the liberalized environment. The insurance market have

witnessed dynamic changes which includes presence of a fairly large number of insurers both

life and non-life segment. Most of the private insurance companies have formed joint venture

partnering well recognized foreign players across the globe.

There are now 29 insurance companies operating in the Indian market – 14 private life

insurers, nine private non-life insurers and six public sector companies. With many more

joint ventures in the offing, the insurance industry in India today stands at a crossroads as

competition intensifies and companies prepare survival strategies in a DE tariffed scenario.

There is pressure from both within the country and outside on the Government to increase the

foreign direct investment (FDI) limit from the current 26% to 49%, which would help JV

partners to bring in funds for expansion.

There are opportunities in the pensions sector where regulations are being framed. Less than

10 % of Indians above the age of 60 receive pensions. The IRDA has issued the first licence

for a standalone health company in the country as many more players wait to enter. The

health insurance sector has tremendous growth potential, and as it matures and new players

enter, product innovation and enhancement will increase. The deepening of the health

database over time will also allow players to develop and price products for larger segments

of society.

State Insurers Continue to Dominate There may be room for many more players in a large

underinsured market like India with a population of over one billion. But the reality is that the

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intense competition in the last five years has made it difficult for new entrants to keep pace

with the leaders and thereby failing to make any impact in the market.

Also as the private sector controls over 26.18% of the life insurance market and over 26.53%

of the non-life market, the public sector companies still call the shots.

The country’s largest life insurer, Life Insurance Corporation of India (LIC), had a share of

74.82% in new business premium income in November 2005.

Similarly, the four public-sector non-life insurers – New India Assurance, National Insurance,

Oriental Insurance and United India Insurance – had a combined market share of 73.47% as

of October 2005. ICICI Prudential Life Insurance Company continues to lead the private

sector with a 7.26% market share in terms of fresh premium, whereas ICICI Lombard

General Insurance Company is the leader among the private non-life players with a 8.11%

market share. ICICI Lombard has focused on growing the market for general insurance

products and increasing penetration within existing customers through product innovation

and distribution.

Reaching out to Customers No doubt, the customer profile in the insurance industry is

changing with the introduction of large number of divergent intermediaries such as brokers,

corporate agents, and banc assurance.

The industry now deals with customers who know what they want and when, and are more

demanding in terms of better service and speedier responses. With the industry all set to

move to a DE tariffed regime by 2007, there will be considerable improvement in customer

service levels, product innovation and newer standards of underwriting.

Intense Competition In a de-tariffed environment, competition will manifest itself in prices,

products, underwriting criteria, innovative sales methods and creditworthiness. Insurance

companies will vie with each other to capture market share through better pricing and client

segmentation.

The battle has so far been fought in the big urban cities, but in the next few years, increased

competition will drive insurers to rural and semi-urban markets.

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Global Standards While the world is eyeing India for growth and expansion; Indian

companies are becoming increasingly world class. Take the case of LIC, which has set its

sight on becoming a major global player following a Rs280-crore investment from the Indian

government. The company now operates in Mauritius, Fiji, the UK, Sri Lanka, and Nepal and

will soon start operations in Saudi Arabia. It also plans to venture into the African and Asia-

Pacific regions in 2006.

The year 2005 was a testing phase for the general insurance industry with a series of

catastrophes hitting the Indian sub-continent.

However, with robust reinsurance programmes in place, insurers have successfully managed

to tide over the crisis without any adverse impact on their balance sheets.

With life insurance premiums being just 2.5% of GDP and general insurance premiums being

0.65% of GDP, the opportunities in the Indian market place is immense. The next five years

will be challenging but those that can build scale and market share will survive and prosper.

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COMPANY PROFILE

Bajaj Allianz Life Insurance Company Limited

Type Public Listed Company

Industry Insurance

Founded 2001

Headquarters India

Area served Worldwide

Key people Varghese Philip (CEO)

Website BajajAllianz.com

Bajaj Allianz offers a wide range of life insurance plans through which customers can secure their lives as well as their family’s financial well-being.

An overview of their life insurance products:

Term Plans – Bajaj Allianz offers basic term life insurance plans through which

customers can insure their lives for a high sum assured.

ULIPs – The Unit Linked Insurance Plans which combine the best of insurance and

investment to provide security for one’s family. These plans come with the aim of

helping the customer plan for various long-term objectives, such as retirement,

children’s education and marriage, etc.

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http://www.bajajallianz.com/Corp/index.jsp

http://en.wikipedia.org/w/index.php?title=Varghese_Philip&action=edit&redlink=1

http://en.wikipedia.org/wiki/Insurance

http://en.wikipedia.org/wiki/Public_company

http://en.wikipedia.org/wiki/Types_of_business_entity

http://en.wikipedia.org/wiki/File:Bajaj_Allianz_Insurance.svg

Traditional Plans – Bajaj Allianz’s money-back plans are geared towards the needs

of those customers who are looking for both life insurance and savings for the future.

These plans combine traditional life insurance with investment, compounded over

time, to pay out a regular income to the customer once the plan has matured.

Life + Health Insurance Plans – Bajaj Allianz also offers a range of unique

hospitalization-cum-insurance plans that take care of the customers’ hospitalization

bills and provide financial support to their dependents in case of their unfortunate

death.

Pension Plans – With the awareness that retirement is one of the largest worries of

the populace, Bajaj Allianz has created a range of plans specifically for generating a

retirement income.

Women Insurance Plans – Bajaj Allianz also offers women-specific plans which

provide investment benefits, savings, retirement solutions and medical insurance, all

in one.

Additional Rider Benefits – Bajaj Allianz’s life insurance policies are customizable

in a variety of ways. They can be extended to cover additional risks such as disability,

critical illness, loss of ability to work, etc. via the various riders offered by the

company and person as well.

Bajaj Allianz Life Insurance

Is the fastest growing private life insurance company in India.

Currently have over 300000 satisfied customers.

Have Customer care centers in 156 cities with 28000 Insurance Consultant providing the

finest customer service.

Bajaj Allianz General Insurance Company Limited is a joint venture between

Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a reputation of

expertise, stability and strength.

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Bajaj Allianz General Insurance received the Insurance Regulatory and

Development Authority (IRDA) certificate of Registration (R3) on May 2 n d ,

2001 to conduct General Insurance business (including Health Insurance

business) in India. The Company has an authorized and paid up capital of

Rs.110 crores. Bajaj Auto holds 74% and Allianz holds the remaining 26%.

AG, Germany.

In i ts first year of operations the company has acquired the NO. 1 status

among the private non-life insurers. As on 31 s t March 2003, Bajaj Allianze

General Insurance maintained its leadership posit ion by garnering a premium

income of Rs.300 Crores. Bajaj Allianze also became one of the few

companies to make a profit in i ts first full year of operations. Bajaj Allianz

made a profit after tax of Rs.9.6 crores.

Bajaj Allianze today has a network of 62 offices spread across the length and

breadth of the country. From Surat to Slil iguri and Jammu to

Thiruvananthapuram, all the 38 offices are interconnected with the Head

Office at Pune. In the first half of the current financial year, 2004-05, Bajaj

Allianz generated a premium income of Rs.405 crores, achieving a growth

of 84% and registered a 52% growth in Net profit of Rs. 20 Crores over the

last year for the same period. In the financial year 2003-04, the premium

earned was Rs.480 Crores, which is a jump of 60% and the profit zoomed by

125% to Rs. 21.6% Crores.

Shareholders & Promoters

1. Bajaj Auto Limited

Bajaj Auto Limited is the largest manufacturer of two and three-wheelers in

India and also one of the largest manufacturers in the world. Bajaj Auto has

been in operation for over 55 years. As a promoter of Bajaj Allianz General

Insurance Company Ltd., Bajaj Auto has the following to offer:

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Vast distribution network.

Knowledge of Indian consumers.

Financial strength and stability to support the insurance business

2. Allianz AG, Germany

Allianz Group is one of the world's leading insurers and financial services providers.

Founded in 1890 in Berlin, Allianz is now present in more than 70 countries

with over 177,000 employees. At the top of the international group is the

holding company, Allianz AG, with its head office in Munich. Allianz Group

provides its more than 60 million customers worldwide with a comprehensive

range of services in the areas of

Property and casualty insurance,

Life and health insurance,

Asset management and banking.

In fiscal year 2005, Allianz's total revenues amounted to some 100.9 bil lion

euros. At the end of 2005 Allianz Group had more than 1.26 tril lion euros in

assets under management. Of this, 743 bil lion euros were assets managed for

third parties.

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Mission & vision of company

Mission: To become a responsible customer focused market leader. We still

strive to understand the insurance needs of the consumers and translate it into

affordable products that deliver value for money.

Vision:

To be the first choice insurer for customers.

To be the preferred employee for staff in the insurance industry.

To be the number one insurer for creating shareholder value.

CORE COMPETENCIES AT BAJAJ ALLIANZ LIFE INSURANCE

Trust

Claims Philosophy Customer Orientation

Experienced and Expert Servicing Team

Superior Technology

Unique Forms of Risk Cover

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INTRODUCTION TO TOPIC

From immemorial time, man has continuously assesses their capability with others. This urge

to do better has resulted in his continuously evolution which is vital for the growth of any

business. Performance Appraisal (PA) is one such tool to measure the performance of an

employee. Employee performance appraisal is an effective way to determine the performance

of the employees in an organization. Performance Appraisal (PA) is mainly used to determine

the wage increase, promotions, transfer and layoffs, termination of services & the training

and development to the employees in an organization. It serves as a tool to determine the

future of the organization and visualize the career growth of the employees.

Performance Appraisal (PA) is normally done by senior executives and the senior manager in

the organization to appraise the employee for their performance and also to find out

difficulties while meeting their goals. During this period of carrying out the process the

appraiser faces the problem in rating the subordinate/employee/peer and sometime they may

rate their subordinate wrongly, which will block the whole purpose of the appraisal system.

From user testing, the traditional appraisal system found to be efficient in the issues like: it

help to evaluate the true abilities of employees, help employees to understand organizational

goals, and to provide fast and effective feedback. The users found the system easy to

understand and use and were more satisfied with the overall effectiveness of the system.

The main focus of the study of this is to identify the areas in Performance Appraisal System

that would help in the organizational development. Every organization has made it mandatory

to have this appraisal done once in a year to measure their employee performance. Hence,

there should be well-defined appraisal procedure which is properly used to evaluate

employee’s performance. This study report aims at covering all aspects related to

performance.

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In order to make this report comprehensive, sample appraisals are also provided. This study

was conducted at Bajaj Allianz life insurance co. ltd, New Delhi. The objective of the

questionnaire was to obtain employees’ opinion on performance appraisal (PA) system in

their organisation.

The Structural questionnaire prepared for HR survey comprised of two parts:

First part regards the “demographic” of the respondents, asking their name,

designation, qualifications and department in the company (Vice President, Senior HR

consultants, Business Development Executive), their tenure with the organisation and

total experience.

The demographic characteristics of the respondent group were as follows. There is Vice

President who has experience of work since 15 years in the organisation, Senior HR

consultants who work experience of 1-5 years experience, Business development

executive who work experience of 0-1 years.

Second part of the questionnaire consisted of “quantitative and qualitative

statements”. In order to identify importance of the factors in determining.

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OBJECTIVES OF THE PROJECT

The basic objectives of this project are:

To find out present performance appraisal system used in the company.

To find about the employees views for the system adopted by the company to appraise their performance.

To know about the working scheme of the company.

To suggest some measures for improving the methods to appraise the performance of the workers.

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Performance Appraisal

What is Performance Appraisal?

Performance appraisal is a systematic and objective way of judging the relative worth or

ability of an employee in performing the task. Performance appraisal helps to identify those

who are performing their assigned tasks and those who are not and the reasons for such

performance.

Modern Appraisal:-

Performance appraisal may be defined as a structured formal interaction between a

subordinate and supervision , 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 weakness 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 perform- ers 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 dismiss employees or decrease pay).Whether this is an appropriate use of

performance appraisal – the assignment and justification of rewards and penalties – is very

uncertain and contentious matter.

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Performance appraisal is used for:-

1. Identifying employees for salary increases, promotion, transfer and layoff or

termination of services.

2. Determining training need for further improvement in performance.

3. Motivating employees by indicating their performance levels.

4. Establishing a basis for research and reference for personnel decisions in future.

Goals of the Performance Appraisal System:-

For supervisors, the process of performance management is one of the most important

leadership responsibilities.

The performance appraisal system has three primary goals:-

1. To provide a formal means of constructive, open and honest communication

between the employees and his/her supervisor.

2. To enhance employee development through performance feedback and through

the identification of future professional development activities.

3. To measure and document job performance as a basis for making promotion,

compensation and other personnel management decision.

Who Should Conduct the Appraisal?

The individual (supervisor) who has the authority to make hiring recommendations and to

assign work to the employee should be the person responsible for completing the appraisal.

Supervisors who do not directly observe or otherwise measure the outcomes of a given

employee’s job performance should seek input from individuals who do directly observe the

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employee (e.g. a crew leader, group leader, area coordinator, and other workers). This may

be the case, especially in larger departments/units. It’s the responsibility of department/unit

heads and supervisors to prepare written performance appraisal and to conduct timely

appraisal meetings. If a given supervisor should delay or neglect to conduct an appraisal, the

affected employee is encouraged to initiate such or may contact the Department of Human

resources for assistance.

The Performance Appraisal Process

The figure outlines the performance appraisal process. Each step in the process is crucial and

is arranged logically.

Performance Standard and Goals

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Objectives ofPerformance Appraisal

Establish JobExpectations

Design anAppraisal Program

Appraise Performance

PerformanceInterview

Use Appraisal Data forAppropriate Purpose

Performance standards and goals are the basis from which employee performance is

measured. The written performance appraisal should reflect how well the employee

performed against defined job responsibilities and previously established goals and

objectives. Effective goals and objectives must be specified, measurable and reasonable and

have a time frame.

Specific: - Objective and precise language is essential when developing

performance goals and objectives. Supervisors should use terms and descriptions,

which have the same meaning to the supervisor and the employee. Detailed points

rather tan vague descriptions are important for understanding and documentation.

Measurable: - Goals and objectives should be written so that accomplishment or

degrees of accomplishment can be objectively measured.

Reasonable: - Goals and objectives which are too high or rigid may actually

inhibited an employee`s performance. Individuals may become discouraged and

give up if perceive expectations to be unattainable. Goals and objectives should be

reasonable given time frames, circumstances and departmental/unit expectations.

Time frame: - A specific period of time for accomplishment should be identified

with each goals and objectives.

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METHODS OF PERFORMANCE APPRAISAL:-

Terms used to describe the various type of rating systems as well as a definition or

performance appraisal is as follows:

Behavioral Anchored Rating Scales :- The terms used to describe a

performance rating that focused on specific behaviors or sets as indicators of

effective or ineffective performance , rather than on broadly stated adjectives

such as “average, above average, or below average”. Other variations were :

1. Behavioral observations scale.

2. Behavioral expectations scale.

3. Numerically anchored rating scales.

Checklists : - The term used to define a set of adjectives or descriptive statements. If

the rather believed the employee possessed a trait listed, the rather checked the

item , if not the other left the item blank, rating score from the checklist equaled

the number of checks.

Critical Incident Technique :- The term used to describe a method of

performance appraisal that made list of statements of very effective and very

ineffective behavior foreplay. The lists have been combined into categories, which

vary with job .Once the categories had been developed and statements of effective

and ineffective behavior had been provided, the evaluator prepared a log for each

employee. During the evaluation period, the evaluator recorded examples of critical

behaviors in each of the categories and the log has been used to evaluate the

employee at the end of the evaluation period.

Forced Choice Method : - This appraisal method has been developed to prevent

evaluators from rating employees to high. Using this method, the evaluator has to

select from a set of descriptive statements that apply to the employee. The

statements have been weighted and summed to at, effectiveness index.

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Forced Distribution :- The term used to describe an appraisal system similar to

grading on a curve. The evaluator had been asked to rate employees in some fixed

distribution of categories. One way to do this has been to type the name of each

employee on a card and ask the evaluators so sort the cards into piles corresponding

to rating.

Graphic Rating Scale :- The term used to define the oldest and most widely

used performance appraisal method. The evaluators are given a graph and asked to

rate the employees on each of the characteristics can vary one to one hundred. The

rating can be a matrix of boxes for the evaluator to check off or a bar graph where

the evaluator checked off a location relative to the evaluators rating.

Narrative or Essay Evaluation :- This appraisal method asked the evaluator to

describe strengths and weakness of an employee’s behavior. Some companies still

use this method exclusively, whereas in others, the method has been combined with

the graphic rating scale.

Management by Objective : - The management by objectives performance

appraisal method has the supervisor and employee get together to set objectives in

quantifiable terms.

Paired Comparison : - The term used to describe an appraisal method for taking

employee. First the names of the employees to be evaluated have been placed on

separated sheets in a predetermined order, so that each person has been compared

with all other employees to be evaluated. The evaluator then checks the person he or

she felt had been the better of the two on the criterion for each comparison.

Typically the criterion has been the employees over all ability to do the present job.

The number of tines a person has been preferred is tallied and the tally developed is

index of the number being evaluated.

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Ranking : - The term ranking has been used to describe an alternative method of

performance appraisal where the supervisor has been asked to order his or her

employees in terms of performance from highest to lowest.

Weighted Checklist :- The term used to describe a performance appraisal method

where supervisors or personnel specialists familiar with the jobs being evaluated

prepared a large list of descriptive statements about effective and ineffective

behavior on jobs.

Purpose of Traditional Performance AppraisalPerformance appraisal for evaluation using the traditional approach has served the following

purposes:-

Promotion, separation and transfer decision.

Feedback to the employee regarding how the organization viewed the employee`s

performance.

Evaluations of relative contributions made by individuals and entire departments in

achieving higher level organization goals.

Criteria for evaluating the effectiveness of selection and placement decisions

including the relevance information used n the decision with in the organization.

Reward decisions, including merit increases, promotions and other rewards.

Ascertaining and diagnosing training and development decisions

Criteria for evaluating the success of training and development decisions.

Information upon which work scheduling plans, budgeting and human resources

planning can be used.

Two serious flaws in the traditional approach in the performance appraisal exist. The flaws

are:

Organizational performance appraisal is typically primarily concerned with the past

rather than being forward looking through the use of setting objectives or goals.

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Performance appraisal is usually tied to the employee’s salary reviewed. Dealing with

salary generally overwhelmed and block creative, meaningful or comprehensive

consideration of performance goals.

Developmental Performance Approach Purposes

The developmental approach to performance appraisal has been related to employees as

individuals. This approach has been concerned with the use of performance appraisal as a

contributor to employee motivation, development and human resources planning. The

development approach contained all of the traditional overall organizational performance

appraisal purposes and the following additional purposes:

Provided employees the opportunity to formally indicate the direction and level of the

employee`s ambition.

Show organizational interest it employee development, which was cited to help the

enterprise retain ambitious, capable employees instead of losing the employees to

competitors.

Provided a structure for communications between employees and management to help

clarify expectations of the employee by management and the employee.

Provide satisfaction and encouragement to the employee who has been trying to

perform well.

Expectation from a Manager doing a Performance Appraisal

The following is typically expected from company manager when doing performance

appraisal:

Translate organizational goals into individual job objective.

Communicate management`s expectations regarding employee performance.

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Provide feedback to employee about job performance in light of management`s

objectives.

Coach the employee on how to achieve job objectives/requirements.

Diagnose the employee`s strengths and weaknesses.

Determine what kind of development activities might help the employee better utilize

his or her skills improve performance on the current job.

Problem of criterion

A brand definition of criterion is “that which is to be predicated”. This definition refers to the

evaluative standards, which measures are easy if the job is clearly defined but difficult if it is

broad. At lower level of an organization there are specific jobs and certain tangible and

objective standards of performance can be identified. Further up in the hierarchy, jobs

become more complex and clear-cut, tangible standards of performance are difficult to

specify.

Irrespective of the level by and large most companies use eleven performance measures:

1. Quantity of work

2. Quality of work

3. Waste and brokerage

4. Money earned

5. Job knowledge

6. Job tenure

7. Absenteeism

8. Rate of advancement

9. Self judgment

10. Judgment by peers

11. Judgment by supervisors.

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Instructions for using performance appraisal system

Purpose:

The performance evaluation system is used to evaluate employees past work performance,

develop a work plan for the next review period and determine what resources are needed for

improving performance to become more effective. Evaluations also develop employee’s

potential through training and counseling.

The process is designed to be interactive between the employee and the supervisor with the

following objectives in mind:

Use to recognize and reward employees for positive work behavior. Use the

results as a basis for appropriate personnel actions.

Encourage employees to continuously improve, support team endeavors, develop

professionally and perform at their maximum potential.

Communicate and clarify the goals and objectives of the division, department and

the City in relation to the employees` work expectation.

Involve employees in improving their effectiveness and performance.

Provide an employee improvement plan where performance is rated below

standard.

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Performance Evaluation System:

The performance evaluation form is used for all performance reviews. This includes

probationary evaluations (expect Police and Fire have their own process), annual evaluation

and special evaluation for regular full time and regular part time employees. The evaluation

periods are generally twelve months, expect for special evaluations, which may be for shorter

periods of time. Merit step increases are conducted on the employees` anniversary date

(assuming satisfactory performance) and not during the annual performance review.

Supervisor Responsibility:

Each department will conduct employee evaluations for all employees in the department

during the same month. Human resources will notify department heads 30 days prior to when

evaluations are due. Each supervisor completing the performance evaluation should review

the following instructions, the rating criteria definitions and familiarize him or herself with

the procedure prior to competing the evaluations. Upon completion of the evaluation form by

the supervisor (rater) and the reviewer (one level above the rater), then the rater will meet

with the completed form for signatures. Supervisors should provide written comments on the

evaluation form for each performance criteria and list specific examples. Use N/A if the

rating criteria are not applicable. The supervisor is responsible for completing the evaluation

process at the beginning of the rating period and again at 6 month to monitor progress and

adjust time lines if necessary. At that time, a new 12-month work plan is established with the

employee and the process repeats itself. Supervisors shall coordinate the discussion of

performance evaluations with employees in a manner that allows privacy. The supervisor

shall have the employee to complete the Self Performance Evaluation Form as a discussion

tool.

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Forms:

There are two performance evaluation forms which you will always use:

The actual performance evaluation form which includes the cover page called

the Summary Worksheet.

The Employee Self-Evaluation form.

There are two other forms you may need to use:

The Performance Improvement Plan form (used when a rating is #1

Unacceptable or #2 Improvement needed) and attached to Performance

Evaluation form.

Performance Goals form (used by department to follow up mid-year on goals

set in evaluation), optional and not returned to Human Resources.

Rating Process and Criteria:

5 = outstanding performance

4 = exceed expectations

3 = meet expectations

2 = needs improvement

1 = unacceptable

A rating of 1 or 2 requires the supervisor to complete a Performance Improvement Plan form

to document the problem, including specific examples, guidance on improvement, a specific

timetable for improvement, and a follow up evaluation to monitor progress.

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Signature on the Evaluation Form

After the supervisor completes the performance evaluation with the employee, both

the supervisor and employee sign the form. The next level of review is the Reviewer,

one level above the supervisor performing the evaluation (the rater). Depending on

the Department structure, the reviewer could be the Department head, Deputy

Director, or a Division Manager. The mid-year review will only involve the employee

and his/her supervisor with their signatures and the mid-year process does not go into

the personnel file.

Evaluation When a New Supervisor is appointed:

If the employee has an evaluation due and supervisor is appointed, the new supervisor

likely has not had the opportunity to properly evaluate the employee`s performance.

In this instant the new supervisor will evaluate the employee after 90 days. If possible,

the supervisor that is leaving will do a close out evaluation for his/her employees prior

to leaving.

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Steps to complete the annual performance evaluation procedure:

Step 1: Notice to department heads: human resources will notify department heads

30 days prior to when performance evaluations are due for full time and part time regular

employees in their department. Managers/supervisors have 30 days to complete the

performance evaluations, obtain signature and provide the original the human resources

office for filling in the employees personnel file .The supervisor shall also retain a computer

copy/file copy for the midyear review process. Human resources will remind supervisors to

schedule probationary evaluations on their calendar.

Step 2: Blank performance evaluation forms: managers/supervisors obtain the

performance evaluation forms.

Step3: Review job description: review the employee’s job description to see if any

changes are necessary. If there are increased responsibilities /scope of work or a change in

qualifications forward your edits to human resources for review. Minor differences in

workload or added assignment that are industry or technology changes do not require a

change to the job description. (Individual employees do not amend their job descriptions; this

task is for the manager)

Step 4: Self evaluation form: provide a copy of the self evaluation form to the

employee.

If the employee does not want to complete the form, he/she shall check the box and sign at

the bottom of the form and return it to the supervisors. This completed form is used as a tool

for discussion while the supervisors are completing the employees’ evaluation.

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Step 5: Complete the performance evaluation rating forms: The managers

/supervisors complete each section in performance evaluation forms (page 2-3plus). If a

section does not apply note N/A for not applicable. Written comments are required and

should include examples that support the rating the specific job element.

Section 1 to 3 (Technical knowledge, customer service and quality/quantity of work) apply to

all positions.

For section 4(Attendance), the supervisors should review the employees attendance record,

scheduled time away from the job and use of breaks.

Section5 (Safety and Risk management) applies to all jobs and should include notice of any

accident, injuries, equipments usage or other safety related issues. Section6 is only for

department heads, managers, supervisors and lead workers.

Next, complete the section work plan for the next rating period completion date. This list

achievable goals and projects as well as areas to improve upon.

Next, complete the training and development section. The raters the complete the summary

worksheet cover pages for the evaluation form. This is done last and is and over all rating

considering all the rating sectors.

The performance goal forms(optional based on department head discussion is a departmental

tool used during the midyear review o monitor progress, completion date or makes comments

concerning the goals. keep goals to a realistic number (3 to 5) and ones that are achievable

we all have a tendency to put down more goals that we can reasonably achieve.

Also some employees in entry level job may have only 1 or 2 goals or a training course to

complete during the review period the supervisor should used their judgment and discussion

their employees to arrive at goals for the work Plan .

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Step 6: “Unacceptable or Improvement Needed” Rating: If y rate an employee

with a “1” Unacceptable or “2” Improvement needed, you must complete the performance

improvement plan form. Have this completed form reviewed by the department head and

Human Resources prior to presenting it to the employee. This form is used to document

performance and behavior problems that need corrective action. Documentation is critical for

this type of rating.

Note in the event the employee does not improve, the documentation is important for

corrective action. The notice of “Improvement Needed” or “unacceptable” rating must

include:

The problem areas of performance that is determined to be unacceptable.

Identify performance standards that must be achieved to meet acceptable standards.

Provide a reasonable period of time demonstrate improved performance.

Provide assistance to help them achieve the performance standards (training, counseling

and coaching, closer supervision, feedback).

Communicate with employee of the consequences if their performance does not improve

and provide a deadline, such as 30-90 days for a follow up review. However, this time

line does not preclude immediate disciplinary action at any time by department head if the

employees` performance worsens during the rating period.

A rating of #1 shall be reviewed and approved by the department head before being

communicated to the employee.

Step 7: Mid-year Review: Mid-point through the 12-month rating period, the manager

or supervisor will meet with the employee to review his/her progress. This does not require

any new information to be prepared, merely review their performance, goals and deadlines

with the employee. At this step, you may adjust the deadlines as necessary.

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Standard of Performance

Standards of performance are written statement describing how well a job should be

performed. Performance standards are developed collaboratively with employees, whenever

possible and explained to new employees during the first month on the job.

Job Description & Essential Functions

Strategic Plan & Annual Goals

Standards of Performance

Observation & Feedback

Performance Appraisal

Performance Development

The performance standard provides a benchmark against which to evaluate work

performance. While the job description describes the essential functions and the tasks to be

done, the performance standard defines how well each function or task must be performed in

order to meet or exceed expectations. The University also establishes general criteria for

evaluating work performance.

Standards of performance are usually:

Developed in collaboration with the employees who do the tasks or functions.

Explained to new employees within the first month on the job.

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The rating describes the level of performance of the individual employee compared to a job

description and standard of performance.

E =Exceptional: Performance well exceeds expectations and is consistently outstanding.

A = Above Expectation: Performance is consistently beyond expectations.

S = Solid Performance: Performance consistently fulfills expectations and at times exceeds

them.

I = Improvement Needed: Performance does not consistently meet expectation.

U = Unsatisfactory: Performance is consistently below expectations. Deficiencies should be

addressed as noted in the performance appraisal.

As performance manager, you will use these criteria to rate the employees` performance. At

the beginning of the appraisal period, review these ratings and the performance standards for

each position, which reports to you so that you can fairly evaluate the employees`

performance.

Performance Standards a answer the question, “How will the employees and the

performance manager know when the employee is meeting or exceeding expectation for

his or her position?”

Guidelines for Performance Standards

Keep in mind the following guidelines when writing your performance standards:

Performance standards should be related to the employees` assigned work and job

requirements.

Your reporting system should be adequate to measure and report any quantitative data

you list.

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Quantifiable measures may not apply to all functions. Describe in clear and specific

terms the characteristics of performance quality that are verifiable and that would

meet or exceed expectations.

Accomplishment of organizational objectives should be included where appropriate,

such as cost-control, improved efficiency, productivity, project completion, process

redesign or public service.

Checking Your Standards

After you have written your performance standards, check them against the questions in the

following list:

Are the standards realistic? Standards should be attainable and consistent with what

is necessary to get the job done. Standards for performance, which meets

expectations, represent the minimum acceptable level of performance for all

employees in that position.

Are standards specific? Standards should tell an employee exactly which specific

action and results he or she is expected to accomplish.

Are the standards based on measurable data, observation, or verifiable

information? Performance can be measured in terms of timeliness, cost, quality and

quantity.

Are the standards consistent with organizational goals? Standards link individual

(and team) performance to organizational goals and should be consistent with these

goals.

Are the standards challenging? Standards may describe performance that exceeds

expectations. Recognizing performance that is above expectation or outstanding is

crucial to motivating employee.

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Are the standards clear and understandable? The employees whose work is to be

evaluated on the basis of the standards should understand them. Standards should use

the language of the job.

Are the standards dynamic? As organizational goals, technologies, operations or

experiences change, standards should evolve.

Use of Books and Software for Performance Appraisals

There are number of low cost paperbacks that can b handed out to the managerial staff to help

them with their appraisals. Since the advent o the use of computers, a number of educational

organizations are now using Performance Appraisal software.

Performance now Enterprise is a software tool for logging events, tracking goals, providing

effective feedback and writing employee reviews that maximize the potential of your team.

Flexible enough to adapt to your present review system,

Performance now helps you become a better manager and get the best from your employees.

For a little more upscale package Performance Impact Workplace is easy to use to set goals

for employees, but are having trouble following up on those goals.

Other software such as The Administrative Observer for school systems is one of the more

configurable stand-alone database package, with an intuitive graphic interface, geared

towards the business environment is MINDSOLVE (MVP). MVP is designed as enterprise

level performance management software, incorporating appraisal, development resources,

360 degree feedback, performance logging, etc. While the use of configurable software based

tools are certainty making life easier, the use of such tools are much more valuable.

Research Methodology38 | P a g e

Statement of the Problem

Every business organization large or small spend huge amount of money on Human Resource.

It is necessary therefore to find out how they are performing in order to design their future of

the organization. It may be to develop the employees or to correct the employees or to utilize

employee’s strength.

This study is directed towards probing Performance Appraisal system as tool for employees at

BAJAJ ALLIANZ LIFE INSURANCE.

Research Type

There is social research in a HR Survey with particular reference to Performance Appraisal

as a System for employees at BAJAJ ALLIANZ LIFE INSURANCE.

Sample Design:

It is random sampling techniques where the samples were designed based on the

nature of work, qualification, experience, etc.

Sample Size:

20 Employees Respondents

Tool for collection of Data:

Structured questionnaire is used to collect the data. Copy of questionnaire is placed at

the Annexure of the project report.

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Method of Collecting Data:

The questionnaires were floated to respondents through Researcher where the data

was collected and returned by HR Unit.

Method of Analysis:

1. The collected data were tabulated

2. Percentage of respond was worked out

3. Analysis is based on percentage frequency

4. Weight age is given to high percentage in response factor

5. Evaluation is made based on the analysis and the presumptions inherences are

used, where every data is ambiguous. Definitive evaluation is made every data

is clear.

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Data Analysis & Interpretation

In this system, employees and managers set expectations and prepare plans for

work and development at the beginning of the year. The key responsibilities and

results (KRRs) dimensions and behavioral expectations, and the

criteria/standards for the performance measurement are prescribed and clarified.

Although they may be expressed differently for different jobs, the basic areas of

measurement for all jobs are quality, quantity, cost and timeliness. To ensure

that all employees receive feedback for maintaining or improving productivity,

two documented semi-annual feedback sessions are required. The supervisor

uses discretion to schedule informal feedback based on individual employees’

needs.

Although a case study with a limited number of respondents cannot be widely

generalized, the results should be quite interesting to mangers who would like to

think critically and seek ways to improve performance appraisal systems in

organizations

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Part A: Personal Data

1. To carry out any Project Study personal data needs detailed analysis because it is

basic foundation to understand correct profile of respondent. This shows their

knowledge, mental status and maturity. Educational background to understand the

topic of the study so that they can be related age.

Age Group No. of Respondents Percentage

21-30 14 70

31-40 2 10

41-50 4 20

Total 20 100

From the above data indicates that 70% of respondents are of 21-30 age group, 10% of

respondents are of 31-40 age group and 20% of respondents are of 41-50 age group.

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Gender-

Gender No. of Respondents Percentage

Male 12 60

Female 8 40

Total 20 100

The above data indicates that 60% of respondents are male, rest 40% of respondents are

female.

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Qualification-

Qualification No. of Respondents Percentage

Diploma 2 10

Graduate 6 30

Post Graduate 12 60

Total 20 100

In the above data, it is seen that 10% of respondents are diploma in qualifications, 30% of

respondents are graduates and rest 60% of respondents are post graduate.

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Designation-

Designation No. of Respondents Percentage

Manager 4 20

Officer 10 50

Junior Officer 4 20

VP 2 10

Total 20 100

From the above data, it is seen that 20% of respondents are Managerial post, 50% of

respondents are at officer post, 20% of respondents are junior officer and 10% of respondents

are VP in post.

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Part B: Research Data

1. Is the Performance Appraisal process user friendly?

a. Yes b. No

S.No. Options No. of Respondents Percentage

1 Yes 16 80

2 No 4 20

Total 20 100

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Respondents and Responses-

80% of the respondents are agreed to the above statement

It is user-friendly and easily accessible within the organization. It also provides a

consolidated view.

It captures an individual’s strengths, improvement areas and also captures training

courses recommended.

It gives an opportunity to the employee to accept or decline.

It is very flexible.

20% of the respondents are disagreed to the statement

It is a very easier tool, where employee can fill in short time.

As an employee need to know what is required of them in order to work effectively by

this.

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2. Is Performance Appraisal conducted on time?

a. Yes b. No


1 Yes 12 60

2 No 8 40

Total 20 100

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Respondents & Responses-

60% of the respondents agreed to the above statement

Performance Appraisal process will start on time.

There is a fixed schedule to meet listed in detail at the beginning of the process.

Process will be conducted as per the appraisal period.

40% of the respondents disagreed to the statement

Process end will take long time and unintentionally however measuring quality issues

do cause delays.

Process Cycle should be reduced because there is always delay due to the respective

owners of the employee.

The steps involved in the process are very long as a result.

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3. Does Performance Appraisal process assess fairly?

a. Yes b. No


1 Yes 16 80

2 No 4 20

Total 20 100

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80% of the respondents agreed to above statement

The process assessment is fair and justified with business units.

It is objective process.

Measuring an individual is fair.

The metrics are adequate.


Across Business units does not yield right results.

There are some issues with performing employees not getting proper result of the

appraisal.

360 feedback systems should be there.

There is an element of subjectivity. The presence of Appraiser and reviewer is aimed

at eliminating the subjectivity.

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4. Is Performance Appraisal process simple to understand?

a. Yes b. No


1 Yes 17 85

2 No 3 15

Total 20 100

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It is simple to understand and follow pre-process.

It clears to express as individual his strength and capacity.

It gives an opportunity to show case his achievement.

It helps to understand the required capacity to meet requirements.

10% of the respondents disagreed to the statements

A Performance Appraisal tool should be kept as simple as possible while meeting

objectives.

A Performance Appraisal tools should be based on assessment of work quantity,

quality, and knowledge of job but not personality.

Process cycle time has to be reduced.

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5. Do you receive an orientation on how to conduct appraisal process?

a. Yes b. No


1 Yes 12 60

2 No 8 40

Total 20 100

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Detailed orientation is given to all levels at the beginning of the process.

Various training programs are available and discussed with superiors.


Sometimes process will be failed due to some internal problems after getting

orientated on the Performance Appraisal system.

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6. How much time is spent in preparing for feedback session?

a- 1 hour. b- 2 hour


1 1 hour 8 40

2 2 hour 12 60

Total 20 100

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40% of the respondents agreed to 1 hour statement

More time will be spent if one employee worked under different managers for

different assignments.

It is necessary to know the earlier manager’s feedback on the employee to assess

properly.

In the Performance Appraisal system no records/data are available of confirmation

appraisal and project end appraisal.

60% of the respondents agreed to 2 hours statement

Approximately 2 hours, 1 hour for collecting feedback and brainstorming and 1 hour

for filling Review.

1 hour need to have things documented on how an employee has been appraised.

There different process and have their strengths or improvement plans throughout the

year.

Feedback session involved revision of individual’s accomplishments during the

appraisal period. His/her strengths, improvement areas and training & development.

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7. In your opinion how is overall Performance Appraisal system in

“BAJAJ ALLIANZ LIFE INSURANCE”?

a. Excellent b- Good c- Average d- Poor


1 Excellent 10 50

2 Good 6 30

3 Average 4 20

4 Poor - -

Total 20 100

The above data predicts that the present appraisal system status in the company where

50% of the employees responded to be excellent, 30% respondent to be good, and 20%

responded as average i.e. just satisfied.

Thus the majority of respondents have viewed their opinion that the present appraisal

system is good.

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8. a) Are you satisfied with the current Appraisal system?

a. Yes b. No


1 Yes 14 70

2 No 6 30

Total 20 100

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It is simple to understand and follow pre process.

It is clear to express as individual his strength and capacity.


It helps us to understand the required capacity to meet requirements.


Suggested by some managers to have half yearly appraisal system.

Promotion, salary revisions can be dealt during annual appraisal.

Half yearly appraisal will help in motivating, keeping employees known of peer

strength and improvement areas.

Confirmation appraisal and project end appraisal process needs to be automated.

In the process of performance appraisal cross business unit appraisal process should

be smoothened.

Performance Appraisal should be subject to regular evaluation and review.

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8. b) If not then what are the areas need to be improved?

a. Time b. Process


1 Time 7 35

2 Process 13 65

Total 20 100

The above data predicts that 35% of the respondent need to change the duration of PA

system and rest of the 13 respondents i.e. 65% need to change the process of

performance appraisal.

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9. Do you feel any difficulty in handling them?

a. Yes b. No


1 Yes 4 20

2 No 16 80

Total 20 100

The above data indicates that 80% of the respondents feels no difficulty while handling

performance appraisal system while the rest of the 20% of the respondent feels little

difficulty.

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10. What other process can be included making the appraisal process much better?

a. MBO b. Critical Incident method c. Web based appraisal system


1 MBO 8 40

2 Critical Incident

Method

4 20

3 Web based appraisal

system

8 40

Total 20 100

The above data indicates that equal percentage of respondent need to add MBO as well

as Web based appraisal system in their organization i.e. 40% and the rest 20% of other

needs to include Critical incident Method.

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Present Appraisal System Satisfaction Level-

Particulars Respondents Percentage

Good 12 60

Satisfactory 6 30

Poor 2 10

Total 20 100

The above data indicates the present appraisal system status in the company where

60% of the employees responded to good, 30% responded to satisfactory i.e. just

satisfied and the remaining 10% are not satisfied and who have not responded as poor.

Thus, the majority of the respondents have viewed their opinion that the present

appraisal system is good.

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Efficiency of the present appraisal system in employee development-


Yes 16 80

No 4 20

Total 20 100

The above data shows that 80% respondents are accepting that Performance Appraisal

has aimed at development of the employee, and only 20% of them disagreed to the

present system.

Hence, most of the respondents are agree that Performance Appraisal is aiming to the

career development of the employee.

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Present Appraisal system in setting work targets-


Yes 14 70

No 6 30

Total 20 100

The above data reveals that possibility of setting targets for the different jobs they do

under different department, 70% respondents have said yes for the job they do. 30%

respondents have said no for the qualitative and creative jobs they do.

Therefore, majority of respondents have agreed the possibility of setting work targets.

The target for the job they do even though every job needs certain degree of creativity

which depends upon the nature of job.

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Actions taken after Performance Appraisal-


Useful discussions 11 55

No discussions 4 20

Only failure are discussed 2 10

Genius Feedback is given 3 15

Total 20 100

The above data shows actions taken after the Performance Appraisal by the appraiser the management 55% respondents of them reported they take up useful discussions on the evaluation and results, 4 of them i.e. 20% have denied and says no discussion, 10% said only failures are discussed, no discussion is made on achievement, 15% agreed that they get genius feedback on evaluation.

Thus, majority of respondents told they are useful discussions with appraiser after performance appraisal.

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Availability of feedback in Performance Appraisal system-

Particulars Respondents PercentageYes 17 85No 3 15Total 20 100

The above data distributes whether the present appraisal system is used in getting the feedback from the employees, 85% respondents told the present appraisal system helps in giving the feedback from the employees and only 15% respondents told the existing appraisal system is not helping in getting proper feedback from the employees.

Therefore, majority of the respondents are accepting that the present appraisal system help in getting feedback from the employees.

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FINDINGS

BAJAJ ALLIANZ LIFE INSURANCE follows two types of Appraisal process –

Graphic Rating Scales and Behaviorally Anchored Rating Scaling (BARS) which is

user-friendly and easily accessible within the organization.

Feedback is given to the employees about their performance.

Promotions schemes exist in the organization according to the employees’

performance.

It captures an individual’s strengths, improvement areas & also captures training

courses recommended.

Performance Appraisal process will start on time and process will be conducted as per

the appraisal period.

There is a fixed schedule to meet listed in detail at beginning of the process.

The process assessment is fair and justified with business units.

It is objective process, measuring an individual is fair but the metrics are inadequate.

Across business units does not yield right results.

There are some issues with performing employees not getting proper result of the

appraisal.

Process is clear to express as an individual his strengths and capacity.

69 | P a g e


It helps to understand the required capacity to meet requirements.

A Performance Appraisal system tools should be based on assessment of work

performance not personality.

A Performance Appraisal system tools should be kept as simple as possible while

meeting objectives.

Detailed orientation will be given at all level at beginning of the performance

appraisal process.

Various training programs are available and discussed with superiors.

Sometimes process will be failed due to some internal problem after getting orientated

on the performance appraisal system.

Feedback session involved revisions of individual’s accomplishments during the

appraisal period. His/her strengths, improvement areas and training and development.

More time will be spent if one employee worked under different managers for

assignments.

It is necessary to now the earlier manager’s feedback on the employee to assess

properly.

In Performance Appraisal includes Quantitative and qualitative measures.

It will clarify organizational goals and expectations.

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It provides a mechanism for improving communication between workers and

superiors.

It will decide upon future work requirements and objectives.

By this employee can discuss ideas, comments and suggestions.

Develop an action plan for indentifying strategies which will make it possible for the

employees to achieve the objective discussed.

Performance Appraisal should be developed and implemented in consultation with

employees and superiors.

Performance Appraisal should operate equitable throughout the organization.

Promotions, salary revisions can be dealt during annual appraisal.

Group work and team work exist in an organization.

Majority of the executives give reasons for not completing their targets.

Review and reset of the task is not made uniformly.

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CONCLUSION

Most of the time Performance Appraisal is used for determining compensation increases,

training need identification and for promotions. The Performance Appraisal has delinked

itself from being an instrument of evaluating performance in the organization. Application of

performance and bringing about better performance management practices that enables

organization to improve their performance and bring in a performance driven culture is the

need of the hour rather performance appraisal only.

No Doubt without the commitment of the top management it would just be very difficult to

bring this sort of change. This in fact calls for a cultural change where in emphasis is not only

given to the Outcome or the end result but also on the process and effort made to achieve the

result. While discussing of the process & effort we need to focus on the leadership style, his

approach of consulting others, his ability to learn, his approach as a team member, his effort

in planning his days and week, and his overall orientation for subordinates development. All

this really calls for a different ball games wherein the concerned supervisors are able to

emphasize with his sub-ordinates and is really above to understand his emotional world.

In this era where every individual is competing with each other and where very tight

schedules are drawn without much scope for slippages, there is every probability that

conflicts are going to become a common affair. As such is has become all the more important

that a supervisor makes all out effort to understand emotional world of the sub-ordinate in

terms of his hindering and facilitating factors in terms of achieving his goals, what help the

person growth and his own ambition in the next 3-4 years, what is happening on his family

front.

All this shall only happen if the sub-ordinate is able to see value and a genuine concern in all

this. For this what can be done is that once in a month an effort can be made by the

supervisor to sit his sub-ordinate to sit with his sub-ordinate and have a face to face

interaction in a non threatening atmosphere. What I have personally observed that it charges

the motivation level of an individual considerably and in fact the employee makes all out

effort to achieve the Organizational goals.

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RECOMMENDATION

Though the employees feels that the company is fair in its appraisal process but still

has lot to in terms of making the appraisal process effective so that it results in

enhanced employee satisfaction and helps in retaining key employees of the

company.

The project leaders are dissatisfied with the way responsibilities are distributed. The

company needs to works in this area and bring more clarity in the definitions of roles

and responsibilities.

The Management should design training and development programs, career plans for

their employees’ on the basis of skills, knowledge needs.

Appreciate employees’ on the basis of employees’ work performance by Promotion or

increment in the salaries.

The performance culture of the company is another area where needs to be done to

improve the training regimen so that involvement of the employees is enhanced which

finally would build the morale and productivity would be enhanced.

Employees have doubts about the rewards and feel that the system is not too

transparent. This in the long run unattended would reduce the morale and may lead to

attrition.

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LIMITATIONS

Any research study will be restricted in scope by certain inherent limitations that participated

by the choice of the research design. This study has the following limitations:

Even though the survey was conducted for the employee performance review the

study does not match with the entire population in the company.

Because of time constraints, the sample size is restricted to 20, which may not reflect

the opinion of the entire population in the company.

Since study was restricted to samples. Sample may behave or give different opinions

at different times because of their psychological temperament. This will affect the

study.

Data could be collected from only 20 respondents as they were busy and could not

respond so well to the questionnaires.

Most of the organization hesitates to give confidential HR information which is

needed for the study like expectation in salary, periodical incremental percentage.

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ANNEXURE

QUESTIONAIRE

Part A:

Name of the Respondent : ______________________

Age : ______________________

Gender : ______________________

Qualification : ______________________

Designation : ______________________

Part B:

1. Is the Performance Appraisal process user friendly?

a. Yes b. No

2. Is Performance Appraisal conducted on time?

a. Yes b. No

3. Does Performance Appraisal process assess fairly?

a. Yes b. No

4. Is Performance Appraisal process is simple to understand?

a. Yes b. No

5. Do you receive an orientation on how to conduct appraisal process?

a. Yes b. No

6. How much time is spent in preparing for feedback session?

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a- 1 hour b- 2 hour

7. In your opinion how is overall performance appraisal system in

“BAJAJ ALLIANZ LIFE INSURANCE”?

a. Excellent b- Good c- Average d- Poor

8. a) Are you satisfied with the current appraisal system?

a. Yes b. No

b) If not then what are the areas need to be improved?

a. Time b. Process

9. Do you feel any difficulty in handling them?

a. Yes b. No

10. What other process can be included making the appraisal process much

better?

a. MBO b. Critical Incident Method c. Web based Method.

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BENCHMARKING

Performance appraisal is very important for any company. It helps to make the companies

employee work better and show good result for the company too. This helps the company to

turn out to be profit making company.

As in BAJAJ ALLIANZ LIFE INSURANCE we are using the “Rating scales” or “Fair

comparison method” mostly to grade the performance of the employees. The method used by

the company is very fair and it is very easy to be adopted by the personnel’s. This method is

very convenient to be used. But the drawback associated with the method is that it has now

became an out dated method to be used because there are fifty percent chances of biasness to

occur for a particular employee by the raters.

After the survey and the conversation by the people of other company we came to know that

they have introduced the 360-degree performance appraisal in the company. Before they were

using the same method as used by BAJAJ ALLIANZ LIFE INSURANCE at times they used

“Forced choice method” also to rate the performance, which affected the companies working

to a great extent.

But when they realized that they are having complains from the workers, staff etc. they

decided to go for a change and now they incorporated 360-deree performance appraisal, the

result of using this method is that everyone in the company is satisfied by it.

Hence accordingly to my views I would also suggest the company to go for the change it the

method adopted by them for better results and employee satisfaction.

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BIBLIOGRAPHY

1. V S P Rao, Human Resource Management, Anurag Jain for Excel Books,

New Delhi.

2. Dr. K Ashwathappa, Human Resource & Personal management, TATA

McGraw-Hill Publishing Company limited, New Delhi.

3. Prem Chadha, Performance Management

4. www.appraisals.naukrihub.com

5. www.performance-appraisal.com

6. www.bajajallianz.com

7. Wikipedia -An Encyclopedia

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http://www.performance-appraisal.com/

http://www.appraisals.naukrihub.com/

59114485 project report on performance appraisal

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