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Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 1
A project work on
“Effectiveness Of Performance Appraisal System at
Bharat Electronics”
A DISSERTATION PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE AWARD OF MBA DEGREE OF
BANGALORE UNIVERSITY
submitted by: SWAPNA.M.U
Reg. No – 03XQCM6110
UNDER THE GUIDANCE OF Dr.V.Prakash
Professor, MPBIM (INTERNAL GUIDE)
Mrs.Laveena.M.Michael
Personnel Officer/Central and Enquiry officer, Bharat Electronics Ltd.
(EXTERNAL GUIDE)
M. P. BIRLA INSTITUTE OF MANAGEMENT
# 43, Race Course Road, BANGALORE – 560001
(2003-2005 Batch)
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 2
DECLARATION I hereby declare that the research work embodied in this dissertation entitled
“Effectiveness of Performance Appraisal System at Bharat Electronics Ltd”, has
been carried out by me under the guidance and supervision of Dr. V.Prakash, Adjunct
Professor, M.P. Birla Institute of Management, Bangalore (Internal Guide) and
Laveea.N.Michael, personnel officer/central and enquiry officer, BEL, Bangalore
(External guide).
I also declare that this dissertation has not been submitted to any University/Institution
for the award of any Degree/Diploma.
Place: Bangalore (SWAPNA.M.U) Date: Reg No. 03XQCM6110
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 3
ACKNOWLEDGEMENT
I am extremely grateful to Mr. Changappa, AGM/PER, Corporate Office, Bangalore in
fetching me the great opportunity to carry out my project work in Bharat Electronics.
I would like to express my immense gratitude to Dr. V Prakash, Adjunct Professor of
M.P.Birla Institute of Management, associate Bharatiya Vidya Bhavan, Bangalore for his
guidance, continuous encouragement and valuable suggestions at every stage of my
project.
I would like to thank Mr. Sudhakar Chowdry, Manager (central/personnel), BEL,
Bangalore for giving me the opportunity to conduct the study.
My sincere gratitude to Mrs. Laveena.M.Michael, personnel officer/central and enquiry
officer,BEL for sharing her precious time and imparting her invaluable knowledge and
guidance.
I am very thankful to all the respondents and the executives/employees for their
cooperation in the course of my study.
I extend my deep sense of gratitude to all my Friends and Family who have directly or
indirectly encouraged and helped me to complete my project successfully.
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 4
Table Of Contents
Chapter Title Page No.
Executive Summary 1
1 Introduction
Background of the study
Performance Appraisal and its importance
3
5
2 Company Profile
Performance Appraisal process in BEL
15
24
3 Review of literature
Purpose of the review of literature
Methodology of the review of literature
Summary of Review of Literature
36
36
41
4 Research methodology
Problem Statement
Objectives of the Research
Type of Research
Sampling Technique
Sample size
Instrumentation techniques
Actual collection of data
Interpretation and analysis
Limitations of the research
42
42
42
42
42
43
43
43
43
5 Data Analysis and Interpretation 44
6 Findings of Research 89
7 Recommendations 93
Annexure
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 5
List Of Tables table
no. Table Description page
no.
1 Response towards the Awareness of the Performance Appraisal System
followed IN BEL
46
2 Level of satisfaction towards the performance appraisal system followed in BEL
47
3 Response towards the performance standards if they are clear and
achievable
48
4 Response towards knowledge about reporting and reviewing officers 49
5 Response towards training needs for appraisers 50
6 Response towards if counseled to improve performance 51
7 Response towards BEL spending of considerable amount of time and
attention for the Performance appraisal process
52
8 Response towards the Validity of Self Appraisal 53
9 Response towards the Knowledge of Traits/Attributes 54
10 Response towards Sufficiency of Traits 55
11 Response towards the rating of the executives being done by Reviewing
and Reviewing officers
56
12 Response towards the sufficiency of help and guidance provided by
Reporting/Reviewing officers
57
13 Response towards discussion of executives’ performance with
reporting/reviewing officer without any fear/inhibitions
58
14 Response towards the development of new/better managerial qualities and
skills through the training program identified through the performance
appraisal
60
15 Response towards the need for a performance appraisal for the current
designation held by the executives
61
table
no. Table Description Page
no.
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 6
16 Response towards the existence of performance related communication
gap b/w rater and ratee
62
17 Response towards review of present performance appraisal system 63
18 Response towards the degree of mutual understanding, possibility of an
unbiased assessment, discovering potential, fulfilling potentials
64
19 Response towards the Training needs identified through the Performance
Appraisal
67
20 Response towards the type of the training programme conducted in the
company
68
21 Response towards the effectiveness of training program in making an
employee confident in terms of Managerial and other skills
70
22 Response towards the overall feeling about the Performance Appraisal
system
71
23 Response towards Level of interpersonal relationship affecting the
appraisal
73
24 Response towards the appraisee getting feedback after the appraisal 75
25 Response towards the executives getting counseling and training (if
needed) after the performance appraisal and feedback
76
26 Response towards the avoidance of criticism 78
27 Response towards importance being given to the executive’s behaviour
rather than on his or her personal characteristics.
80
28 Response towards the rater trying to fully understand the ratee’s job duties
and responsibilities
81
29 Response towards the company setting the policies from time to time
concerning who should evaluate, when and how often
82
30 Response towards problems while doing evaluation 83
31 Response towards problems while doing evaluation 85
32 Response towards the rater advocating a method for evaluation 87
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 7
List Of Charts table
no. Chart Description page
no.
1 Response towards the Awareness of the Performance Appraisal System
followed IN BEL
46
2 Level of satisfaction towards the performance appraisal system followed in BEL
47
3 Response towards the performance standards if they are clear and
achievable
48
4 Response towards knowledge about reporting and reviewing officers 49
5 Response towards training needs for appraisers 50
6 Response towards if counseled to improve performance 51
7 Response towards BEL spending of considerable amount of time and
attention for the Performance appraisal process
52
8 Response towards the Validity of Self Appraisal 53
9 Response towards the Knowledge of Traits/Attributes 54
10 Response towards Sufficiency of Traits 55
11 Response towards the rating of the executives being done by Reviewing
and Reviewing officers
56
12 Response towards the sufficiency of help and guidance provided by
Reporting/Reviewing officers
57
13 Response towards discussion of executives’ performance with
reporting/reviewing officer without any fear/inhibitions
58
14 Response towards the development of new/better managerial qualities and
skills through the training program identified through the performance
appraisal
60
15 Response towards the need for a performance appraisal for the current
designation held by the executives
61
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 8
table
no. Chart Description Page
no.
16 Response towards the existence of performance related communication
gap b/w rater and ratee
62
17 Response towards review of present performance appraisal system 63
18 Response towards the degree of mutual understanding, possibility of an
unbiased assessment, discovering potential, fulfilling potentials
64
19 Response towards the Training needs identified through the Performance
Appraisal
67
20 Response towards the type of the training programme conducted in the
company
68
21 Response towards the effectiveness of training program in making an
employee confident in terms of Managerial and other skills
70
22 Response towards the overall feeling about the Performance Appraisal
system
71
23 Response towards Level of interpersonal relationship affecting the
appraisal
73
24 Response towards the appraisee getting feedback after the appraisal 75
25 Response towards the executives getting counseling and training (if
needed) after the performance appraisal and feedback
76
26 Response towards the avoidance of criticism 78
27 Response towards importance being given to the executive’s behaviour
rather than on his or her personal characteristics.
80
28 Response towards the rater trying to fully understand the ratee’s job duties
and responsibilities
81
29 Response towards the company setting the policies from time to time
concerning who should evaluate, when and how often
82
30 Response towards problems while doing evaluation 83
31 Response towards problems while doing evaluation 85
32 Response towards the rater advocating a method for evaluation 87
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 9
Certificate
I hereby declare that the research work embodied in this dissertation entitled
“Effectiveness of Performance Appraisal System at Bharat Electronics” Bangalore, has
been undertaken and completed by Miss. Swapna.M.U (reg no: 03XQCM6110) under
my guidance and supervision.
I also certify that she has fulfilled all the requirements under the covenant governing the
submission of dissertation to the Bangalore University for the award of MBA degree.
Place: Bangalore (Dr.V.Prakash) Date: Adjunct Professor
MPBIM, Bangalore.
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 10
Certificate I hereby certify that this dissertation is an offshoot of the research work undertaken and
completed by Miss Swapna.M.U (reg no. 03XQCM6110) under the guidance of
Dr.V.Prakash, Adjunct Professor, MPBIM, Bangalore (Internal Guide) and
Mrs.Laveena.M.Micheal, Personnel Officer/Central and Enquiry Officer, BEL,
Bangalore (External Guide).
Place: Bangalore (Dr. N.S. Malavalli) Date: Principal,
MPBIM, Bangalore
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 11
Executive Summary Bharat Electronics was established in the year 1954 as a Public Sector Enterprise under
the Ministry of Defense, primarily to meet the defense electronic equipment requirements
of the country. Over the years, it has diversified its activities to cover not only the defense
forces but also various other areas such as the Paramilitary Forces, Department of
Telecommunications, All India Radio, Doordarshan, Railways, Meteorological
Department, Energy Conservation and IT sector. Today, Bharat Electronics is a multi-
unit, multi-product Company with nine manufacturing units located in different parts of
the country.
Human Resource Management is a management function that helps managers to Recruit,
Select, Train and Develop members for an organization. Performance appraisal may be
understood as the assessment of an individual’s performance being measured against
such factors as job knowledge, quality and quantity of output, initiative, leadership
abilities, supervision, dependability, co-operation, judgement, versatility, health and the
like.
The Performance Appraisal System needs to be very transparent and helpful both to the
employees and to the organization. The need is to get a feedback from appraisers and
appraisees, working in the organization, about the current state of the PAS. Only after
analyzing the current state of PAS, the human resource managers can go to the next step
of improvements in PAS. A survey is therefore required.
The research is undertaken to ascertain the views/opinions of the Raters and Ratees
working with the company and to suggest appropriate modifications about the existing
PAS.
Structured questionnaire was prepared and discussed personally with the respondents to
get their responses.
The sample size will be restricted to 40 executives chosen on random sampling method.
(Stratified).
The findings indicate that the executives in general, the raters and the ratees are very well
aware of the appraisal system followed in the company. The knowledge about the
appraisal system is also found to be satisfactory. But there exists a performance related
communication gap between the appraiser and the appraisee. The responses of the raters
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 12
show that they encounter problems with the standards of evaluation. It was also found
that appraisees don’t get timely feedback from their appraisers. Training/counseling was
provided occasionally to the ratees to improve their performance.
A suitable recommendation needs to be provided in this front. Incorporating a suitable
modification in the existing performance appraisal system can reduce the problems faced
by the raters and ratees. The following recommendations are made:
Appraisee participation in the creation of their own performance goals and development
plans; Performance targets should be set in the beginning of the year; Training should be
provided to fill up forms; Frequent mini-appraisals and feedback sessions should be
conducted; Multi-source assessment of executive behavioral competencies; Transparency
in the system; Atomization of the whole appraisal process; Introduction of 360-degree
appraisal system.
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 13
INTRODUCTION
Background of the Study Human Resource Management is a management function that helps managers to Recruit,
Select, Train and Develop members for an organization. HRM is concerned with the
people’s dimension in organizations. HRM is a series of integrated decisions that form
the employment relationship; their quality contributes to the ability of the organizations
and the employees to achieve their objective. Since every organization is made up of
people, acquiring their services, developing their skills, motivating them to higher levels
of performance and ensuring that they continue to maintain their commitment to the
organizational objectives. This is true, regardless of the type of organization, government,
business, education, health, recreation, or social action. Thus, HRM refers to set of
programmes; functions and activities designed and carried out in order to maximize both
employees as well as organizational effectiveness.
Objectives of HRM The primary objective of HRM is to ensure the availability of a competent and willing
workforce to an organization. Beyond this, there are other objectives, too.
Specifically, HRM objectives are four fold:
1.Societal
2.Functional
3.Organizational
4.Personal
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 14
HRM objectives - Supporting Functions
1.Societal Objectives Legal Compliance
Benefits
Union Management relations
2.Organizational Objectives Human resource planning
Employee relations
Selection
Training and Development
Appraisal
Placement
Assessment
3.Functional Objectives Recruitment and selection
Appraisal
Placement
Assessment
Training and Development
4. Personal Objectives Personal growth
Learning
Placement
Compensation
Assessment
Job-Satisfaction
Recognition
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M P Birla Institute of Mgmt 15
PERFORMANCE APPRAISAL
The History Of Performance Appraisal 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 resources 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 were
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.
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 16
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.
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.
Whether this is an appropriate use of performance appraisal - the assignment and
justification of rewards and penalties - is a very uncertain and contentious matter.
Basic Purposes
Effective performance appraisal systems contain two basic systems operating in
conjunction: an evaluation system and a feedback system.
The main aim of the evaluation system is to identify the performance gap (if any). This
gap is the shortfall that occurs when performance does not meet the standard set by the
organization as acceptable. The main aim of the feedback system is to inform the
employee about the quality of his or her performance. (However, the information flow is
Effectiveness of PAS Bharat Electronics
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not exclusively one way. The appraisers also receive feedback from the employee about
job problems, etc.)
One of the best ways to appreciate the purposes of performance appraisal is to look at it
from the different viewpoints of the main stakeholders: the employee and the
organization.
Employee Viewpoint:
From the employee viewpoint, the purpose of performance appraisal is four-fold:
(1) Tell me what you want me to do
(2) Tell me how well I have done it
(3) Help me improve my performance
(4) Reward me for doing well.
(From Cash, 1993)
Organizational Viewpoint:
From the organization's viewpoint, one of the most important reasons for having a system
of performance appraisal is to establish and uphold the principle of accountability.
For decades it has been known to researchers that one of the chief causes of
organizational failure is "non-alignment of responsibility and accountability." Non-
alignment occurs where employees are given responsibilities and duties, but are not held
accountable for the way in which those responsibilities and duties are performed. What
typically happens is that several individuals or work units appear to have overlapping
roles.
The overlap allows - indeed actively encourages - each individual or business unit to
"pass the buck" to the others. Ultimately, in the severely non-aligned system, no one is
accountable for anything. In this event, the principle of accountability breaks down
completely. Organizational failure is the only possible outcome.
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 18
Formal versus Informal appraisal Formal appraisals usually occur at specified time periods-once or twice a year. Formal
appraisals are most often required by the organization for the purpose of employee
evaluation.
Informal performance appraisal can occur whenever the supervisor feels the needs for
communication. Many organizations encourage a mixture of both formal and informal
appraisals. The formal appraisal is most often used as primary evaluation. However, the
informal appraisal is very helpful for more performance feedback. Informal appraisals
should not take place of formal performance evaluation.
Whose performance should be rated? To the question as to whose performance should be rated, the answer is obvious-
employees. When we say employees, is it individuals or teams? Specifically, the ratee
may be defined as the individual, work group, division, or organization. It is also possible
to define the ratee at multiple levels. For example, under some conditions, it may be
desirable to appraise performance both at the work-group level for merit-pay increases
and at the individual level to assess training needs.
Who are raters? Raters can be immediate supervisors, specialists from the HR department, department,
subordinates, peers, committees, clients, self –appraisals, or a combination of several.
Problems of rating Performance appraisals are subject to a wide variety of inaccuracies and biases referred to
as ‘rating errors’. These errors occur in the rater’s observations, judgement, and
information processing, and can seriously affect assessment results. The most common
rating errors are
• Leniency or severity
• Central tendency
• Halo effect
• Rater effect
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• Primacy and Recency effects
• Perceptual set
• Performance dimension behaviour
• Spill over effect
• Status effect
Solving raters problems The best way to overcome these problems is to providing training to the raters. From a
practical point of view, several factors, including the extent to which pay is related to
performance ratings, union pressure, turnover rates, time constraints and the need to
justify ratings may be more important than training, influencing the ratings that raters
actually give. This means that improving rating systems involves not just training the
raters but rectifying outside factors such as union pressure. And it means that a rater
training, to be effective, should also address real-life problems such as the fact that union
representatives will try to influence supervisors to rate everyone high.
Training helps to improve the appraisal system by overcoming distortion that occurs due
to the raters’ errors such as hal o, leniency, central tendency and bias. Training of raters
must help strengthen the factors that tend to improve accuracy of ratings and weaken
those that lower the accuracy of the performance measurement.
What should be rated? One of the steps in designing an appraisal programme is to determine the evaluation
criteria. It is obvious that the criteria should be related to the job. The six criteria for
assessing performance are:
• Quality
• Quantity
• Timeliness
• Cost effectiveness
• Need for supervision
• Interpersonal impact
Effectiveness of PAS Bharat Electronics
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These criteria relate to past performance and behaviour of an employee. The first four -
quality, quantity, timeliness and cost effectiveness are objective in nature. The last two -
need for supervision and interpersonal impact are subjective. Objective measures are
quantifiable and are therefore highly useful in measuring the performance of an
employee. But performance of employees should not always be evaluated against
quantifiable measures. Subjective measures are dependent upon human judgement. They
are prone to different kind of errors stated earlier such as leniency or severity, central
tendency, halo and the like. To be useful, subjective measures must be based on a careful
analysis of the behaviour viewed as necessary and important for effective job
performance.
Timing of Evaluation How often should an employee be assessed? The general trend is to evaluate once in
three months, or six months, or once in a year. 70% of the organizations conduct
performance appraisal once a year, according to a survey conducted in 1997 by Arthur
Anderson. Newly hired employees are rated more frequently than the older ones.
Frequent assessment is better than phased evaluation. Feedback in the latter is delayed
and the advantage of timely remedial measures by the employee is lost. Frequent
evaluation gives constant feedback to the ratee, thus enabling him/her to improve
performance if there is any deficiency. The performance of trainees and probationers
should be evaluated at the end of respective programmes.
Methods of Appraisals The last to be addressed in the process of designing an appraisal programme is to
determine method(s) of evaluation. Numerous methods have been devised to measure the
quantity and quality of employee’s job performance. Each of the metho ds discussed
could be effective for some purposes, for some organizations. None should be dismissed
or accepted as appropriate except as they relate to particular type of employees. Broadly
all approaches can be classified into:
• Past-oriented methods
• Future-oriented methods
Each group has several techniques. Some of them are explained in the following section.
Effectiveness of PAS Bharat Electronics
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Behavioral Anchored Rating Scales
The term used to describe a performance rating that focuses 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 are:
• Behavioral observation scales
• Behavioral expectations scales
• Numerically anchored rating scales
Checklists
The term used to define a set of adjectives or descriptive statements. If the rater believes
the employee possessed a trait listed, the rater checks the item; if not, the rater leaves the
item blank. Rating score from the checklist equals the number of checks.
Critical Incident Technique
The term used to describe a method of performance appraisal that makes lists of
statements of very effective and very ineffective behavior for employees. The lists are
combined into categories, which vary with the job. Once the categories are developed and
statements of effective and ineffective behavior provided, the evaluator prepares a log for
each employee. During the evaluation period, the evaluator records examples of critical
behaviors in each of the categories, and the log is used to evaluate the employee year end.
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,
statements that apply to the employee. The statements are weighted and summed to at,
effectiveness index.
Forced Distribution
The term used to describe an appraisal system similar to grading on a curve. The
evaluators are asked to rate employees in some fixed distribution of categories. One way
to do this is to type the name of each employee on a card and ask the evaluators to sort
the cards into piles corresponding to rating.
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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. The number of characteristics can vary from 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 checks off a location relative to the evaluators rating.
Narrative or Essay Evaluation
This appraisal method asks the evaluator to describe strengths and weaknesses 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 Objectives
The management by objectives performance appraisal method has the supervisor and
employee get together to set objectives in quantifiable terms. The appraisal method is
worked to eliminate communication problems by the establishment of regular meetings,
emphasizing results, and by being an ongoing process where new objectives have been
established and old objectives are modified as necessary in light of changed conditions.
Paired Comparison
The term used to describe an appraisal method for ranking employees. First, the names of
the employees to be evaluated are placed on separate sheets in a pre-determined order, so
that each person is compared with all other employees to be evaluated. The evaluator
then checks the person he or she feels has been the better of the two on the criterion for
each comparison. Typically the criterion is the employees over all ability to do the
present job.
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.
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M P Birla Institute of Mgmt 23
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.
Performance Interview
Performance Interview is another step in the appraisal process. Once the Appraisal has
been made of employees, the raters should discuss and review the performance with the
ratees, so that they will receive feedback about where they stand in the eyes of the
superiors. Feedback is necessary to effect improvement in performance, especially when
it is adequate. Specifically Performance Interview has three goals
• To change behaviour of employees’ whose performance does not meet
organizational requirements or their own personal goals.
• To maintain the behaviour of employees who perform in an acceptable manner, a
• To recognize superior performance behaviour so that they will be continued.
Use of appraisal data The final step in the evaluation process is the use of evaluation data. The HR department
must use the data and information generated through performance evaluation. In one way
or the other, data and information outputs of a performance appraisal programme can
critically influence employer-employee reward opportunities. Specifically the data and
information will be useful in the following areas of HRM
• Remuneration administration
• Validation of selection programmes
• Employee training and development programmes
• Promotion, transfer and lay-off decisions
• Grievance and discipline programmes
• HR planning
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Performance Management verses Performance Appraisal
The shift from performance appraisal to performance management requires a shift in
focus from a single event to a continuous process. The process provides employees with
direction and support via a detailed performance plan composed of goals, action steps,
measurements, and coaching throughout the yearlong cycle.
Performance management is different from the single appraisal because it:
• Begins with planning at the beginning of the year to clarify job expectations and
accountabilities between employee and manager
• Eliminates current employee concerns that expectations are vague or not
articulated
• Turns the appraisal document and appraisal meeting into the year-end feedback
summary, the last of many meetings on performance.
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COMPANY PROFILE
Organization Profile Bharat Electronics was established in the year 1954 as a Public Sector Enterprise under
the Ministry of Defense, primarily to meet the defense electronic equipment requirements
of the country. Over the years, it has diversified its activities to cover not only the defense
forces but also various other areas such as the Paramilitary Forces, Department of
Telecommunications, All India Radio, Doordarshan, Railways, Meteorological
Department, Energy Conservation and IT sector. Today, Bharat Electronics is a multi-
unit, multi-product Company with nine manufacturing units located in different parts of
the country. Bharat Electronics Ltd.,’ s sales turnover during 2002-03 was Rs. 1,715
crores. The company has targeted a minimum growth rate of about 15 per cent per annum
during the next five years.
Bharat Electronics totally has nine manufacturing units with its Corporate and Registered
Office in Bangalore. Bangalore unit is the mother unit established in 1954, situated at
Jalahalli in Bangalore. The units along with their year of establishment are as follows:
• Bangalore (Karnataka) 1954
• Ghaaziabad (U.P.) 1974
• Pune (Maharastra) 1979
• Machilipatnam (A.P.) 1983
• Punchkula (Harayana) 1985
• Chennai (Tamil Nadu) 1986
• Taloja (Maharastra) 1986
• Kotdwara (Uttaranchal) 1986
• Hyderabad (A.P.) 1986
Bharat Electronics started its activities by manufacturing basic communication equipment
for the Defense. At this stage, Bharat Electronics Ltd., depended on overseas
Effectiveness of PAS Bharat Electronics
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technologies for its operations. Bharat Electronics Ltd., gradually consolidated its
technology base and graduated into the design and development of its own equipment.
Ties with Defense Research and Development Laboratories were forged and
strengthened.
Mission Statement: To be the market leader in Defense Electronics and in other chosen fields and products.
Objectives:
• To become a customer-driven company supplying quality products at competitive
prices at the expected time and providing excellent customer support.
• To achieve growth in the operations commensurate with the growth of
professional electronics industry in the country.
• To generate internal resources for financing the investments required for
modernization, expansion and growth for ensuring a fair return to the investor.
• In order to meet the Nation's strategic needs, to strive for self-reliance by
indigenisation of materials and components.
• To retain the technological leadership of the company in Defence and other
chosen fields of electronics through in-house Research and Development as well
as through collaboration/co-operation with Defence/National Research
Laboratories, International Companies, Universities and Academic institutions.
• To progressively increase overseas sales of its products and services. To create an
organisational culture which encourages members of the organisation to realise
their full potential through continuous learning on the job and through other HRD
initiatives.
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Strategic Business Units Keeping in view the changed business environment, the Bangalore unit, the biggest unit
of the Company, was reorganized into six independent Strategic Business Units in 2000-
2001. They are:
1. Military Communications and Electronic Warfare Equipment
2. Military Radars
3. Naval Systems
4. Telecommunication and Broadcasting Systems
5. Components
6. Export Manufacturing
This restructuring was carried out to provide greater focus on specific areas of business
and improved response time to customer needs in a global business environment. Each
SBU will have independent resources of Development and Engineering (D&E),
Manufacturing, Quality Assurance, Marketing, Finance and Personnel within itself to
support its business operations. The intension here is to equip each SBU with necessary
infrastructure, provide resources and operational freedom the way they are available in
other units of Bharat Electronics Ltd. The Head of each SBU will report to the Executive
Director (ED) and will be suitably empowered so that they are accountable for growth
and profitability of the SBU’s.
Product Profile Bharat Electronics has remained the leader in professional electronics for the last 3
decades by developing and producing state of the art equipments, components, and
systems for professional and entertainment electronics industries. The company’s in
depth expertise covers a wide range in the areas of radio communication, radar,
broadcasting and other areas of professional electronics.
Areas of Production 1. Defense Communication
2. Telecommunication
3. Satellite communication
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4. Radar and sonar
5. Sound and vision broadcasting
6. Opto-electronics
7. Medical electronics
8. Electronic components
PRODUCT PROFILE AT BANGALORE COMPELX
Communications:
• High frequency / Very high frequency man packs, mobile and static Trans-
receivers / Transmitters / Receivers.
• Digital switching systems (time division modular exchange).
• Automatic Electronic Switch, Digital Trunk Units, Data Concentrator.
• Global Positioning System Receiver.
• Universal Emergency Communication System for Railways.
Satellite Communication (SATCOM):
• Satellite Communication Equipment in extended C, S and Ku Bands.
• Fly Away Terminals
• VSATs
• TV uplink earth stations.
• Intelsat F3 earth stations
• Subsystems, Modems, Amplifiers, Up/Down Converters.
Sound and Vision Broadcasting [T&Bs]:
• Sound Broadcast Transmitters and Studio Equipment for AIR.
• Mobile Broadcast Station.
• Television Broadcast Transmitters
• Cable TV Head End Systems.
• Television Studio Equipment.
• TV De-modulators.
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Radar:
• Gun Control Radar.
• Mortar Locating Radars.
• C Band Coherent Monopoles Tracking Radar (PCMC)
• Naval Radar (Tracking/Surveillance/Fire Control/Navigational)
• Battle Field Surveillance Radar
• Active and Passive Radar for navigation and attack
• Fire Control Systems for the Navy
• Data Handling Systems
• Optical Director System for Gun Control.
Others:
• Stimulators and Trainers
• Electronic Voting Machines
• Space Electronic Items
• Software Development
• Projects and Consultancy Works
• Integrated Fish-finder cum Navigational Guidance Systems
• Vessel Identification System
• Energy savers for Air Conditioners
• Alarum Systems for Railway Unmanned level crossings
• Pager Amplifier / UHF paging Transmitters
• Cockpit Display systems for LCA
• PC Mother Boards
Components:
SEMICONDUCTORS:
• Silicon Devices
• Integrated Circuits
• Hybrid Micro Circuits
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• Liquid Crystal Displays, Display Boards and Systems
PASSIVE COMPONENTS:
• Quartz Crystals, Quartz Crystal Oscillators and Filters.
• Ceramic Capacitors and Feed Through
ELECTRON TUBES:
• Transmitting Tubes
• Microwave Tubes
• Vacuum Interrupter Tubes.
Customer Profile of Bharat Electronics
Defense Sector:
1) Army Tactical & Strategic communication, equipment and systems, secrecy
equipment, digital switches, battlefield surveillance radars, opto-electronics
instruments, tank fire control system, stabilizer system, simulators and trainers.
2) Navy Navigational surveillance, fire control radars, IFF, SONAR system,
Torpedo Decoys, display system, EX system, simulator communication
equipment and system. Control radars, IFF, SONAR system, Torpedo Decoys,
display system, EX system, simulator communication equipment and system.
3) Air force Surveillance and tracking radar, communication Equipment and
system, IFF & EW system, Electronic warfare system.
Non – Defense Sector:
1) Para-military Communication equipment system.
2) Space Department Precision tracking radar, ground electronics, flight and on
board sub system.
3) AIR (All India Radio) MW, SW and FM transmitters.
4) Doordarshan Low medium and high power transmitters, studio equipment and
OB Vans, camera antennas, mobile and Transportable satellite uplinks.
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5) Ministry of Education (NCERT) TV studios on turnkey basis for educational
programs.
6) Department of Telecommunications Transmission equipment (microwave and
UHF) and PCM multiplex, Rural and main automatic exchanges, Flyaway
satellite terminals, solar panels for rural exchanges.
7) VSNL MCPC VSATS, SCPC VSATS, flyaway earth station, hub stations,
up/down converter, LNA modem.
8) Civil Aviation Airport surveillance radar, secondary Surveillance radar.
9) Meteorological Department Cyclone warning and multipurpose meteorological
radar.
10) Power Sector Satellite communication equipment.
11) Medical & Healthcare Clinical Equipment for metros Microwave radio relays.
12) Railways Communication equipment
Components:
Defense sector Transmitting tubes, Microwave tubes, Laser, Batteries, Semiconductors,
Discrete, Hybrid and Integrated Circuits.
Non-defense sector:
1) AIR & DD Transmitting tubes, microwave tubes, Vacuum capacitors.
2) Telephone Industry Integrate circuit, crystals.
3) Entertainment Industry B/W TV tubes, silicon transistors, Integrated circuits,
bipolar and CMOS piezo electric crystals, ceramic capacitors & SAW filters.
4) Medical and Healthcare system X-ray tubes, Identity card systems software,
office automation software, LCD online public info display system, and
communication networking VSAT network.
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Bangalore Complex The Bangalore complex has seven Strategic Business Units (SBUs), they are:
1. Military Radar
2. Naval Systems
3. Military Communications and Electronic Warfare
4. Transmissions and Broadcasting
5. Components
6. Export Management
7. Central Services
Each SBU contains the following departments:
1) Finance
• Pay Roll
• Purchase Finance
• Bills Payable (foreign and local)
• Bills Receivable (billing customers)
• Material Accounts and Costing
2) Production
• Production control
• Assembly
• Fabrication
• Machine shop
3) Testing
4) Material Management
• Purchase – stores, material inspection, sub-contract, stores.
• Industrial Engineering Department
• Sales
• Development and Engineering [R&D]
• Personnel (Indirect)
• Computer Center
• Quality Assurance
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Bharat Electronics Ltd., at a Glance: -
Type of sector Public Sector Unit
Nature of organization Manufacturer of defense products
Website www.bel-india.com
Head of the organization Dr. V.K.Koshy, chairman & MD
Head of Bangalore unit Mr. Y. Gopala Rao – ED
Directors Mr. Y Gopala Rao – ED [BG]
Mr.V.V.G Rao – ED (other units)
Mr. H.S. Shankar – R&D
Mr. S.C. Khanna – C & MS.
Mr. Bhaskar Naidu – Finance.
Mr. V. Ammineedu – Personnel.
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PERFORMANCE APPRAISAL FOR EXECUTIVES AT BHARAT ELECTRONICS
The performance appraisal is designed as an open system, which will be used to arrive at the mutually agreeable performance standards and evaluate actual performance based on these standards. This system aims to improve performance and assess potential, not only through the control mechanism of the performance appraisal interview and evaluation, but also through informal and formal progress reviews. Performance appraisal proforma consists of the following sections: PART-A SELF APPRAISAL to be filled by appraisee PART-B PERFORMANCE APPRAISAL PART-C POTENTIAL APPRAISAL to be filled in by reporting and reviewing officers PART-D GENERAL TRAITS
GENERAL COMMENTS to be filled in by reporting and reviewing officers and functional head
PART-E DEVELOPMENT PLAN to be filled in by reporting AND TRAINING NEEDS and Reviewing officer PART –F SUMMARY OF ASSESSMENT to be filled in by corporate Personnel GUIDANCE FOR ASESSORS:
1. PARTS B and E should be filled in after conducting a performance appraisal interview with the appraisee not only at the end of the year but in between i.e., at least twice a year. PART C and D are to be treated as ‘confidential reports’.
2. Assessment should be based on direct knowledge of executive’s performance during the period under review.
3. When rating each factor, it is necessary to consider the difficulty, complexity and other factors, which influence the result obtained.
4. Each factor may be allotted marks ranging from 1 to 10. 5. Ratings should reflect the typical normal performance. Influence by recent, a
typical instances of success or failure, is avoided. 6. Appraisee will be given opportunity to demonstrate the potential for a specific
factor. Assessors should be concrete while recommending any training that he considers essential in PART-E.
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Definition Of Parameters
PART B
ACCOMPLISHMENT OF TASKS
Extents to which targets set/ tasks assigned were accomplished
QUALITY OF DICISION MAKING Extent to which decisions were the best in the given circumstances and were free from negative consequences
IMPLEMENTATION OF TORQUE Extent t which the executive contributed to the implementation of TORQUE
UTILISATION OF RESOURCES Extent to which resources, including time, were effectively utilized to reduce cost on operations under executive’s control
TRAINING & DEVELOPMENT OF SUBORDINATES
Extents to which efforts were made to develop competence & motivation levels of subordinates
MAINTENANCE OF DISCIPLINE Extent to which the executives was able to maintain shop floor/office discipline
PART C
PROFESSIONAL COMPETENCE
Degree to which executives possesses relevant professional knowledge and functional skills.
CONCEPTUAL ABILITY
Degree to which the executive is able to- 1. Grasp the essentials of the job
related problems 2. Exercise judgment to arrive at
appropriate decisions
INTER-PERSONAL SKILLS Ability to relate to the people and obtain their cooperation
COMMUNICATION Clarity of thought and expression INITIATIVE & INTREPRENUERSHIP Ability to be self directed & to take
legitimate risks the interest of work
TEAM BUILING
Ability to inspire & motivate for building commitment to the company’s mission, objectives and values
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commitment to the company’s mission, objectives and values
PLANNING ABILITY
Degree to which executive anticipates problems and work needs and develops effective plans in relation to assigned tasks
LEADERSHIP Degree to which executive is abele to gain willing cooperation of his subordinates to achieve the best possible results
PART D
INTEGRITY Degree of honesty and uprightness in giving facts & in use of the position & the company resources
AMENABILITY TO DISCIPLINE Adherence to the company’s poli cies & rules
COMMITMENT Degree to which the executive is committed to the company’s objectives, policies, programmes & values
PERSEVERANCE Steadfastness with which the executive pursues the chosen course of action
GRADE E 1 – E IV
PART A Self Appraisal
PART B Performance Appraisal
PART C Potential Appraisal
PART D General traits and general comments
PART E Developmental plan
PART F Summary of Appraisal
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Grade of appraiser Min grade of reporting
officer
Min grade of reviewing
officer
E I
E II
E III
E IV
E III
E IV
E V
E VII
E IV
E V
E VI
E VII
Each reporting and reviewing officer should ideally maintain the following distribution
for the group of persons being reported upon:
EXCEPTIONAL 5%
EXCELLENT 20%
VERY GOOD 25%
GOOD 25%
ACCEPTABLE 20%
UNACCEPTABLE 5%
In case performance (PART B) is “unacceptable” (i.e. 1-2 marks), on any factor, the
reporting and reviewing officer should hold a mid year counseling session in October
with the appraisee and keep the appraisee informed of the need to improve. The outcome
of the mid-year counseling, in addition to end of year counseling, should be recorded in
3.0 of PART E.
Part B and E should be filled in after conducting a performance appraisal interview with
the appraisee. PART C and D should be treated as “confidential reports”.
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PARAMETERS FOR E I – E IV AND EV
Performance Appraisal:
Accomplishment of tasks/targets
Quality of work
Implementation of torque
Utilization of resources
Development of subordinates
Maintenance of discipline
Potential Appraisal:
Professional competence
Problem solving ability
Creativity and innovation
Initiative and drive
Inter-personal skills and leadership
Holistic perception
Planning ability
General Traits:
Integrity
Amenability to discipline
Commitment
Perseverance
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PERFORMANCE MANAGEMENT SYSTEM
Performance management is vital for any organization to be a global competitor and
achieve business excellence.
PMS enables clarifying roles, fixing responsibilities, aligning individual’s activities with
organizational objectives and builds value based performance culture in the organization.
PMS also identifies developmental needs of the individuals and creates a database for
rewarding and motivating its executives.
PMS is being introduced in BEL to start with, for senior executives i.e. DGMs and above
up to director level (including direct reportees to GMs).
Objectives Of PMS
• Clarify roles and fix responsibility
• Align individual activities with group goals and organizational objectives
• Optimal use of employee competencies
• Focused work using competencies resulting in reduction of waste and overheads
• Identify developmental needs and build competencies of individuals/dyads/groups
and prepare for higher levels of jobs
• Create database for rewards, motivation, and promotions
• Build value based performance culture
Coverage
Initially all executives in E-VI and above up to directors-level are covered. In addition all
the direct reportees to unit/SBU heads will be covered irrespective of the levels. This will
be extended to other levels in due course.
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PERFORMANCE APPRAISAL FORMAT
Part I – performance The “performance” is divided into 4 parts:
1. Performance plan and mid year review
2. Year-end performance review
3. Developmental need assessment
4. Performance review sheet
Performance plan: Performance planning is the first and the most important part of PMS and is done at the
beginning of the year (April). Every individual has to first define his role, identify
stakeholders and his or her needs and expectations. The needs and expectations are then
prioritized and about 7 to 8 key result areas (KRA) / key performance areas (KPA) are
formulated jointly with the help of superior. The relative weightages out of 100 have to
be jointly fixed between appraisee and appraiser. Having formulated KPAS they have to
be broken into various workable and measurable activities. These activities vary
depending on the level of the executive. While middle level executive of current jobs,
senior level executives focus mainly on visioning, strategy planning and preparing road
maps for next few years besides executing / facilitating higher level jobs. For each of
such activity the performance measures/indicators have to be formulated jointly with the
help of subordinates, colleagues and superiors.
The targets against each activity should be SMART
(Specific, measurable, agreed/ambitious/achievable, realistic and time bound)
The performance plan after finalizing jointly is signed by both appraisee and appraiser.
The original format is kept with appraiser; the appraiser keeps a copy for his reference
and regular monitoring.
Mid year review: The mid year review is done in October every year in a structured performance review
discussion (PRD) meeting held between appraisee and appraiser. At the end of the PRD
meeting the appraisee formally lists down in the column to what extent he could achieve
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his half yearly targets and the reasons for the variances if any. During PRD he will
discuss with the appraiser if he need to amend the year-end KPAs, targets or marks.
Appraiser in the 5th level will give his concurrence or otherwise and firm up KPAs.
Targets and wieghtage marks jointly for the year-end and the firmed up KPAs for year-
end are entered in the 1st three columns of page 3.
Performance Review Discussion (PRD): The PRD as a part of midyear or year-end review is another most important activity in
PMS and therefore this process needs to be understood clearly and followed properly.
PRD aims at making appraiser and appraisee understand each other better by formal
communication and analysis of performance once in 6 months. PRD meetings are fixed
between appraiser and appraisee well in advance. Sufficient time of about 2 to 3 hours is
allowed for PRD and is conducted in a quit and congenial environment ensuring no
interruptions. During PRD the appraiser should be friendly and supportive, with positive
approach without getting personal and be prepared to give and take feedback. It should be
a two-way dialogue. Precise tasks and targets are set and reviewed jointly. Performance
dairy is referred often to give specific feedbacks on performance. The review should be
for entire period and not based on recent incidents.
PRD if done properly can be used as problem solving tools and helps mutual
understanding, mutual learning, trust and openness and fosters team spirit. It helps in
improving the effectiveness and productivity of subordinates as well as boss and the
department as a whole.
During PRD, the appraiser also gives feedback on performance, competencies, value and
potential factors and identifies training/developmental needs of the subordinate.
Before PRD is conducted one should monitor and analyze the performance. Without
proper monitoring and analysis system, the PRD may lead to negative results. Therefore
it is necessary to understand how performance has to be monitored and analyzed.
Performance monitoring: Having set the KPA and performance measures and indicators (targets) every individual
has to continuously monitor one’s own performance vis-à-vis target set between him and
his superior and see that set targets are achieved well within the time schedule. Similarly
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one has to monitor the performance of the subordinates continuously; give mid course
feed backs and make necessary corrections. Best way is to maintain the performance
diary of the subordinates and record significant achievements and short falls if any from
time to time. The performance diary is often referred in PRD and is considered a very
effective tool for reviewing the performance of the subordinates during PRD.
Performance analysis: Both appraisee and appraiser must do performance analysis first independently and later
together during PRD.
The actual performance is analysed vis-a–vis KPA/tasks/targets set earlier. During
performance analysis one has to find answers for various questions – whether
performance fall short or exceeds and by how much; is it exceptional, very good or more
than what is possible/expected or same as expected or less than expected. What factors
related appraiser (competence, motivations, ability, hard work) helped him to
perform/fail and what factors of boss or subordinate, or policies/organizational support
helped him to perform/fail; which of these factors could have been influenced by
appraisee/Appraiser and how. One should not start rating based on simple fact that
subordinates has either met or not met the targets, without finding answers for above
questions.
Performance analyses is a time consuming process and if done properly can help to meet
a variety of objectives including performance rating in more objective PRD.
Year-end performance review:
The year end performance review of previous year and formulating KPAs, targets etc.,
for next year should be done together in a well structured PRD meeting between
appraiser in April every year. The process to be followed for the performance of
appraisee vis-à-vis targets at against each KPA. The average of the total marks awarded
by the appraiser and reviewing officer is worked out and the total average marks thus
obtained out of 100 prorated to 50%. Thus the wieghtage given for the performance vis-
à-vis targets during the year is 50% of total marks. The marks awarded confidentially by
the appraiser and reviewing officer after PRD meetings is over.
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Developmental need assessment: Developing performance and identifying developmental needs is an important activity in
PMS. This can be done at the year beginning, or mid year review or year-end review and
recorded.
Performance review: The appraiser to record comments on performance and summary of PRD meetings in the
middle and end/beginning of the year uses this. Besides feedback given with reference to
competencies, values and potentials are also recorded here. Any organizational support
required to perform may also be recorded. The remarks of midyear review could be
referred at improvements made by individuals during 6 months on the feed back points.
PART I – COMPETENCIES This part deals with assessment of 9 functional/technical and managerial competencies
required foe successful performance on the job. Brief description of what the expected
under each competency is given in the format itself. The appraiser is assessed and rated
on a 5-point scale against each competency at the end of the year by the appraiser and
reviewing officer confidentially.
PART II – VALUES This part deals with assessment of 10 crore values and ethical behaviour values, which
are required to be demonstrated in day-to-day activities by the appraisee. Brief
description of what is expected under each value is given in the format itself. The
appraisee is assessed and rated on a 5-point scale against each value at the end of the year
by appraiser and reviewing officer confidentially.
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PART III – POTENTIAL APPRAISAL
This part deals with 5 attributes, which represent the leadership and managerial qualities
required at senior level and to occupy higher positions. Brief explanation of what is
expected against each attribute is given in the format itself. He appraisee is assessed and
rated on 5 point scale against confidentially by appraiser and reviewing officer.
POINTS
EXCEPTIONAL 4.5 - 5
EXCELLENT 4 - 4.5
VERY GOOD 3.5 - 4
GOOD 3 - 3.5
ACCEPTABLE 2.5 - 3
UNACCEPTABLE <2.5
Normalization Of Ratings The ratings given by appraising officer may not sometime coincide with the views of
reviewing officer. The reasons for variation may be many. In such situations where
reviewing officer feels that the rating need certain modifications he will discuss with
appraising officer and arrive at consensus. However, the reviewing officer should take
necessary care to see that the authority of appraising officer is not abrogated and similarly
the appraising officer should be able to see the rationale behind reviewing officers’ view
and both at consensus.
Normally the distribution of performance in any department/division would be about
20% in exceptional or excellent category and about 20% are average and below average
performers. Rest 60% would be very good/good category. The appraisers and reviewers
should make sure that ratings across their department follow normal standard BELL
CURVE.
Due to lack of proper understanding of the guidelines variation do occur between one
appraising officers to another for the same and similar level of the performance. Such
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variations are taken care by reviewing officer and appraising officer by mutual
discussion. It is also not uncommon that appraising officers and reviewing officers are
together are either too lenient or too strict resulting in large variation between
departments and divisions. All out efforts should be made by unit heads to reduce if not
totally eliminate such variation since the ratings are sacrosanct for promotions and
rewards. In order to reduce such variation the personnel department would make study of
previous year’s ratings of various appraisers in each department/divisions and make a
statistical analysis for each department/divisions versus company wide/ unit wide
statistics and give feedback to departmental/divisional heads in march every year. In case
of senior executives, corporate and personnel may make such analysis unit wise as
against company wide statistics and give feedback to unit heads in the month of March
every year. This will enable unit heads/divisional/unit heads to take necessary steps when
they finalize the current years KPAs, measures and ratings. All out efforts should be
made by all concerned to see that ratings are normalized to see that there is no large
variations between department, division-to-division and unit-to-unit.
However, it is not uncommon though in rare situation certain departments have
predominantly high performers or very low performers. One should not lose sight of such
exception in trying to statically normalize and deny due to ratings to genuinely
performing officers.
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REVIEW OF LITERATURE
Purpose of the review of literature
The purpose of literature review is to identify the problem statement, understand the
secondary data that has been gathered in the field of study and to make new findings on
the problem statement.
Methodology of the review of literature
Methodology of the literature review different facets of information sources concerning
to motivation factors for employee satisfaction. Different sources used in order to collect
the information or data are:
• Magazines and journals
• The internet
• Publications
• Articles
The articles have been analyzed and used in the research for better understanding of the
Topic.
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Title: How to make performance reviews more useful Author: Bruce L. Katcher, Ph.D. President of The Discovery Group.
Website referred: www.discoverysurveys.com
According to this article More than half of all employees believe that performance
reviews have not been useful in helping them to improve their job performance.
Employees have become cynical about the performance management process.
The management can
• Reinforce Positive Behaviors: "Reinforcing positive behavior will
increase the probability of that behavior."
• Uncouple Employee Development and Compensation Discussions:
Salary reviews should occur separately on an annual basis.
• Make Certain that the Performance Standards are Clear and
Achievable: Performance measures must be made crystal clear. Use
quantitative rather than qualitative measures whenever possible.
• Make Sure the Performance Measures are Relevant: Each performance
measure should be relevant to each particular employee.
• Provide Team and Customer Feedback: Performance feedback from
team members and customers is often much more useful than supervisory
feedback.
In summary, most employees find their performance reviews useless, but there are many
steps that management can take to make them much more meaningful.
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Title: How to Improve the Effectiveness of Performance Management and
Appraisal by Overcoming the Root Cause of the Problem Author: Julie Freeman
Website referred: www.hrmguide.com
This article explores why existing formal and informal approaches to Employee
Performance Management and Appraisal (EPMA) tend to work well enough in theory,
but fail to meet expectations in practice.
Organizations encourage, even urge, their managers to talk informally with their
employees about their performance on an ongoing basis. However, this rarely happens.
Moreover, even when managers do talk to their employees, the communication often falls
short of having the desired effect on their morale, motivation, and productivity. Despite
our best efforts to date, managers still report that they are uncomfortable giving feedback
and discussing performance with their employees, especially if poor performance is a
factor. It identifies the root cause of the problems associated with giving and discussing.
Performance related information in formal and informal settings and presents a solution
to overcome them. Various suggestions for how the solution can be applied to meet
differing individual or corporate needs are also outlined.
Only about 10 per cent of the managerial population has a natural ability to discuss
performance with their employees in an effective way. According to the author, the root
cause of the problem does not appear to lie in a lack of ability within the managerial
population to honestly and accurately assess and evaluate an employee’s performance
and potential. Actually most managers can do this very well. The root cause of the
problem is that, to a greater or lesser extent, the vast majority of managers cannot
actually translate what they know about that performance into useful information and
then communicate it to the employee in an effective and practical way regardless of the
method they are asked to use. The proposed solution for such a problem according to the
author does not lie in trying to improve the technical elements of any given approach.
The PAF (Performance Analysis and Feedback) technique discussed in this article
provides a breakthrough in helping managers to deal with difficult situations like this. It
works because it shows managers a simple and logical way that they can analyze and
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validate both the positive and negative aspects of their subjective fuzzy mental
impressions.
PAF is particularly effective for communicating "negative" information (the "hard stuff")
without the kind of stress and anxiety that managers ordinarily expect to experience in
such situations, and in a way that has the desired effect on employee behaviour, outputs,
motivation and morale. However, it is equally effective for conveying positive
conclusions and opinions because it does so in a way that has the effect of building the
employee's self -esteem, confidence, and desire to do well, while negative conclusions
can be conveyed in a way that gets the hoped-for results.
This technique works because Firstly, regardless of whether the feedback is positive or
negative, the PAF Technique forces managers to analyze their conclusions in a very
specific, positive, future-focused way. Specificity is a golden rule of feedback of course,
but this approach goes ones step further because conclusions, once formed, are rarely
examined and communicated in this way.
Secondly, for negative feedback, the way that a problem is brought up and presented
makes it easier on the manager to say and easier on employees to hear, understand, and
accept, which decreases the potential for conflict and hurt feelings. Thirdly, the
specificity of the desired performance combined with the discussion about solution
options dramatically increases the probability that the process will achieve the hoped-for
results.
In summary, the big problem of improving performance-related communication between
managers and employees can be solved by simple solution. All it takes is the will to
implement it.
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Title: How to link pay and job performance Author: Bruce L. Katcher, Ph.D. President of The Discovery Group
Website Referred: www.discoverysurveys.com
7 out of 10 employees say there is no relationship between their job performance and
their pay. Employees want to feel that their good work is appreciated and appropriately
compensated. Problems discovered from this article are:
• Employees believe that their performance is above average they therefore, believe
that he or she should be paid above average.
• Employees feel that they are not adequately paid compared to those performing
similar work in other organizations.
• Employees often perceive that there are poor performers in their organization who
are earning as much if not more than they earn.
• Supervisors don't have the know-how or guts to differentiate between poor,
average, and above average performers.
• Tying pay to performance is very important to employees. This is particularly true
in unionized organizations where the union has negotiated contracts that require
their employer to tie pay increases to years of service rather than performance.
The management can link pay to performance in the following manner:
• Make the organizations Pay-for-Performance Philosophy Clear to Employees.
• Use Bonuses Rather than Pay Increases.
• Rate Supervisors on how well they Rate their Subordinates.
• Train Supervisors how to talk about Pay.
• Use Objective Performance Measures.
• Weed out Ineffective Performers.
In summary, employees typically want to be paid commensurate with the quality of their
job performance. Doing so requires a carefully constructed pay program, a commitment
from supervisors, and well-orchestrated communications to employees about their pay.
Effectiveness of PAS Bharat Electronics
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Title: Using a Balanced Scorecard Approach to Measure
Performance Authors: Robert S. Kaplan and David P. Norton
Website referred: www.work911.com
Traditionally, organizational performance is measured by focusing on internal or process
performance, looking at factors such as the number of fulltime equivalents (FTE) allotted,
the number of programs controlled by the agency, or the size of the budget for the fiscal
year. In contrast, private sector businesses usually focus on the financial measures of
their bottom line: return on- investment, market share, and earnings-per-share. Alone,
neither of these approaches provides the full perspective of an organization's performance
that a manager needs to manage effectively. But by balancing internal and process
measures with results and financial measures, managers will have a more complete
picture and will know where to make improvements.
Summary of Review of Literature:
The articles reviewed tell us it is difficult to introduce a new system of performance
appraisal or modify the existing appraisal system. There always exist some problem
regarding the performance evaluation. The study therefore tries to suggest ways in which
the changes can be incorporated in a sequential and an ordered manner. Performance can
also be linked to the monetary benefits associated with the job. The recommendation part
of the research guides as to how the management can make the performance appraisal
system more effective. One of the ways to measure performance of an employee with
respect to organizational strategies is by designing Balance Scorecard. A balance
scorecard can be constructed with a specific purpose of linking any aspect of the
organization with the overall organizational goals.
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 52
RESEARCH METHODOLOGY
Problem Statement: A critical study of the effectiveness of the performance appraisal system and suggest
ways for improvement.
Objectives of the Research: The research survey is proposed to be undertaken with the following objectives:
• To study the present Performance appraisal system at BEL.
• To ascertain the views/opinions of the Raters and Ratees working with the
company about Performance Appraisal System, existing in the company.
• To suggest appropriate modifications in the existing Performance Appraisal
System.
Type of Research: Our research investigation is analytical. The respondents have been contacted through
questionnaires blended with focus group interviews and responses with regard to the
current performance appraisal system of the company have been analyzed.
Sampling Technique: Though the study is confined to only one unit situated in Bangalore, a complete survey of
all the employees is not possible, because of their busy schedule. The respondents
belonging to the Executive level have been chosen.
Sample size: A sample size of 40 employees has been selected on the basis of Stratified Sampling
method.
Effectiveness of PAS Bharat Electronics
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Instrumentation techniques:
• Structured Questionnaire
• Focus Group Interviews
Actual collection of data: Data is the fact of an event. Data is the base for every research work. The data is mainly
classified into two groups.
Primary data: Thrust has been on collection of primary data. Structured
questionnaire has been used and discussed personally with the respondents to get
their responses.
Secondary data: Books, journals, websites etc., have been consulted for obtaining
related information, and also for crosschecking of primary data.
Interpretation and analysis:
• The data collected from the questionnaire have been synthesized in the form of
tables and tabulated data has been analyzed.
• Percentage is calculated for each and every table.
• Analysis and interpretation is done based on primary data.
• Inference is drawn from the analysis of primary data, to attain the objective of the
study.
• The primary data is diagrammatically represented.
Limitations of the research
• Study is limited to the Bangalore unit of BEL only.
• The sample size is limited to only 40 employees
• Analysis of primary data is done on the assumption that the answers given by the
respondents are true and correct.
• Time and Resource constraints.
Effectiveness of PAS Bharat Electronics
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PROFILE OF RESPONDENTS
SAMPLE SIZE 40
No %
No. of questionnaires distributed 40 100
No of respondents 40 100
No %
No. of respondents for questionnaire-1(ratee) 40 100
No of respondents for questionnaire-2 (rater) 30 75
CLASSIFICATION OF RESPONDENTS BASED ON
SBUs No %
Naval systems 18 45.0
Military communication and electronic warfare 15 37.5
Components 4 10.0
Telecommunication and broadcasting 3 7.5
TOTAL 40 100
CLASSIFICATION OF RESPONDENTS BASED ON
NUMBER OF YEARS OF SERVICE RENDERED No %
01 – 10 13 32.5
11 – 20 15 37.5
21 – 30 06 15.0
> 30 06 15.0
TOTAL 40 100
Effectiveness of PAS Bharat Electronics
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CLASSIFICATION OF RESPONDENTS BASED ON
GRADE No %
E I 3 7.5
E II 8 20.0
EIII 7 17.5
E IV 7 17.5
E V 11 27.5
E VI 4 10.0
TOTAL 40 100
CLASSIFICATION OF RESPONDENTS BASED ON
AGE No %
25 – 35 11 27.5
36 – 45 16 40.0
46 – 55 12 30.0
> 55 1 2.5
TOTAL 40 100
CLASSIFICATION OF RESPONDENTS BASED ON
NUMBER OF YEARS OF SERVICE RENDERED No %
01 – 10 13 32.5
11 – 20 15 37.5
21 – 30 06 15.0
> 30 06 15.0
TOTAL 40 100
Effectiveness of PAS Bharat Electronics
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Questionnaire 1(To The Ratees) Awareness About The Performance Appraisal System
Followed In BEL Q1.Are you aware of the Performance Appraisal System followed at BEL?
TABLE 1: Table showing the response towards the Awareness of the Performance
Appraisal System followed IN BEL
Awareness about PAS No %
Yes 40 100
No 0 0
TOTAL 40 100
CHART 1:
AWARENESS ABOUT PAS FOLLOWED IN BEL
aware100%
unaware0%
Source: field investigation
Observation: The above table shows that 100% of the respondents are aware of the
performance appraisal system followed.
Inference: This shows that the company follows a strict policy about the appraisal.
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 57
Level Of Satisfaction Towards The Performance Appraisal System Followed In BEL
Q2. How satisfied are you with the present Performance Appraisal system?
TABLE 2: Table showing the level of satisfaction towards the performance appraisal system followed in BEL
LEVEL OF SATISFACTION No %
Fully satisfied 4 10
Partially satisfied 32 80
Not satisfied at all 4 10
TOTAL 40 100
CHART 2:
LEVEL OF SATISFACTION
fully satisfied10%
partially satisfied80%
not at all satisfied10%
Source: field investigation
Observation: The above table shows that 80% of the executives are partially satisfied
with the PAS followed, only 10% of the executives are fully satisfied where as another
10% of the executives responded that they are not at all satisfied with the PAS followed.
Inference: This shows that the present performance appraisal system is satisfactory to
some extent. Further improvement in the system can be made in order to attain full
satisfaction of the employees/executives of the company.
Effectiveness of PAS Bharat Electronics
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Response Towards Performance Standards
Q3. The performance standards set are clear and achievable.
TABLE 3: Table showing response towards the performance standards if they are clear and achievable
PERFORMANCE STANDARDS No %
Strongly agree 0 0
Agree 24 60
Disagree 12 30
Strongly disagree 4 10
TOTAL 40 100.00
CHART 3:
0.00
10.00
20.00
30.00
40.00
50.00
60.00
PERFORMANCE STANDARDS SET ARE CLEAR & ACHIEVABLE
strongly agree disagreeagree
Source: field investigation
Observation: The above table shows that the greater part (60%) agrees that the
performance standards set are clear and achievable. But 40% of the respondents disagree.
Inference: Executives should participate with their supervisors in the creation of
performance goals and development plans which would lead to clear understanding of the
key performance areas. It can be inferred from above that the performance standards are
clear and achievable.
Strongly disagree
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 59
Knowledge About Reporting And Reviewing Officers
Q4. Do you know who are your Reporting officer and Reviewing officers?
TABLE 4 :Table showing response towards knowledge about reporting and reviewing officers
KNOWLEDGE ABOUT REPORTING AND REVIEWING
OFFICERS No %
Yes 38 95
No 2 5
TOTAL 40 100
CHART 4:
KNOWLEDGE ABOUT REPORTING & REVIEWING OFFICERS
no5%
yes95%
Source: field investigation
Observation: The above pie chart depicts that 95% of the respondents are aware of who
their reporting and reviewing officers are. Surprisingly there are respondents (2%) who
agreed otherwise.
Inference: From the above table it can be inferred that the appraisees are aware of their
Reporting and reviewing officers. Hence it can be said that executives have well thought-
out appraisal as a serious issue.
Effectiveness of PAS Bharat Electronics
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Assessment Of Training Needs For Appraisers
Q5. Is it essential to provide training to the appraiser to develop his skills to carry appraisal programme?
TABLE 5: Table showing the response towards training needs for appraisers
TRAINING NEEDS FOR APPRAISERS No %
Yes, it is essential 25 62.5
Sometimes essential 15 37.5
No, it is not essential 0 0
TOTAL 40 100.0
CHART 5:
TRAINING NEEDS FOR APPRAISERS
62%
38%
0%
yes, it is essentialsometimes essentialno, it is not essential
Source: field investigation
Observation: The above table shows that majority of the respondents i.e. 62% favored
training for the appraisers to carry appraisal programme, 38% respondents felt it is
sometimes essential, none answered negatively.
Inference: The above table shows that all the respondents experience the necessity of
training for the appraisers. Training appraisers would escort to a much accurate appraisal.
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 61
Response Towards If Counseled To Improve Performance
Q6. Have you been counseled at any time to improve your performance? TABLE 6: Table showing response towards if counseled to improve performance
IF COUNSELED TO IMPROVE PERFORMANCE No %
Yes 4 10.0
Sometimes 13 32.5
No 23 57.5
TOTAL 40 100.0
Chart 6:
IF COUNSELED TO IMPROVE PERFORMANCE
10%
33%57%
yessometimesno
Source: field investigation
Observation: The above chart depicts that only 10% of the respondents agreed that they
have been counseled, where as the major part – 57% of the respondents says that they
have never been counseled, 10% responded saying they were counseled irregularly.
Inference: This shows that the most of the times executives are not counseled after
appraisal programme, hence it should be seen that executives are counseled time to time
in order to pick up their performance.
Effectiveness of PAS Bharat Electronics
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Response Towards BEL Spending Time And Attention On
Performance Appraisal Process Q7. The management at BEL spends considerable amount of time and attention for the
Performance Appraisal process.
TABLE 7: Table showing the response towards BEL spending of considerable amount of time and attention for the Performance appraisal process
TIME & ATTENTION ON PERFORMANCE APPRAISAL No %
Strongly agree 1 2.5
Agree 19 47.5
Disagree 18 45.0
Strongly disagree 2 5.0
TOTAL 40 100.00
CHART 7:
BEL SPENDS CONSIDERABLE TIME & ATTENTION OM PERFORMANCE APPRAISAL
3%
47%45%
5%
strongly agreeagreedisagreestrongly disagree
Source: field investigation
Observation: In response to the question company spending of considerable time and
attention for the performance appraisal system, 50% of the respondents answered
positively, whereas another 50% of the respondents flatly disagreed to the concept.
Effectiveness of PAS Bharat Electronics
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Inference: The management should take effectual steps so that appraisees sense that they
have been fairly judged.
Response Towards Importance Of Self Appraisal
Q8. In the Performance Appraisal system at BEL the “ Self Appraisal” forms a part. Do you think it is relevant?
TABLE 8: Table showing the response towards the Validity of Self-Appraisal
IMPORTANCE OF SELF APPRAISAL No %
Yes 29 72.5
No 5 12.5
Not sure 6 15.0
TOTAL 40 100.00
CHART 8:
IMPORTANCE OF SELF APPRAISAL
0.0010.0020.0030.0040.0050.0060.0070.0080.00
yes no not sure
%
Source: field investigation
Observation: The responses analyzed show that 72% of the executives actually felt that
Self-Appraisal is important. This aids in the free flow of information from the executives
regarding the Job-Performance to the Reporting and reviewing officers. 5% of the
Respondents felt Self-Appraisal is not necessary.
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 64
Inference: This shows that the executives are satisfied with the Self-Appraisal process
being followed in the company.
Response Towards Awareness Of Different Traits
Q9. Are you aware of the different traits/attributes according to which you are
rated?
TABLE 9: Table showing the response towards the Knowledge of Traits/Attributes
KNOWLEDGE OF TRAITS / ATTRIBUTES No %
Yes, completely 22 55.0
No 7 17.5
Not very sure 11 27.5
TOTAL 40 100.0
CHART 9:
KNOW LEDGE OF TRAITS / ATTRIBUTES
0.00
10.00
20.00
30.00
40.00
50.00
60.00
yes no not very sure
%
Source: field investigation
Observation: This issue analyzes the awareness about the Traits/Attributes contained in
the Appraisal system. 55% of the respondents say they are completely aware of the traits
based on which they are appraised. But 18% of the respondents answered that they are
not aware of all the different traits where as 28% said they are not very sure.
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 65
Inference: It can be inferred that the management has been effective in making an
appraisee aware about the traits contained in the appraisal formats only to some extent. If
appraisees are not aware of the traits then there won’t be a clear -cut thought on which
they can develop their performance.
Response Towards Sufficiency Of Traits
Q10. The traits/attributes so contained in the Performance appraisal system is
sufficient.
TABLE 10: Table showing Response towards Sufficiency of Traits
SUFFICIENCY OF TRAITS No %
Agree 30 75
Disagree 10 25
TOTAL 40 100
CHART 10:
SIFFICIENCY OF TRAITS
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00
agree
disagree
%
Source: field investigation
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 66
Observation: Out of the 40 respondents 75% felt that the traits are sufficient. Of the
remaining 25% respondents felt the need of more explicit traits.
Inference: Since 75% of the respondents have answered in favour show that the traits
contained in the formats are Sufficient. It can also be inferred that the appraisee is rated
on all possible attributes.
Response Towards Relevance Of Rating By Reviewing And Reporting Officers
Q11. Is it relevant of the Performance Appraisal system at BEL in which Reporting and
Reviewing officers rate you?
TABLE 11: Table showing the response towards the relevance of rating being done by Reviewing and Reporting officers
RELEVANCE OF RATING No %
Yes 27 67.5
No 6 15.0
Not sure 7 17.5
TOTAL 40 100.0
CHART 11:
yes no
not sure
%0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
RELEVANCE OF RATING
%
Source: field investigation
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 67
Observation: In the appraisal system followed in BEL, Reviewing and Reporting officers
rate the Performance of an appraiser. This system is valid according to the response of
67% of the respondents. 15% of the employees agreed otherwise.
Inference: It can be concluded that the present system of performance appraisal is
effective in bringing out the performance feed back by the reviewing and reporting
officers. The executives also have no issues about the rating by 2 officers.
Sufficiency Of Help And Guidance Provided By Reporting/Reviewing Officers
Q12. Help and guidance provided to you by your Reporting/Reviewing officers is: TABLE 12: Table showing the response towards the sufficiency of help and guidance provided by Reporting/Reviewing officers.
SUFFICIENCY OF HELP & GUIDANCE PROVIDED No %
Highly sufficient 2 5
Sufficient 22 55
Insufficient 14 35
Highly Insufficient 2 5
TOTAL 40 100
CHART 12:
SUFFICIENCY OF HELP & GUIDANCE PROVIDED
0.0010.0020.0030.0040.0050.0060.00
highly sufficient sufficient insufficient highly insufficient
%
Source: field investigation
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 68
Observation: Of the respondents 55% of the executives felt that the help and guidance
provided is sufficient. Only 5% strongly agreed that the help and guidance is highly
sufficient. Few of the respondents’ also thought of help being insufficient. 35% of the
executives said that the guidance is insufficient. A very few (5%) felt that the help and
guidance is highly insufficient.
Inference: This indicates that the management spends considerable time on providing
help and guidance to the executives.
Response Towards Discussion About Ratings With Reporting Officers
Q13. The discussion of your Performance with that of the Reporting/Reviewing
officer provides you with a platform, whereby you can discuss your ratings without
fear/inhibitions:
TABLE 13: Table showing the response towards the discussion of employees’ performance with reporting/reviewing officer without any fear/inhibitions.
DISCUSSION ABOUT PERFORMANCE No %
Strongly agree 2 5
Agree 18 45
Disagree 18 45
Strongly disagree 2 5
TOTAL 40 100
CHART 13:
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 69
strongly agree
agree
disagree
strongly disagree%
0.00
10.00
20.00
30.00
40.00
50.00
DISCUSSION ABOUT PERFORMANCE
Source: field investigation
Observation: This question tries to analyze how free are the executives to express their
explanation for their performance on the job. 45% of the respondents agreed to the fact
that the discussion with the reporting/reviewing officer provides with a platform to
discuss the executives ratings. Only 5% strongly agreed that the platform is effective
enough. As much as 45% of the executives disagreed that the discussion with their ratees
is a good platform to discuss the performance. Only 5% of the respondents strongly
disagreed implying the executives could not discuss their rating in a fair manner.
Inference: On the whole 50% of the respondents are on the positive side where as another
50% are on the negative side. Hence the management should take steps in order to shrink
the gap between the raters and the ratees.
Effectiveness of PAS Bharat Electronics
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Response Towards The Development Of New Skills
Q14. The development of new or better managerial qualities and skills through the
training programme, identified through the Performance Appraisal is:
TABLE 14: Table showing the response towards the development of new/better managerial qualities and skills through the training program identified through the performance appraisal.
DEVELOPMENT OF NEW SKILLS No %
Significantly important 8 20
Important 28 70
Not at all important 4 10
TOTAL 40 100
CHART 14:
Effectiveness of PAS Bharat Electronics
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DEVELOPMENT OF NEW SKILLS
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
sigificantlyimportant
important not at allimportant
%
Source: field investigation
Observation: This particular the question tries to get the feed back from executives about
the significance of training programs. Of the 40 respondents, 70% felt the development of
new or better managerial skill through the training programme identified through the
performance appraisal is important. 20% felt that it is significantly important. A mere
10% said that the development is not at all important.
Inference: This shows that the executives show responsibility towards the management
by participating in the training programs.
Response Towards The Need For Performance Appraisal For Executives
Q15. The need for Performance Appraisals for officers like you is: TABLE 15: Table showing the response towards the need for a performance appraisal for the current designation held by the executives.
NEED FOR PERFORMANCE APPRAISAL No %
Very much necessary 15 37.5
Necessary 22 55.0
Not Necessary 3 7.5
TOTAL 40 100
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 72
CHART 15:
NEED FOR PERFORMANCE APPRAISAL
38%
54%
8%
very much necessary necessary not necessary
Source: field investigation
Observation: 55% of the respondents agreed that the performance appraisal is very much
necessary for the Job-designation they are holding. Whereas 38% of the respondents
strongly agreed that it is very much necessary to have a performance appraisal system. Of
the 40 respondents only 3 of them felt that the performance appraisal is not necessary.
Inference: The fact that most of the respondents answering in the favour of the appraisal
system justifies the need for the appraisal for the executives.
Response Towards The Existence Of Communication Gap
Q16. There exist performance related communication gap between the Rater and
Ratee.
TABLE 16: Response towards the existence of performance related communication gap b/w rater and ratee
EXISTANCE OF COMMUNICATION GAP No %
Strongly agree 7 17.5
Agree 26 65.0
Disagree 7 17.5
Strongly disagree 0 0.0
TOTAL 40 100
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 73
CHART 16:
EXISTANCE OF COMMUNICATION GAP
17%
66%
17%0%
strongly agreeagreedisagreestrongly disagree
Source: field investigation
Observation: From the above numeral it is apparent that there exist performance rated
communication gap b/w rater and ratee. 65% of the respondents answered in favour, 17%
strongly agree that the gap exist, again 17% of the respondents believe that there is no
such gap.
Inference: It can be concluded that many executives do face the difficulty of
communicating with their appraisers.
Response Towards Review Of Present Performance System Q17. Do you think the present Performance Appraisal system should be reviewed?
TABLE 17: Table showing response towards review of present performance system
REVIEW OF PAS No %
Yes 27 67.5
No 8 20.0
Can’t say 5 12.5
TOTAL 40 100.0
CHART 17:
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 74
REVIWAL OF PAS
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
yes no cant say
%
Source: field investigation
Observation: 68% of the respondents sense that the present appraisal system should be
renewed, where as 20% of the respondents are satisfied with the present PAS, 12% didn’t
give any view.
Inference: It can be said that many executives are not contented with the present PAS and
consequently experience the need for the restoration of the system.
Response Towards The Degree Of Mutual Understanding, Possibility Of An Unbiased Assessment, Discovering Potential,
Fulfilling Potentials
1-Very Low 2-Quite Low 3-Quite High 4-Very High TABLE 18:
1 2 3 4 TOTAL
Degree of mutual understanding 2 5 28 5 40
Possibility of unbiased assessment 5 10 23 2 40
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 75
Discovering potential of higher responsibility 9 12 16 3 40
Fulfilling potentials discovered 4 20 14 2 40
TOTAL 20 47 81 12
% 12.5 29.4 50.6 7.5 100.0
CHART 18:
0
5
10
15
20
25
30
1 2 3 4degree of Mutual Understanding Possibility of Unbiased assessment
discovering your potential for higher responsibility fulfilling the Potentials discovered
Source: field investigation
(1) Observation: The degree of mutual understanding is the mutual respect the
employee and the reporting/reviewing officers’ share.
Of the responses it has to be noted that very few respondents answered very low.
The executives have a very high mutual understanding according to only 5 out of
40 (12%)respondents. 28 of 40 i.e. 70% of the respondents felt that the
understanding is Quite high. 5% of the respondents felt that the mutual
understanding is low.
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 76
Inference: It can be inferred that the degree of mutual understanding in work
relationships with the executive’s superior is quite high. Overall 83% of the responden ts
agree that the degree of mutual understanding is High. This implies that “Rater Bias” is
not prevalent in the company.
(2) Observation: Possibility of an unbiased assessment motivates an employee to
perform better on the job. In the survey only 5% of the respondents felt that the
possibility of an unbiased assessment is very high. 58% of the executives agreed
that the possibility of the assessment being unbiased is quit high. Few respondents
felt that the assessment is not fair. 25% of the respondents felt that the assessment
is quite low in terms of bias. 13% felt with respect to the possibility of unbiased
assessment is very low.
Inference: It can be inferred that the possibility of an unbiased assessment of the
performance is quite high.
(3) Observation: As seen from the graph, majority of the respondents agreed to the
fact that the extent of discovering potential for higher job responsibility as high.
40% of the respondents agree that the possibility of the management discovering
the potential for improvement is quite high. Again 30% of the respondents felt
that the response is quite low from the management to discover the potential.
8% of the respondents agreed that the response is very high. Of the respondents a
few thought that the management is showing very low interest in discovering the
potential. 22% of the respondents felt the possibility of the management
discovering the potential for improvement is very low.
Inference: It can be inferred that the extent of effort from the management in discovering
executives potential for higher responsibility through Performance Appraisal is quite low.
53% of the overall response shows inclination towards low. Thus the management is
should take effective steps in discovering the employees’ potential for imp rovement.
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 77
(4) Observation: Evidently the responses show a positive inclination towards quite
low. 35% of the respondents were convinced that the management spends
considerable amount of time in fulfilling the potential identified. 5% agreed that
the response is very high. But 50% of the respondents felt that the response is
quite low and 25% felt that it was indeed very low.
Inference: This shows that the extent of action taken by the company to assist executives
in fulfilling the potentials discovered in an executive is unsatisfactory since 75% of
overall response was on the negative side.
Response Towards Training Needs Identification
TABLE 19: Table showing the response towards the Training needs identified through the Performance Appraisal.
TRAININD NEEDS IDENTIFICATION CODE No %
Are formulated into a training programme A 17 42.5
Not considered for training B 12 30.0
Is considered, but the wrong person ends with the right training C 3 10.0
Don’t know D 6 17.5
TOTAL 40 100
Effectiveness of PAS Bharat Electronics
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CHART 19:
IDENTIFICATION OF TRAINING NEEDS
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
A B
C D
% 42.50 30.00 10.00 17.50
A B C D
Source: field investigation
Observation: Highest % of the respondents (43%) has agreed to the fact that the training
needs are formulated into a training program in the company. As seen in the table, 30%
felt that the training needs identified are not considered for the training programme. 10%
of the respondents felt that the training needs are identified but the wrong person gets it.
18% was non-responsive as the respondents were not aware of what happens to the
training needs identified.
Inference: It can be inferred that the management is effective in recognizing the training
needs and then incorporating the needs into an appropriate training programme.
Response Towards The Type Of The Training Programme Conducted In The Company.
TABLE 20: Table showing the response towards the type of the training programme conducted in the company.
TRAINING NEEDS IDENTIFICATION CODE No %
Strongly helps in enhancing your Job Knowledge and Individual Skill.
A 18 45.0
Helps in overcoming the shortcomings identified in B 15 37.5
Effectiveness of PAS Bharat Electronics
M P Birla Institute of Mgmt 79
Doesn’t help in any way C 7 17.5
TOTAL 40 100.0
CHART 20:
TYPE OF TRAINING PROGRAMME CONDUCTED
17%
37%45%
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
A B C
%
Source: field investigation
Observation: 45% of respondents agreed that the training programme conducted in the
company strongly helps in enhancing Job-Knowledge and Individual skill. This is a
strong point to be noted in the study as the training program influences the enhancement
of job skill. 37% of the respondents felt that the training program helps in overcoming the
shortcomings identified in the employee. 18% of the respondents said the training
program conducted doesn’t help in any way.
Inference: Important is the fact that many respondents felt that the training program
strongly helps in enhancing job knowledge and individual skill. This also shows that the
Effectiveness of PAS Bharat Electronics
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management designs a training program based on the training needs identified through
the appraisal procedure. The types of training programs are Job-Knowledge and
Individual skill oriented.
Response Towards Effectiveness Of Training Programme
TABLE 21: Table showing the response towards the effectiveness of training program in making an employee confident in terms of Managerial and other skills
EFFECTIVENESS OF TRAINING PROGRAMME No %
Yes 34 85
No 6 15
TOTAL 40 100
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CHART 21:
EFFECTIVENESS OF TRAINING PROGRAMME
yes85%
no15%
Source: field investigation
Observation: Training program helps in building an employee’s personality. Also
training programs if effective increases the productivity of the employee, which, in turn,
will increase the productivity of the organization as a whole.
85% of the respondents agreed that the training programs make executives confident in
terms of managerial and other skills. 15% of the respondents didn’t agree to this point.
Inference: This implies that the training program helps in making an executive confident
in terms of managerial and other skills.
Response Towards The Overall Feeling About The Performance Appraisal System
TABLE 22: Table showing the response towards the overall feeling about the Performance Appraisal system.
OVER FEELING ABOUT PAS CODE No %
Highly relevant in the present economic scenario,
Provides an opportunity for growth
A
15 37.5
Not of much value as it does not help in any
enhancement
B
17 42.5
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Is of no significance in the present scenario, Not at all
growth oriented
C
6 15.0
Highly irrelevant. Does not help the individual or the
company
D
2 5.0
TOTAL 40 100.0
CHART 22:
OVERALL FEELING ABOUT PAS
38%
42%
15%
5%
ABCD
Source: field investigation
Observation: 38% of the respondents felt that the Performance appraisal is highly
relevant in the present scenario as well as provides an opportunity for growth. Also 42%
of the respondents said that the performance appraisal is not of much value, as it doesn’t
help in any enhancement. Some of the respondents 15% of them felt that the Performance
Appraisal is not growth oriented. Barely 5% of the respondents felt that the appraisal
procedure is irrelevant.
Inference: This question tries to analyze the overall opinion of the executives about the
Performance Appraisal. This shows that the executives respect the appraisal procedure
being followed in the company but there are few who feel that it is of not much value.
Effectiveness of PAS Bharat Electronics
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Questionnaire 2 (To The Raters)
Response Towards Level Of Interpersonal Relationship Affecting The Appraisal
Q1. Do you think that the level of interpersonal relationships with the appraisee
influences the performance appraisal process? If so, up to what extent?
TABLE 23: Table showing response towards Level of interpersonal relationship affecting the appraisal
LEVEL OF INTERPERSONAL RELATIONSHIP
AFFECTING THE APPRAISAL
No %
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AFFECTING THE APPRAISAL
Yes to a very large extent 9 30.0
To a certain extent 17 56.7
Depends 4 13.4
Not much 0 0
TOTAL 30 100.0
CHART 23:
INTERPERSONAL RELATIONSHIP AFFECTIG APPRAISAL
30%
57%
13% 0%
yes to a very large extent to a certain extent depends not much
Source: field investigation
Observation: Almost all the respondents felt that the level of interpersonal relationship
influences the appraisal procedure. The respondents were then questioned to what level
does it affect. 30% of the respondents felt that it effects to a very large extent. Again
majority of the respondents 57% felt that the interpersonal relationship affects to a certain
level. 13% felt that it depends on the person rating. None felt that the level of relationship
does not influence the performance rating.
Inference: This shows that the raters feel that the level of interpersonal relationship
influences the rating of the executives to a certain extent. This can be understood by the
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fact that the supervisor and the subordinate share a common task. Also the rater has to
consider the behaviour of the subordinate while rating, which again depends on the level
of interpersonal relationship shared by the rater and the ratee.
Response Towards Appraisee Getting A Feedback After Appraisal
Q2. After the appraisal, does the Appraisee get feedback? TABLE 24: Table showing the response about the appraisee getting feedback after the appraisal.
FEEDBACK AFTER APPRAISAL No %
Yes 8 26.7
No 14 46.7
Sometimes 8 26.7
Effectiveness of PAS Bharat Electronics
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TOTAL 30 100.0
CHART 24:
0.00
10.00
20.00
30.00
40.00
50.00
yes no sometimes
FEEDBACK AFTER APPRAISAL
yesnosometimes
Source: field investigation
Observation: This question was asked to the respondents in order to know how well the
executives get to know about their performance. Only 27% of the respondents agreed that
they let appraisees know about their performance. Most of the respondents i.e. 47%
agreed that they don’t give feedback. 27% of the respondents give feedback occasionally.
Inference: The executive or the ratee will know as to where they stand in the eyes of the
Supervisor/Management if the feedback is given. This would help the executive improve
on their future performance. Hence effective steps need to taken in order to provide
feedback to the ratees. Response Towards Providing An Executive With Counseling &
Training After Appraisal
Q3. After the performance appraisal and feedback, do the Appraisee get counseling and
training, if needed, to improve their performance in future?
TABLE 25:Table showing the response about the executives getting counseling and training (if needed) after the performance appraisal and feedback.
Effectiveness of PAS Bharat Electronics
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PROVIDING AN EMPLOYEE WITH COUNSELING &
TRAINING AFTER APPRAISAL No %
Yes 8 26.7
No 16 53.3
Sometimes 6 20.0
TOTAL 30 100.0
CHART 25:
COUNSELING & TRAININGAFTER APPRAISAL
0.00
10.00
20.00
30.00
40.00
50.00
60.00
yes no sometimes
%
Source: field investigation
Observation: This question was asked in order to get the feel about the
training/counseling programs conducted by the company. The responses were not very
good, indicating only 27% of respondents agreeing to the fact that the executives are
given counseling and training. As much as 53% of the respondents opined that the
training is not provided. Another 6% of the respondents answered that counseling is
provided infrequently.
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Inference: From the above analysis it can be said that management should take
responsive steps in designing a counseling/training program that will foster the growth of
executives.
Response Towards Avoidance Of Criticism
Q4. Do you try to avoid criticism?
TABLE 26: Table showing the response the avoidance of criticism
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AVOIDANCE OF CRITICISM No %
Yes 15 50
No 9 30
Sometimes 6 20
TOTAL 30 100
CHART 26:
AVOIDENCE OF CRITICISM
yes
no
sometimes
0.00
10.00
20.00
30.00
40.00
50.00
60.00
0 1 2 3 4
%
Source: field investigation
Observation: Constructive criticism if taken in a positive way can influence the growth of
an executive’s performance in a positive manner. The respondents (most of them) felt it
is not fair not to give criticism, especially if the criticism is taken seriously. Also if it a
justifiable one, they would like to criticize. 50% of the respondents said that they would
avoid criticism. 30% responded that they avoid criticism where as 20% of the
Effectiveness of PAS Bharat Electronics
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respondents opined that criticize when necessary.
Inference: It can be inferred from the above responses that the raters give importance not
only to the performance appraisal system, but also to individual executive growth. As
mentioned if valid criticisms are taken in a positive manner, the executives can excel in
the performance.
Appraisers should not confront employees directly with criticism. Rather, they should
aim to let the evidence of poor performance emerge "naturally" during the course of the
appraisal interview. This can be done by way of open-ended questioning techniques that
encourage the executives to identify their own performance problems. Instead of blunt
statements or accusations, the appraisers should encourage an employee to talk freely
about their own impressions of their performance
Response Towards Importance Of Behaviour Over Personal
Characteristics
Q5. Is importance given to the Appraisee’s behaviour rather than on his/her personal
characteristics?
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TABLE 27: Table showing the response of employees towards importance being given to the executive’s behaviour rather than on his or her personal characteristics.
BEHAVOIUR OVER PERSONAL CHARACTERISTICS No %
Yes 12 40
No 1 4
Both 17 56
TOTAL 30 100
CHART 27:
yes n o b o th
%
B E H AV IO U R O V E R P E R S O N AL C H AR A C T E R IS T IC S
Source: field investigation
Observation: When evaluating an employee, importance is laid more on the
characteristics, which will showcase the employee’s performance on the job. Therefore
emphasis should be laid on the behaviour of an employee rather than on personal
characteristics. Only 40% of the respondents agreed to this fact. The remaining 56% felt
that importance should be given both to the behaviour and personal characteristics, just 1
out of 30 respondents said that importance is given to the behavior.
Inference: The above analysis suggests that majority of the raters consider both the
executives behaviour on the job rather as well as personal characteristics.
Response Towards Understanding Of Appraisee's Job Responsibilities
Q6. Do you try to fully understand the Appraisee’s job duties and responsibilities? TABLE 28: Table showing the response towards the rater trying to fully understand the Executive’s job duties and responsibilities
Effectiveness of PAS Bharat Electronics
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UNDERSTANDING OF APPRAISEE’S JOB RESPONSIBILITIES No %
Yes 25 83
No 3 10
Sometimes 2 7
TOTAL 30 100
CHART 28:
UNDERSTANDING OF APPRAISEE'S JOB PERFORMANCE
83%
10%7%
yesnosometimes
Source: field investigation
Observation: Before evaluating an executives’ performance it is very much mandatory
for the rater to fully understand the ratee’s job responsibilities. Job responsibilities form a
basis for evaluation. This question explores the possibility of the raters being aware of the
employee’s job responsibilities. The respondents, 83% of them answered positively, 10%
agreed otherwise where as merely 7% says occasionally they try to understand.
Inference: It can be inferred from the above analysis that the raters are aware of the job
responsibilities of their appraisees. Also the management has set up a good policy in
performance evaluation of understanding the ratee’s job responsibility by the rater.
Response Towards Setting Of Company Policies
Q7. Does the company set the policies from time to time concerning who should
evaluate, when and how often?
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TABLE 29: Table showing the response towards the company setting the policies from time to time concerning who should evaluate, when and how often.
SETTING OF COMPANY POLICIES No %
Yes 11 37
No 11 37
Sometimes 8 26
TOTAL 30 100
CHART 29:
0 .0 0
1 0 .0 0
2 0 .0 0
3 0 .0 0
4 0 .0 0
S E T T IN G O F C O M P A N Y P O L IC IE S
y e sn os o m e tim e s
Source: field investigation
Observation: It is very much necessary for the company to set policies that guide the
evaluation system followed in the company. The above question was asked to gain an
insight about the company policies. 37% of the respondents said that the company sets
policies as to who should evaluate, when and how often, on a regular basis, where as 37%
of the respondents disagreed to this point. Another 26% of the respondents felt only
sometimes company sets policies regarding appraisal.
Inference: It is can be said that the executives are not clear as to what the company is
doing regarding the improvement of the present performance appraisal. Response Towards The Rater’s Problem/Error Encountered While
Evaluation
Effectiveness of PAS Bharat Electronics
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TABLE 30: Table showing the response towards problems while doing evaluation
RATER’S PROBLEM CODE No %
Problems with standards of evaluation A 13 29
Halo effect B 9 20
Leniency or harshness C 4 9
Central tendency errors D 5 11
Recency E 6 14
Contrast effects F 2 5
Personal bias G 3 7
No problem H 2 5
TOTAL 44 100
CHART 30:
ADVOCATE FOR EVALUATION
29%
20%
9%
11%
14%
5%
7%5%
ABCDEFGH
Source: field investigation
One of the barriers for proper evaluation is the inhibition that a rater has towards the
ratee. The raters were asked for the opinion about the factors influencing the appraisal
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procedure. The description of each of the problem was explained, and response collected.
Each respondent could tick more than one choice if hey feel there are more problems.
Observation: 29% of the response was that the problem existed because of the evaluation
standards. Halo effect and Recency of events accounted for 20% and 14% respectively.
About 9% felt Leniency /harshness affected the performance rating. 11% said that
Central tendency influenced the evaluation process. 5%, 7% felt the problem of contrast
effect and personal bias respectively. 5% felt that these problems do not exist while
rating.
Inference: The raters themselves (a majority of them) agree that problems with
performance standards do affect the evaluation procedure. This can be eradicated by
conducting proper training programs designed specially for the raters.
Response Towards The Satisfaction Of The Ratees With The Rater’s Evaluation
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Q9. Is your Appraisee satisfied with your evaluation?
TABLE 31: Table showing the response towards satisfaction of the ratees
SATISFACTION OF THE RATEES WITH THEIR
APPRAISAL No %
Yes 8 27
No 5 17
Don’t know 17 56
TOTAL 30 100
CHART 31:
SATISFACTION OF THE RATEES
0.00
10.00
20.00
30.00
40.00
50.00
60.00
yes no don’t know
Source: field investigation
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Observation: This question was asked is to analyze the overall opinion about the
performance appraisal system followed in the company. Since the question was asked to
the raters (a majority of them) 56% felt that they did not know about how the ratees felt
about the appraisal done by them. This can be understood from the fact that the raters
won’t know what happens to the final analysis of executives. Abo ut 27% of them felt that
the appraisees are satisfied with their rating. Only 17% agreed that the appraisees are not
satisfied.
Inference: It can be concluded that the raters are not aware about the satisfaction of the
appraisees towards the evaluation done by them.
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Advocate For Evaluation
TABLE 32: Table showing the response towards the rater advocating a method for
evaluation.
ADVOCATE FOR EVALUATION CODE No %
Rating by a committee of several supervisors A 1 3
Rating by the executives’ peers (co-workers) B 1 3
Rating by executives’ sub-ordinates C 3 10
Rating by someone outside the immediate work situation D 0 0
Self-evaluation by the executives E 3 10
360-degree evaluation F 22 74
TOTAL 30 100
CHART 32:
ADVOCATE FOR EVALUATION
3% 3%
10%
0%
10%
74%
ABCDEF
Source: field investigation
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Observation: There are many ways in which performance can be evaluated. This question
was asked to the raters as to what system they would advocate, if not for the present
system followed in the company. 3% favored rating by the employee’s peers. About 3%
the respondents encouraged rating by a committee of several supervisors. 10% of the
respondents suggested appraisal by the subordinates, 10% on self –evaluation. But the
highest % of respondents favoured 360-degree evaluation.
Inference: It can be inferred from the above analysis that given an option many
executives would prefer 360-degree appraisal.
Effectiveness of PAS Bharat Electronics
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Findings Of Research
From the responses collected it can be inferred that the employees are aware of
the present Performance appraisal System followed in the company. This is evident
from the responses collected from the raters as well as the ratees. 100% of the ratees
gave positive answer.
80% of the executives are partially satisfied with the performance appraisal
system followed in the company. This shows that the present performance appraisal
system is satisfactory only to some extent. Further improvement in the system can be
made in order to attain full satisfaction of the employees/executives of the company.
Greater part agrees that the performance standards set are clear and achievable.
It can be seen from the analysis; the ratees have a good knowledge about who
their respective Reporting and the Reviewing officers are. 95% of the respondents
knew the rating officers.
Majority of the respondents i.e. 62% favored training for the appraisers to carry
appraisal programme.
Only 10% of the respondents agreed that they have been counseled after the
appraisal programme, where as the major part – 57% of the respondents says that they
have never been counseled.
In response to the company spending of considerable time and attention for the
performance appraisal system, 50% of the respondents felt that the company spends
the necessary time and attention in following the Performance appraisal System,
whereas 50% of the respondents flatly disagreed to the concept.
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72% of the executives surveyed are satisfied with the Self-Appraisal process
being followed in the company. The general awareness about the traits/attributes is
average (52%).
It can be said that the present system of performance appraisal is effective in
bringing out the performance feed back by the reviewing and reporting officers. The
employees also have no issues about the rating by two reviewing officers since 67%
of the respondents answered in favour of it.
55% of the respondents agree that the help and guidance provided is sufficient
indicating that the management spends considerable time on providing employees
with help and guidance.
45% of the respondents agreed to the fact that the discussion with the reporting
/reviewing officer provides with a platform to discuss the executives ratings.
The executives view the training program conducted to develop managerial skills
as important.
Many executives do face the difficulty of communicating with their appraisers.
This can be understood since 67% of the respondents felt there exists performance
related communication gap between the rater and ratee.
55% of the respondents agreed that the performance appraisal is very much
necessary for the Job-designation they are holding.
68% of the respondents felt that the present appraisal system should be renewed.
A set of respondents suggested an appraisal system where in the whole process is
transparent so that the appraisee can know what are his/her weak points and hence
improve on that. Many felt the need of a better format where there is enough space is
available to fill up the KPAs/achievements.
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The degree of mutual understanding in work relationships with the executive’s
superior is quite high. Overall 83% of the respondents agree that the degree of mutual
understanding is High.
From the ratees’ point, the possibility of an unbiased assessment is high. This
implies that there is no bias during the evaluation.
40% of the respondents agree to the fact that the possibility of management
discovering the potential for improvement is quite high.
The extent of action taken by the company to assist executives in fulfilling the
potentials discovered in an executive is unsatisfactory since 75% of overall response
was on the negative side.
Respondents feel that the training program strongly helps in enhancing job
knowledge and individual skill.
45% of respondents agreed that the training programme conducted in the company
strongly helps in enhancing Job-Knowledge and Individual skill.
38% of the employees felt that the Performance appraisal is highly relevant in
the present scenario as well as provides an opportunity for growth. Also 42% of the
respondents opinioned that the performance appraisal is not of much value as it don’t
help in any enhancement.
Raters feel that the level of interpersonal relationship influences the rating of the
employees to a certain extent.
Most of the respondents (raters) i.e. 47% agreed that they don’t give feedback.
27% of the respondents give feedback occasionally.
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Majority of the raters consider both the executives’ behaviour on the job as well
as personal characteristics.
As much as 53% of raters surveyed opined that the training/counseling is not
provided to the appraisers after the appraisal programme.
50% of the respondents said that they would avoid criticism. 30% responded
that they avoid criticism where as 20% of the respondents opined that criticize when
necessary.
Raters are aware of the job responsibilities of their appraisees since 83% of the
respondents answered positively.
The raters themselves (a majority of them) agree that problems with
performance standards do affect the evaluation procedure.
One important finding is that most of the raters do not have the opinion about
the satisfaction of the appraisees towards the evaluation done by them. 56% said that
they did not know how the ratees felt about their evaluation.
Highest % of respondents favour 360-degree evaluation.
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Recommendations
Executives should participate with their supervisors in the creation of their
own performance goals and development plans. Mutual agreement is a key
to success. A plan wherein the executives feel some degree of ownership
is more likely to be accepted than one that is imposed. Both appraisee and
appraisers are to be held accountable for performance management. The
performance related communication gap would consequently diminish.
Performance targets should be set in the beginning of the year.
Effective performance management requires all executives with
supervisory responsibilities to develop new coaching skills. The five core
competencies for effective coaching are:
• Ability to Influence
• Active Listening
• Conceptual Thinking,
• Holding People Accountable
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• Interpersonal Understanding
Coaching to the appraisees should be given throughout the appraisal
process. The coaching that begins during the planning phase must
continue throughout the performance plan year. Although coaching
opportunities are built into the performance plan at agreed-upon points,
they should take place whenever either party sees a need. Coaching can
occur during formal meetings or through brief contacts.
Training should be provided to fill up appraisal forms.
A free and fair feedback to be given to the appraisee so that he/she can
give there best to the company and also allows self-development.
Frequent mini-appraisals and feedback sessions will ensure that executives
receive the ongoing guidance, support and encouragement they need.
Multi-source assessment of executive behavioral competencies to provide
feedback and as an input to the executive’s performance plan should be
employed i.e. performance feedback from others beyond their manager.
The assessment should take place in the planning phase. In this way,
employees receive feedback and still have an opportunity to address any
resulting developmental needs during the year.
Incentives, financial or non-financial, may offered to encourage
supervisors to make special efforts to help poor performers improve.
Individual officers performance should be reviewed with the team seniors.
The whole process of performance appraisal should be made more
transparent.
It has been identified that the appraisal form has limited space due to
which additional sheets need to be attached to fill up key performance area
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or achievements. Hence there is a requirement for the redesign of the
present appraisal format with adequate space so that appraisers can fill up
expediently whatever is required.
With the availability of technology for sharing documents, the entire
documentation process can be fully automated. The system should be
developed so that it does the following:
• Generates multi-source competency assessment data for distribution
and analysis
• Creates a planning document that is shared, accessible and easily
updated
• Converts the planning document into a year-end feedback summary
form
Important system features include:
• A secure user-friendly interface
• A start/stop/save capability
• Easy document storage
• Company-wide access with adequate security
• A download capacity
• Ease of workflow.
• An online training component
Majority of the respondents have advocated 360-degree appraisal system.
360 degree appraisals are a powerful developmental method and quite
different to traditional manager-subordinate appraisals (which fulfill
different purposes). As such a 360 degree process does not replace the
traditional one-to-one process - it augments it, and can be used as a stand-
alone development method.
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360-degree appraisals involve the appraisee receiving feedback from
people (named or anonymous) whose views are considered helpful and
relevant. The feedback is typically provided on a form showing job
skills/abilities/attitudinal/behavioral criteria and some sort of scoring or
value judgement system. The appraisee should also assess himself or
herself using the same feedback instrument or form.
360-degree appraisal system should be first introduced in the company for
a feedback purpose subsequently for a year for the experimental purpose.
Based on the success of the experiment it ought to be introduced.
A guide for introducing 360-degree appraisals:
• Choose/design a system (or system provider), i.e., research and
investigate options (other local or same-sector companies using 360
already are a helpful reference point, or trade association HR group, or
a specialist HR advisory body).
• When decided on a system, pilot it with a few people to make sure it
does what expected. (It's best to establish some simple parameters or
KPA's by which one can make this assessment, rather than basing
success on instinct or subjective views.)
• When satisfied with the system, launch it via a seminar or workshop,
preferably including role-plays and/or practical demonstration.
• Support the implementation with ongoing training, (include an
overview in your induction training as well), a written process
guide/booklet, and also publish process and standards on intranet.
• Establish review and monitoring responsibility.
• Ensure any 360-degree appraisal system is applied from top down, not
bottom up, so everyone can see that the CEO is happy to undertake
what he/she expects all the other staff to do. (As with anything else, if
Effectiveness of PAS Bharat Electronics
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the CEO and board agree to undertake it first, the system will have
much stronger take-up and credibility.)
PERFORMANCE APPRAISAL FORM
E I – E IV, E V (grades) PART ‘A’
SELF-APPRAISAL (TO BE FILLED BY THE APPRAISEE)
TARGET IS SET/ TASKS ASSIGNED
(RELATING TO KPA)
EXENT OF
ACHIVEMENT
CONSTRAINTS IF
ANY
GENERAL COMMENTS RELATING TO
PERFORMANCE
DEVELOPMENT AND TRAINING NEEDS
PERIOD REPORTING OFFICER
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SIGNATURE OF APPRAISEE: DATE:
(TO BE FILLED BY REPORTING & REVIEWING OFFICER) NAME: (DEFINITION OF THE RARAMETERS GIVEN OVERLEAF) PERIOD:
PART’B’
PERFORMANCE APPRAISAL
PARAMETERS WIEGH TAGE
RATING ON A 10 POINT SCALE
FACTOR SCORE RATING X WEIGHTAGE
REPORTING OFFICER
REVIEWING OFFICER
REPORTING OFFICER
REVIEWING OFFICER
1. ACCOMPLISHMENT OF TASKS
4
2. QUALITY OF DICISION MAKING
4
3. IMPLEMENTATION OF TORQUE
10
4. UTILISATION OF RESOURCES
4
5.TRAINING & DEVELOPMENT OF SUBORDINATES
3
6. MAINTENANCE OF DISCIPLINE
5
PART’C’
POTENTIAL APPRAISAL
1. PROFESSIONAL COMPETENCE
2. CONCEPTUAL ABILITY
3. INTER-PERSONAL SKILLS
4. COMMUNICATION
5. INITIATIVE & INTREPRENUERSHIP
6.TEAM BUILING 7. PLANNING ABILITY
8. LEADERSHIP
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PART’D’
GENERAL TRAITS
1. INTERGRITY 2. AMENABILITY TO DISCIPLENE 3. COMMITMENT 4. PERSEVERENCE
SIGNATURE OF THE REPORTING OFFICER: DATE: SIGNATURE OF THE RETRIEWING OFFICER: DATE: GENERAL COMMENTS
(In this section, a pen picture of the entire reflecting his predominant characteristics,
outstanding contributions, if any, social attributes relevant to work, his awareness of
socio-economic environmental, etc., along with the reasons for exceptional/unacceptable
ratings may be given)
Reporting officer
Reviewing officer
Functional head
Global assessment of promotability:
Reporting officer Reviewing officer
Out of turn
In normal course
To wait
Unproven
PART-E
DEVELOPMENT PLAN 1.0 Major strengths and weaknesses:
REPORTING OFFICER:
REVIEWING OFFICER:
2.0 Does the executive need any change of placement/job rotation for development? If
so, to which area?
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so, to which area?
3.0 Counseling: state briefly the result of counseling
TRAINING NEEDS
NAME: DESIGNATION:
DIVISION: PERIOD:
RECOMMENDED TRAINING PROGRAMME:
REPORTING OFFICER
REVIEWING OFFICER
SIGNATURE OF REPORTING OFFICER: DATE:
SIGNATURE OF REVIEWING OFFICER: DATE:
Reporting officer and reviewing officer to ensure
Property returns are submitted before/towarding
Performance appraisal
PART – F
SUMMARY OF ASSESSMENT
(TO BE FILLED BY CORPORATE PERSONNEL DEPARTMENT)
NAME:
PERIOD:
1.0 TOTAL FACTOR SCORE:
TOTAL FACTOR
SCORE
WIEGHTAGE WEIGHTED TOTAL
FACTOR SCORE
Reporting officer
Reviewing officer
FINAL SCORE
2.0 GRADING (circle the appropriate letter)
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On the basis of total score
By review committee
A+
A+
A
A
B+
B+
B
B
C
C
C-
C-
SIGNATURE:
QUESTIONNAIRE - 1 (To the Ratees)
Dear Sir/Madam, I, Swapna.M.U, MBA student at MP Birla Institute of Management am doing a project titled “EFFECTIVENESS OF PERFORMANCE APPRAISAL SYSTEM AT BHARAT ELECTRONICS LTD”. Please spend time in filling up this Questionnaire, with your valuable opinions and suggestions. The information so gathered will be maintained confidential and used only for the research purpose as mentioned.
SECTION A
Employee Details Age: Grade: Total number of years of service at BEL: Dept: Designation held in the company:
SECTION B For the Questions that follow Please tick (¥) from the given option. 1. Are you aware of the Performance Appraisal System followed at BEL?
�� Yes �� No
2. How satisfied are you with the present Performance Appraisal system? �� Fully satisfied �� Partially satisfied �� Not at all satisfied 3. The performance standards set are clear and achievable. �� Strongly agree �� Agree �� Disagree �� Strongly Disagree
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4. Do you know who are your Reporting officer and Reviewing officers? �� Yes �� No 5. Is it essential to provide training to the appraiser to develop his skills to carry appraisal programme? �� Yes, it is essential �� Sometimes essential �� No it is not essential 6. Have you been counseled at any time to improve your performance? �� Yes, I have �� Sometimes �� No, I have not 7. The management at BEL spends considerable amount of time and attention for the Performance Appraisal process. �� Strongly agree �� Agree �� Disagree �� Strongly Disagree 8. In the Performance Appraisal system at BE the “ Self Appraisal” forms a part. Do you think it is relevant? �� Yes �� No �� Not sure 9. Are you aware of the different traits/attributes according to which you are rated? �� Yes, completely �� No �� Not very sure 10. The traits/attributes so contained in the Performance appraisal system is sufficient. �� Agree �� Disagree If Disagree - What other traits/attributes do you think should be included? Please Specify ………………………………………………………………………………………………………………………………………………………………………………………………
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11. Is it relevant of the Performance Appraisal system at BEL in which Reporting and Reviewing officers rate you? �� Yes �� No �� Not sure 12. Help and guidance provided to you by your Reporting/Reviewing officers is: �� Highly Sufficient �� Sufficient �� Insufficient �� Highly Insufficient 13. The discussion of your Performance with that of the Reporting officer provides you with a platform, whereby you can discuss your ratings without fear/inhibitions �� Strongly agree �� Agree �� Disagree �� Strongly Disagree 14. The development of new or better managerial qualities and skills through the training programme, identified through the Performance Appraisal is: �� Significantly Important �� Important �� Not at all Important 15. The need for Performance Appraisals for officers like you is: �� Very much necessary �� Necessary �� Not Necessary 16. There exist performance related communication gap between the Rater and Ratee �� Strongly agree �� Agree �� Disagree �� Strongly Disagree 17. Do you think the present Performance Appraisal system should be reviewed? �� Yes �� No �� Can’t say If yes, what are your suggestions? ………………………………………………………………………………………………………………………………………………………………………………………………
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……………………………………… ……………………………………………………………………………………………………………………………………………………… …………………………………………………… …………………………………………
SECTION C From Questions 20 to 23, Rate as follows: 4-Very High 3-Quite High 2-Quite Low 1-Very Low 19. The degree of Mutual Understanding in your work relationships with your superior is: ___ 20. The Possibility of Unbiased assessment of your Performance, relative to that of your colleagues under the present Appraisal system is: ___ (I.e. Do you think there is no Partiality when you are rated?) 21. The extent of effort in discovering your potential for higher responsibility through your Appraisal is: ___ 22. The extent of action taken by the company to assist you in fulfilling the Potentials discovered in you is: ___
SECTION D
For the Questions that follow, Please tick whichever option you think is applicable 23. The training needs identified through the Performance Appraisal: (a) Are formulated into a training programme at BEL (b) Not considered for training (c) Is considered; but the wrong person ends up with the right training (d) Don’t Know 24. The training programme conducted at BEL: (a) Strongly helps in enhancing your Job Knowledge and Individual Skill. (b) Helps in overcoming the shortcomings identified in you. (c) Doesn’t help in any way. 25. Is the Training Programme effective in making you confident in terms of managerial and other skills: � Yes � No 26. What is your overall feeling about the Performance Appraisal system at BEL?
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(a) Highly relevant in the present economic scenario, Provides an opportunity for growth.
(b) Not of much value as it does not help in any enhancement. (c) Is of no significance in the present scenario, Not at all growth oriented. (d) Highly irrelevant. Does not help the individual or the company.
Thank-You!!!
QUESTIONNAIRE - 2 (To the Raters – Answer only if you belong to the grade E III and above)
1. Do you think that the level of interpersonal relationships with the appraisee influences the performance appraisal process? If so, up to what extent? �� Yes To a very large extent �� To a certain extent �� Depends �� Not much 2. After the appraisal, does the Appraisee get feedback? �� Yes �� No �� Sometimes 3. After the performance appraisal and feedback, do the Appraisee get counseling and training, if needed, to improve their performance in future? �� Yes �� No �� Sometimes 4. Do you try to avoid criticism? �� Yes �� No �� Sometimes 5. Is importance given to the Appraisee’s behaviour rather than on his/her personal characteristics? �� Yes �� No �� Both 6. Do you try to fully understand the Appraisee’s job duties and responsibilities? �� Yes �� No �� Sometimes
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7. Does the company set the policies from time to time concerning who should evaluate, when and how often? �� Yes �� No �� Sometimes 8. Do you encounter the following problem while doing evaluation?
�� Problems with standards of evaluation. �� Halo effect - tendency to let the assessment of an individual’s one trait
influence the evaluation of that person on other specific traits. �� Leniency or harshness. �� Central tendency errors – average ratings to all the executives in order to avoid commitment/involvement or due to lack of knowledge about the behavior of the executive. �� Recency of events errors. �� Contrast effects. �� Personal bias (Stereotyping).
9. Is your Appraisee satisfied with your evaluation? �� Yes �� No �� Don’t know 10. Which one of the following you advocate for evaluation?
�� Rating by a committee of several supervisors. �� Rating by the executives’ peers (co -workers). �� Rating by executives’ sub -ordinates. �� Rating by someone outside the immediate work situation. �� Self-evaluation by the executives �� 360-degree evaluation.
Thank-You!!!
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Bibliography
BOOKS:
“ Human Resource Management “ by Robert L. Mathis and J ohn. H. Jackson
South western College Publications, USA 2003
“ Essentials of Human Resource Management “ by P. Subba Rao, Himalaya
Publishing house , 2003
“ Strategic Human Resource Management” by Michael Armstrong, Kogan page,
Newyork,2001
“ Strategic Human Resource Management” by Jefferey A Malo, Southwestern
College publications, USA 2002.
JOURNALS:
1. ICFAI HRM Review
2. Training & Development
3. Executive Excellence
4. O.D Communication
5. Management Next
6. Southern Asian Journal of management
7. Human Capital
8. ICFAI Effective executive
BUSINESS MAGAZINES:
1. Business Today
2. Business World
3. Economic Times
WEBSITES SURFED:
http://www.hr-guide.com/data/209.htm
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http://iso9k1.home.att.net/pa/performance_appraisal.html
http://www.performance-appraisal.com/home.htm
http://www.workplacetoolbox.com/index.jsp
http://www.unep.org/restrict/pas/paspa.htm
http://www.bel.com
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