performance appraisal bajaj allianz
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PERFORMANCE APPRISAL
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Chapter 1
Company Profile
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COMPANY PROFILE
Mission: To become a responsible customer focused market leader. We
still strive to understand the insurance needs of the consumers and
translate it into affordable products that deliver value for money.
Vision:
To be the first choice insurer for customers.
To be the prefer red employee for s ta ff i n the insurance
industry.
To be the number one insurer for creating shareholder value.
Bajaj Allianze Life Insurance
Is the fastest growing private life insurance company in India.
Currently have over 300000 satisfied customers.
Have Customer care centers in 156 cities with 28000 Insurance Consultant
providing the finest customer service.
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Bajaj Allianz General Insurance Company Limited is a joint venture
between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a
reputation of expertise, stability and strength.
Bajaj Allianz General Insurance received the Insurance Regulatory and
Development Authority (IRDA) certificate of Registration (R3) on
May 2nd, 2001 to conduct General Insurance business ( including
Health Insurance business) in India. The Company has an authorized
and paid up capital o f Rs.110 crores. Bajaj Auto holds 74% and
Allianz holds the remaining 26%. AG, Germany.
In i ts f i rs t year of operat ions the company has acquired the NO. 1
status among the private non-life insurers. As on 31 s t March 2003,
Bajaj Allianze General Insurance maintained its leadership position by
garnering a premium income of Rs.300 Crores. Bajaj Allianze also
became one of the few companies to make a profit in its first full year
of operations. Bajaj Allianz made a profit after tax of Rs.9.6 crores.
Bajaj Allianze today has a network of 40 offices spread across the
length and breadth of the country. From Surat to Sliliguri and Jammu
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to Thiruvananthapuram, all the 38 offices are interconnected with the
Head Office at Pune.
In the first half of the current financial year, 2004-05, Bajaj Allianz
generated a premium income of Rs.405 crores, achieving a growth of
84% and registered a 52% growth in Net profit of Rs. 20 Crores over
the last year for the same period. In the financial year 2003-04, the
premium earned was Rs.480 Crores, which is a jump of 60% and the
profit zoomed by 125% to Rs. 21.6% Crores.
Shareholders & Promoters
Bajaj Auto Limited
Bajaj Auto Limited is the largest manufacturer of two and three-
wheelers in India and also one of the largest manufacturers in the
world. Bajaj Auto has been in operation for over 55 years. As a
promoter of Bajaj Allianz General Insurance Company Ltd., Bajaj
Auto has the following to offer:
Vast distribution network.
Knowledge of Indian consumers.
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Financial strength and stability to support the insurance business
Allianz AG, Germany
Allianz Group is one of the world's leading insurers and financial services
providers.
Founded in 1890 in Berlin, Allianz is now present in more than 70
countries with over 177,000 employees. At the top of the international
group is the holding company, Allianz AG, with its head office in
Munich.
Allianz Group provides its more than 60 million customers worldwide
with a comprehensive range of services in the areas of
Property and casualty insurance,
Life and health insurance,
Asset management and banking.
In fiscal year 2005, Allianz's total revenues amounted to some 100.9
billion euros. At the end of 2005 Allianz Group had more than 1.26
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trillion euros in assets under management. Of this, 743 billion euros
were assets managed for third parties.
CORE COMPETENCIES AT BAJAJ ALLIANZ LIFE INSURANCE
Trust
Claims Philosophy Customer Orientation
Experienced and Expert Servicing Team
Superior Technology
Unique Forms of Risk Cover
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Chapter 2.
Introduction of Topic
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Introduction of Topic
From immemorial time, man has continuously assesses their capability with
others. This urge to do better has resulted in his continuously evolution which is
vital for the growth of any business. Performance Appraisal (PA) is one such
tool to measure the performance of an employee. Employee performance appraisal
is an effective way to determine the performance of the employees in an
organization. Performance Appraisal (PA) is mainly used to determine the wage
increase, promotions, transfer and layoffs, termination of services & the training
and development to the employees in an organization. It serves as a tool to
determine the future of the organization and visualize the career growth of the
employees.
Performance Appraisal (PA) is normally done by senior executives and the
senior manager in the organization to appraise the employee for their performance
and also to find out difficulties while meeting their goals. During this period of
carrying out the process the appraiser faces the problem in rating the
subordinate/employee/peer and sometime they may rate their subordinate wrongly,
which will block the whole purpose of the appraisal system.
From user testing, the traditional appraisal system found to be efficient in
the issues like: it help to evaluate the true abilities of employees,help employees to
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understand organizational goals, and to provide fast and effective feedback. The
users found the system easyto understand and use and were more satisfied with the
overalleffectiveness of the system.
The main focus of the study of this is to identify the areas in Performance
Appraisal System that would help in the organizational development. Every
organization has made it mandatory to have this appraisal done once in a year to
measure their employee performance. Hence, there should be well-defined
appraisal procedure which is properly used to evaluate employees performance.
This study report aims at covering all aspects related to performance.
In order to make this report comprehensive, sample appraisals are also provided.
This study was conducted at bajaj allianz life insurance co. ltd, new delhi
The objective of the questionnaire was to obtain employees opinion on
performance appraisal (PA) system in their organisation.
The Structural questionnaire prepared for HR survey comprised of two parts:
First part regards the demographic of the respondents, asking their
name, designation, qualifications and department in the company (Vice
President, Senior HR consultants, Business Development Executive), their
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tenure with the organisation and total experience.
The demographic characteristics of the respondent group were as follows.
There is Vice President who has experience of work since 15 years in the
organisation, Senior HR consultants who work experience of 1-5 years
experience, Business development executive who work experience of 0-1
years.
Second part of the questionnaire consisted of quantitative and
qualitative statements. In order to identify importance of the factors indetermining.
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Chapter 5
Scope & Objective
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OBJECTIVES OF THE PROJECT
The basic objectives of this project is:
To find out present performance appraisal
system used in the company.
To find about the employees views for the
system adopted by the company to appraise
their performance.
To know about the working scheme of the
company.
To suggest some measures for improving the
methods to appraise the performance of the
workers.
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Chapter 3.
Literature Review
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Performance Appraisal
What is Performance Appraisal?
Performance appraisal is a systematic and objective way of judging the
relative worth or ability of an employee in performing the task.
Performance appraisal helps to identify those who are
performing their assigned tasks and those who are not and the
reasons for such performance.
Modern Appraisal:-
Performance appraisal may be defined as a structured formal interaction between a
subordinate and supervision , that usually takes the form of a periodic interview
(annual or semi annual), in which the work performance of the subordinate is
examined and discussed with a view to identifying weakness and strengths as
well as opportu- nities for improvement and skills develop- ment.
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.
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By the same token , appraisal results are used to identify the poorer perform- ers
who may require some form of counseling , or in extreme cases ,demotion,
dismissal or decreases in pay . (Organizations need to be aware of laws in their
country that mi- ght restrict their capacity dismiss employees or decrease
pay).Whether this is an appropriate use of performance appraisal the assignment
and justification of rewards and penalties is very uncertain and contentious
matter.
Performance appraisal is used for :-
1. Identifying employees for salary increases , promotion , tran- sfer and
layoff or termination of services.
2. Determining training need for further improvement in performance.
3. Motivating employees by indicating their performance levels.
4. Establishing a basis for research and reference for personnel decisions in
future.
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Goals of the Performance Appraisal System :-
For supervisors, the process of performance management is one of the most
import- ant leadership responsibilities. The performance appraisal syatem has
three primary goals:-
1. To provide a formal means of constructive, open and honest com-
munication between the employees and his/her supervisor.
2. To enhance employee development through performance feedback and
through the identification of future professional development activities.
3. To measure and document job performance as a basis for making prom-
otion, compensation and other personnel management decision.
Who Should Conduct the Appraisal?
The individual (superviser) who has the authority to make hiring recommendations
and to assign work to the employee should be the person responsible for
completing the appraisal. Supervsors who donot directly observe or otherwise
measure the outcomes of a given emp- loyees job performance should seek input
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from individuals who do directly observe the employee (eg.A crew leader, group
leader, area co-ordinator, and other workers). This may be the case, especially in
larger departments/units. Its the responsibility of department/unit heads and
supervisors to prepare written performance appraisal and to conduct timely
appraisal meetings. If a given supervisor should delay or neglect to conduct an
appraisal, the affected employee is encouraged to initiate such or may contact the
Department of Human resources for assistance.
The Performance Appraisal Process
The figure outlines the performance appraisal process. Each step in the process is
crucial and is arranged logically.
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Objectives of
Performance Appraisal
Establish Job
Expectations
Design an
Appraisal Program
Appraise
Performance
Performance
Interview
Use Appraisal Data for
Appropriate Purpose
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Performance Standard and Goals
Performance standards and goals are the basis from which employee performance
is measured. The written performance appraisal should reflect how well the
employee performed against defined job responsibilities and previously established
goals and objectives. Effective goals and objectives must be specified, measurable
and reasonable and have a time frame.
Specific: - Objective and precise language is essential when developing
performance goals and objectives. Supervisors should use terms and
descriptions, which have the same meaning to the supervisor and the
employee. Detailed points rather tan vague descriptions are important for
understanding and documentation.
Measurable: - Goals and objectives should be written so that
accomplishment or degrees of accomplishment can be objectively
measured.
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Reasonable: - Goals and objectives which are too high or rigid may
actually inhibited an employee`s performance. Individuals may become
discouraged and give up if perceive expectations to be unattainable. Goals
and objectives should be reasonable given time frames, circumstances and
departmental/unit expectations.
Time frame: - A specific period of time for accomplishment should be
identified with each goals and objectives.
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METHODS OF PERFORMANCE APPRAISAL:-
Terms used to describe the various type of rating systems as well as a definition or
performance appraisal is as follows:
Behavioral Anchored Rating Scales :- The terms used to decribe a
performance rating that focused on specific behaviors or sets as
indicators of effective or ineffective performance , rather than on
broadly stated adjectives such as average, above average, or below
average. Other variations were :
1. Behavioral observations scale.
2. Behavioral expectations scale.
3. Numerically anchored ating scales.
Checklists:- The term used to define a set of adjectives or descriptive
statements. If the rather believed the emplotee possessed a trait listed,
the rather checked the item , if not the ather left the item blank, rating
score from the check- list equaled the number of checks.
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Critical Incident Technique :- The term used to describe a meth- od of
performance appraisal that made list of statements of very effective and
very ineffective behavior foremploye. The lists have been combined into
categories , which vary with job .Once the cat- egories had been developed
and statements of effective and ineffe- ctive behavior had been provided
,the evaluator prepared a log for each employee. Doring the evaluation
period , the evaluator reco- rded examples of critical behaviors in each of
the categories and the log has been used to evaluate the employee at the
end of the evaluation period.
Forced Choice Method : - This appraisal method has been developed to
prevent evaluators from rating employees to high. Using this method, the
evaluator has to select from a set of descriptive statements that apply to
the employee. The statements have been weighted and summed to at,
effective- ness index.
Forced Distribution:- The term used to describe an appraisal system
similar to grading on a curve. The evaluator had been asked to rate
employees in some fixed distribution of categories. One way to do this has
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been to type the name of each employee on a card and ask the evaluators
so sort the cards into piles corresponding to rating.
Graphic Rating Scale:- The term used to define the oldest and most
widely used performance appraisal method. The evaluators are given a
graph and asked to rate the employees on each of the characteristics can
vary one to one hundred. The rating can be a matrix of boxes for the
evaluator to check off or a bar graph wh-ere the evaluator checked off a
loca- tion relative to the evaluators rating.
Narrative or Essay Evaluation:- This appraisal method asked the
evaluator to describe strengths and weakness of an emplyee`s beh- avior.
Some companies still use this method exclu- sively , where- as in others ,
the method has been combined with the graphic rating scale.
Management by Objective:- The management by objectives perfo-
rmance appraisal method has the supervisor and employee get tog- ether to
set objectives in quantifilable terms.
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Paired Comparison :- The term used to describe an appraisal method for
taking employee. First the names of the employees to be evalu- ated have
been placed on separated sheets in a predetermined order , so that each
person has been compared with all other employees to be evaluated. The
evaluator then checks the person he or she felt had been the better of the
two on the criterion for each comparison. Typically the criterion has been
the employees over all ability to do the present job. The number of tines a
person has been preferred is tallied and the tally developed is index of the
number being evaluat- ed.
Ranking :- The term ranking has been used to describe an altern- ative
method of performance appraisal where the supervisor has been asked to
order his or her employees in terms of performance from highest to
lowest.
Weighted Checklist :- The term used to describe a performance
appraisal method where supervisors or personnel specialists fam- iliar
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with the jobs being evaluated prepared a large list of descrip- tive
statements about effective and ineffective behavior on jobs.
Purpose of Traditional Performance Appraisal
Performance appraisal for evaluation using the traditional approach has served the
following purposes:-
Promotion , separation and transfer decision.
Feedback to the employee regarding how the organization viewed the
employee`s performance.
Evaluations of relative contributions made by individuals and entire
departments in achieving higher level organization goals.
Criteria for evaluating the effectiveness of selection and placement
decisions including the relevance information used n the decision with in the
organization.
Reward decisions , including merit increases , promotions and other rewards.
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Ascertaining and diagnosing training and development decisions
Criteria for evaluating the success of training and development decisions.
Information upon which work scheduling plans, budgeting and human
resources planning can be used.
Two serious flaws in the traditional approach in the performance appraisal exist.
The flaws are:
Organizational performance appraisal is typically primarily concerned with the
past rather than being forward looking through the use of setting objectives or
goals.
Performance appraisal is usually tied to the employees` salary reviewed. Dealing
with salary generally overwhelmed and block creative, meaningful or
comprehensive consideration of performance goals.
Developmental Performance Approach Purposes
The developmental approach to performance appraisal has been related to
employees as individuals. This approach has been concerned with the use of
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performance appraisal as a contributor to employee motivation, development and
human resources planning. The development approach contained all of the
traditional overall organizational performance appraisal purposes and the following
additional purposes:
Provided employees the opportunity to formally indicate the direction and
level of the employee`s ambition.
Show organizational interest it employee development ,which was cited to
help the enterprise retain ambitious , capable employees instead of losing the
employees to competitors.
Provided a structure for communications between employees and
management to help clarify expectations of the employee by management
and the employee.
Provide satisfaction and encouragement to the employee who has been
trying to perform well.
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Expectation from a Manager doing a Performance Appraisal
The following is typically expected from company manager when doing
performance appraisal:
Translate organizational goals into individual job objective.
Communicate management`s expectations regarding employee performance.
Provide feedback to employee about job performance in light of
management`s objectives.
Coach the employee on how to achieve job objectives/requirements.
Diagnose the employee`s strengths and weaknesses.
Determine what kind of development activities might help the employee
better utilize his or her skills improve performance on the current job.
Problem of criterion
A brand definition of criterion is that which is to be predicated. This definition
refers to the evaluative standards, which measures are easy if the job is clearly
defined but difficult if it is broad. At lower level of an organization there are
specific jobs and certain tangible and objective standards of performance can be
identified. Further up in the hierarchy, jobs become more complex and clear-cut,
tangible standards of performance are difficult to specify.
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Irrespective of the level by and large most companies use eleven performance
measures:
1. Quantity of work
2. Quality of work
3. Waste and brokerage
4. Money earned
5. Job knowledge
6. Job tenure
7. Absenteeism
8. Rate of advancement
9. Self judgment
10.Judgment by peers
11.Judgment by supervisors.
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Instructions for using performance appraisal system
Purpose:
The performance evaluation system is used to evaluate employees past work
performance, develop a work plan for the next review period and determine what
resources are needed for improving performance to become more effective.
Evaluations also develop employees potential through training and counseling.
The process is designed to be interactive between the employee and the superv-isor
with the following objectives in mind:
Use to recognize and reward employees for positive work beha- vior. Use
the results as a basis for appropriate personnel actions.
Encourage employees to continuously improve, support team
endeavors, develop professionally and perform at their maximum
potential.
Communicate and clarify the goals and objectives of the division,
department and the City in relation to the employees` work expec- tation
Involve employees in improving their effectiveness and perform- ance.
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Provide an employee improvement plan where performance is rated
below standard.
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Performance Evaluation System :
The performance evaluation form is used for all performance reviews. This
includes probationary evaluations ( expect Police and Fire have their own
process), annual evaluation and special evaluation for reg -ular full time and
regular part time employees. The evaluation periods are generally twelve months,
expect for special evaluations, which may be for shorter periods of time. Merit
step increases are conducted on the employees` anniversary date (assuming
satisfactory performan- ce) and not during the annual performance review.
Supervisor Responsibility :
Each department will conduct employee evaluations for all employees in the
department during the same month. Human resources will notify department heads
30 days prior to when evaluations are due. Each supervisor completing the
performance evaluation should review the following instructions, the rating criteria
definitions and familiarize him or herself with the procedure prior to competing the
evaluations. Upon completion of the evaluation form by the supervi- sor (rater) and
the reviewer (one level above the rater), then the rater will meet with the completed
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form for signatures. Supervisors should provide written comments on the
evaluation form for each performa- nce criteria and list specific examples. Use
N/A if the rating criteria are not applicable. The supervisor is responsible for
completing the evaluation process at the beginning of the rating period and again at
6 month to monitor progress and adjust time lines if necessary. At that time, a new
12-month work plan is established with the employee and the process repeats itself.
Supervisors shall coordinate the discussion of performance evaluations with
employees in a manner that allows privacy. The supervisor shall have the
employee to complete the Self Performance Evaluation Form as a discussion tool.
Forms:
There are two performance evaluation forms which you will always use:
The actual performance evaluation form which includes the cover
page called the Summary Worksheet.
The Employee Self-Evaluation form.
There are two other forms you may need to use:
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The Performance Improvement Plan form (used when a rating is #1
Unacceptable or #2 Improvement needed), and attached to
Performance Evaluation form.
Performance Goals form (used by department to follow up mid-year
on goals set in evaluation), optional and not returned to Human
Resources.
Rating Process And Criteria :
5 = outstanding performance
4 = exceed expectations
3 = meet expectations
2 = needs improvement
1 = unacceptable
A rating of 1 or 2 requires the supervisor to complete a Performance Improvement
Plan form to document the problem, including specific examples, guidance on
improvement, a specific timetable for improvement, and a follow up evaluation to
monitor progress.
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Signature On The Evaluation Form
After the supervisor completes the performance evaluation with the
employee, both the supervisor and employee sign the form. The next level of
review is the Reviewer, one level above the supervisor performing the
evaluation (the rater). Depending on the Department structure, the reviewer
could be the Department head, Deputy Director, or a Division Manager. The
mid-year review will only involve the employee and his/her supervisor with
their signatures and the mid-year process does not go into the personnel file.
Evaluation When A New Supervisor is Appointed :
If the employee has an evaluation due and supervisor is appointed, the new
supervisor likely has not had the opportunity to properly evaluate the
employee`s performance. In this instant the new supervisor will evaluate the
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employee after 90 days. If possible, the supervisor that is leaving will do a
close out evaluation for his/her employees prior to leaving.
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Steps to complete the annual performance evaluation procedure:
Step 1: Notice to department heads: human resources will notify department
heads 30 days prior to when performance evaluations are due for full time and part
time regular employees in their department. Managers/supervisors have 30 days to
complete the performance evaluations, obtain signature and provide the original
the human resources office for filling in the employees personnel file .The
supervisor shall also retain a computer copy/file copy for the midyear review
process. Human resources will remind supervisors to schedule probationary
evaluations on their calendar.
Step 2: Blank performance evaluation forms: managers/supervisors obtain the
performance evaluation forms.
Step3: Review job description; review the employees job description to see if any
changes are necessary. If there are increased responsibilities /scope of work or a
change in qualifications forward your edits to human resources for review. Minor
differences in workload or added assignment that are industry or technology
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changes do not require a change to the job description. (Individual employees do
not amend their job descriptions; this task is for the manager)
Step 4: Self evaluation form: provide a copy of the self evaluation form to the
employee.
If the employee does not want to complete the form, he/she shall check the box
and sign at the bottom of the form and return it to the supervisors . This completed
form is used as a tool for discussion while the supervisors is completing the
employees evaluation .
Step 5: Complete the performance evaluation rating forms: The managers
/supervisors complete each section in performance evaluation forms (page 2-
3plus). If a section does not apply note N/A for not applicable. Written comments
are required and should include examples that support the rating the specific job
element. Section 1to 3(Technical knowlwdge, customer service and
quality/quantity of work) apply to all positions. For section 4(Attendance), the
supervisors should review the employees attendance record, scheduled time away
from the job and use of breaks. Section5 (Safety and Risk management) applies to
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all jobs and should include notice of any accident, injuries, equipments usage or
other safety related issues. Section6 is only for department heads, managers,
supervisors and lead workers. Next, complete the section work plan for the next
rating period completion date. This list achievable goals and projects as well as
areas to improve upon. Next, complete the training and development section. The
raters the complete the summary worksheet cover pages for the evaluation form.
This is done last and is and over all rating considering all the rating sectors.
The performance goal forms(optional based on department head discussion is a
departmental tool used during the midyear review o monitor progress, completion
date or makes comments concerning the goals. keep goals to a realistic number (3
to 5) and ones that are achievable we all have a tendency to put down more goals
that we can reasonably achieve.
Also some employees in entry level job may have only 1 or 2 goals or a training
course to complete during the review period the supervisor should used their
judgment and discussion their employees to arrive at goals for the work
Plan .
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Step 6: Unacceptable or Improvement Needed Rating: If y rate an employee
with a 1 Unacceptable or 2 Improvement needed, you must complete the
performance improvement plan form. Have this completed form reviewed by the
department head and Human Resources prior to presenting it to the employee. This
form is used to document performance and behavior problems that need corrective
action. Documentation is critical for this type of rating.
Note in the event the employee does not improve, the documentation is important
for corrective action. The notice of Improvement Needed or unacceptable
rating must include:
The problem areas of performance that are determined to be unacceptable.
Identify performance standards that must be achieved to meet acceptable
standards.
Provide a reasonable period of time demonstrate improved performance.
Provide assistance to help them achieve the performance standards (training,
counseling and coaching, closer supervision, feedback).
Communicate with employee of the consequences if their performance does not
improve and provide a deadline, such as 30-90 days for a follow up review.
However, this time line does not preclude immediate disciplinary action at any
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time by department head if the employees` performance worsens during the
rating period.
A rating of #1 shall be reviewed and approved by the department head before
being communicated to the employee.
Step 7: Mid-year Review: Mid-point through the 12-month rating period, the
manager or supervisor will meet with the employee to review his/her progress.
This does not require any new information to be prepared, merely review their
performance, goals and deadlines with the employee. At this step, you may
adjust the deadlines as necessary.
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Standard of Performance
Standards of performance are written statement describing how well a job should
be performed. Performance standards are developed collaboratively with
employees, whenever possible and explained to new employees during the first
month on the job.
Job Description & Essential Functions
Strategic Plan & Annual Goals
Standards of Performance
Observation &Feedback
Performance Appraisal
Performance Development
The performance standard provides a benchmark against which to evaluate work
performance. While the job description describes the essential functions and the
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tasks to be done, the performance standard defines how well each function or task
must be performed in order to meet or exceed expectations. The University also
establishes general criteria for evaluating work performance.
Standards of performance are usually:
Developed in collaboration with the employees who do the tasks or
functions.
Explained to new employees within the first month on the job.
The rating describes the level of performance of the individual employee compared
to a job description and standard of performance.
E =Exceptional : Performance well exceeds expectations and is consistently
outstanding.
A = Above Expectation: Performance is consistently beyond expectations.
S = Solid Performance: Performance consistently fulfills expectations and at times
exceeds them.
I = Improvement Needed: Performance does not consistently meet expectation.
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U = Unsatisfactory: Performance is consistently below expectations. Deficiencies
should be addressed as noted in the performance appraisal.
As performance manager, you will use these criteria to rate the employees`
performance. At the beginning of the appraisal period, review these ratings and the
performance standards for each position, which reports to you so that you can
fairly evaluate the employees` performance.
Performance Standards a answer the question, How will the employees and
the performance manager know when the employee is meeting or exceeding
expectation for his or her position?
Guidelines for Performance Standards
Keep in mind the following guidelines when writing your performance
standards:
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Performance standards should be related to the employees` assigned work
and job requirements.
Your reporting system should be adequate to measure and report any
quantitative data you list.
Quantifiable measures may not apply to all functions. Describe in clear and
specific terms the characteristics of performance quality that are verifiable
and that would meet or exceed expectations.
Accomplishment of organizational objectives should be included where
appropriate, such as cost-control, improved efficiency, productivity, project
completion, process redesign or public service.
Checking Your Standards
After you have written your performance standards, check them against the
questions in the following list:
Are the standards realistic? Standards should be attainable and consistent
with what is necessary to get the job done. Standards for performance, which
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meets expectations, represent the minimum acceptable level of performance
for all employees in that position.
Are standards specific? Standards should tell an employee exactly which
specific action and results he or she is expected to accomplish.
Are the standards based on measurable data, observation, or verifiable
information? Performance can be measured in terms of timeliness, cost,
quality and quantity.
Are the standards consistent with organizational goals? Standards link
individual (and team) performance to organizational goals and should be
consistent with these goals.
Are the standards challenging? Standards may describe performance that
exceeds expectations. Recognizing performance that is above expectation or
outstanding is crucial to motivating employee.
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Are the standards clear and understandable? The employees whose work is
to be evaluated on the basis of the standards should understand them.
Standards should use the language of the job.
Are the standards dynamic? As organizational goals, technologies,
operations or experiences change, standards should evolve.
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Use of Books and Software for Performance Appraisals
There are number of low cost paperbacks that can b handed out to the managerial
staff to help them with their appraisals.
Since the advent o the use of computers, a number of educational organizations are
now using Performance Appraisal software.
Performance now Enterprise is a software tool for logging events, tracking goals,
providing effective feedback and writing employee reviews that maximize the
potential of your team. Flexible enough to adapt to your present review system,
Performance now helps you become a better manager and get the best from your
employees. For a little more upscale package Performance Impact Workplace is
easy to use to set goals for employees, but are having trouble following up on those
goals.
Other software such as The Administrative Observer for school systems is one of
the more configurable stand-alone database package, with an intuitive graphic
interface, geared towards the business environment is MINDSOLVE (MVP). MVP
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is designed as an enterprise level performance management software, incorporating
appraisal, development resources, 360 degree feedback, performance logging, etc.
While the use of configurable software based tools are certainty making life easier,
the use of such tools are much more valuable.
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Chapter 4.
Introduction of Insurance
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INTRODUCTION
The Insurance sector inIndiagoverned by Insurance Act, 1938, the Life Insurance
Corporation Act, 1956 and General Insurance Business (Nationalisation) Act,
1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and
other related Acts. With such a large population and the untapped market area of
this population Insurance happens to be a very big opportunity inIndia. Today it
stands as a business growing at the rate of 15-20 per cent annually. Together with
banking services, it adds about 7 per cent to the countrys GDP .In spite of all this
growth the statistics of the penetration of the insurance in the country is very poor.
Nearly 80% of Indian populations are without Life insurance cover and the Health
insurance. This is an indicator that growth potential for the insurance sector is
immense inIndia. It was due to this immense growth that the regulations were
introduced in the insurance sector and in continuation MalhotraCommitteewas
constituted by the government in 1993 to examine the various aspects of the
industry. The key element of the reform process was Participation of overseas
insurance companies with 26% capital. Creating a more efficient and competitive
financial system suitable for the requirements of the economy was the main idea
behind this reform.
Since then the insurance industry has gone through many sea changes .The
competition LIC started facing from these companies were threatening to the
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existence of LIC .since the liberalization of the industry the insurance industry has
never looked back and today stand as the one of the most competitive and
exploring industry in India. The entry of the private players and the increased use
of the new distribution are in the limelight today. The use of new distribution
techniques and the IT tools has increased the scope of the industry in the longer
run.
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HISTORY OF INSURANCE SECTOR
The business of life insurance in India in its existing form started in India in the
year 1818 with the establishment of the Oriental Life Insurance Company
in Calcutta. Some of the important milestones in the life insurance business
in India are given in the table 1.
Table 1: milestones in the life insurance business in India
Year Milestones in the life insurance business in India
1912 The Indian Life Assurance Companies Act enacted as the first
statute to regulate the life insurance business
1928 The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both life and
non-life insurance businesses
1938 Earlier legislation consolidated and amended to by the Insurance
Act with the objective of protecting the interests of the insuring
public.
1956 245 Indian and foreign insurers and provident societies taken
over by the central government and nationalised. LIC formed by
an Act of Parliament, viz. LIC Act, 1956, with a capital
contribution of Rs. 5 crore from the Government of India.
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The General insurance business in India, on the other hand, can trace its roots to
the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British. Some of the important
milestones in the general insurance business in India are given in the table 2.
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Table 2: milestones in the general insurance business in India
Year Milestones in the general insurance business in India
1907 The Indian Mercantile Insurance Ltd. set up, the first company to
transact all classes of general insurance business
1957 General Insurance Council, a wing of the Insurance Association
of India, frames a code of conduct for ensuring fair conduct and
sound business practices
1968 The Insurance Act amended to regulate investments and set
minimum solvency margins and the Tariff Advisory Committee
set up.
1972 The General Insurance Business (Nationalisation) Act, 1972
nationalised the general insurance business in India with effect
from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz.
the National Insurance Company Ltd., the New India Assurance
Company Ltd., the Oriental Insurance Company Ltd. and the
United India Insurance Company Ltd. GIC incorporated as a
company.
Indian Insurance Market History
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Insurance has a long history in India. Life Insurance in its current form was
introduced in 1818 when Oriental Life Insurance Company began its operations
in India. General Insurance was however a comparatively late entrant in 1850
when Triton Insurance company set up its base in Kolkata. History of Insurance
in India can be broadly bifurcated into three eras: a) Pre Nationalisation b)
Nationalisation and c) Post Nationalisation. Life Insurance was the first to be
nationalized in 1956. Life Insurance Corporation of India was formed by
consolidating the operations of various insurance companies. General Insurance
followed suit and was nationalized in 1973. General Insurance Corporation
of India was set up as the controlling body with New India, United India, National
and Oriental as its subsidiaries. The process of opening up the insurance sector was
initiated against the background of Economic Reform process which commenced
from 1991. For this purpose Malhotra Committee was formed during this year who
submitted their report in 1994 and Insurance Regulatory Development Act (IRDA)
was passed in 1999. Resultantly Indian Insurance was opened for private
companies and Private Insurance Company effectively started operations from
2001.
Insurance Market- Present:
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The insurance sector was opened up for private participation four years ago. For
years now, the private players are active in the liberalized environment. The
insurance market have witnessed dynamic changes which includes presence of a
fairly large number of insurers both life and non-life segment. Most of the private
insurance companies have formed joint venture partnering well recognized foreign
players across the globe.
There are now 29 insurance companies operating in the Indian market 14 private
life insurers, nine private non-life insurers and six public sector companies. With
many more joint ventures in the offing, the insurance industry in India today stands
at a crossroads as competition intensifies and companies prepare survival strategies
in a detariffed scenario.
There is pressure from both within the country and outside on the Government to
increase the foreign direct investment (FDI) limit from the current 26% to 49%,
which would help JV partners to bring in funds for expansion.
There are opportunities in the pensions sector where regulations are being framed.
Less than 10 % of Indians above the age of 60 receive pensions. The IRDA has
issued the first licence for a standalone health company in the country as many
more players wait to enter. The health insurance sector has tremendous growth
potential, and as it matures and new players enter, product innovation and
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enhancement will increase. The deepening of the health database over time will
also allow players to develop and price products for larger segments of society.
State Insurers Continue To DominateThere may be room for many more
players in a large underinsured market like India with a population of over one
billion. But the reality is that the intense competition in the last five years has made
it difficult for new entrants to keep pace with the leaders and thereby failing to
make any impact in the market.
Also as the private sector controls over 26.18% of the life insurance market and
over 26.53% of the non-life market, the public sector companies still call the shots.
The countrys largest life insurer, Life Insurance Corporation of India (LIC), had a
share of 74.82% in new business premium income in November 2005.
Similarly, the four public-sector non-life insurers New India Assurance, National
Insurance, Oriental Insurance and United India Insurance had a combined market
share of 73.47% as of October 2005. ICICI Prudential Life Insurance Company
continues to lead the private sector with a 7.26% market share in terms of fresh
premium, whereas ICICI Lombard General Insurance Company is the leader
among the private non-life players with a 8.11% market share. ICICI Lombard has
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focused on growing the market for general insurance products and increasing
penetration within existing customers through product innovation and distribution.
Reaching Out To CustomersNo doubt, the customer profile in the insurance
industry is changing with the introduction of large number of divergent
intermediaries such as brokers, corporate agents, and bancassurance.
The industry now deals with customers who know what they want and when, and
are more demanding in terms of better service and speedier responses. With the
industry all set to move to a detariffed regime by 2007, there will be considerable
improvement in customer service levels, product innovation and newer standards
of underwriting.
Intense Competition In a de-tariffed environment, competition will manifest itself
in prices, products, underwriting criteria, innovative sales methods and
creditworthiness. Insurance companies will vie with each other to capture market
share through better pricing and client segmentation.
The battle has so far been fought in the big urban cities, but in the next few years,
increased competition will drive insurers to rural and semi-urban markets.
Global Standards While the world is eyeing India for growth and expansion,
Indian companies are becoming increasingly world class. Take the case of LIC,
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which has set its sight on becoming a major global player following a Rs280-crore
investment from the Indian government. The company now operates
in Mauritius, Fiji, the UK, Sri Lanka, Nepal and will soon start operations in Saudi
Arabia. It also plans to venture into the African and Asia-Pacific regions in 2006.
The year 2005 was a testing phase for the general insurance industry with a series
of catastrophes hitting the Indian sub-continent.
However, with robust reinsurance programmes in place, insurers have successfully
managed to tide over the crisis without any adverse impact on their balance sheets.
With life insurance premiums being just 2.5% of GDP and general insurance
premiums being 0.65% of GDP, the opportunities in the Indian market place is
immense. The next five years will be challenging but those that can build scale and
market share will survive and prosper.
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Chapter 6.
Research Methodology
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a) Statement of the Problem
Every business organization large or small spend huge amount of money on Human
Resource. It is necessary therefore to find out how they are performing in order to
design their future of the organization. It may be to develop the employees or to
correct the employees or to utilize employees strength.
This study is directed towards probing Performance Appraisal system as tool for
employees at BAJAJ ALLIANZ LIFE INSURANCE.
b) Types of Research-
There is social research in a HR Survey with particular reference to Performance
Appraisal as a System for employees at BAJAJ ALLIANZ LIFE INSURANCE
Sample Design:
It is random sampling techniques where the samples were designed based on
the nature of work, qualification, experience, etc.
Sample Size:
20 Employees Respondents
Tool for collection of Data:
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Structured questionnaire is used to collect the data. Copy of questionnaire is
placed at the Annexure of the project report.
Method of Collecting Data:
The questionnaires were floated to respondents through Researcher where
the data was collected and returned by HR Unit.
Method of Analysis:
1. The collected data were tabulated
2. Percentage of respond was worked out
3. Analysis is based on percentage frequency
4. Weight age is given to high percentage in response factor
5. Evaluation is made based on the analysis and the presumptions
inherences are used, where every data is ambiguous. Definitive
evaluation is made every data is clear.
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Chapter 7.
Data Analysis
&
Interpretation
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Findings, Analysis and Discussion-
Present Appraisal System Feedback
In this system, employees and managers set expectations and prepare plans for
work and development at the beginning of the year. The key responsibilities and
results (KRRs) dimensions and behavioral expectations, and the criteria/standards
for the performance measurement are prescribed and clarified. Although they may
be expressed differently for different jobs, the basic areas of measurement for all
jobs are quality, quantity, cost and timeliness. To ensure that all employees receive
feedback for maintaining or improving productivity, two documented semi-annual
feedback sessions are required. The supervisor uses discretion to schedule informal
feedback based on individual employees needs.
Although a case study with a limited number of respondents cannot be widely
generalized, the results should be quite interesting to mangers who would like to
think critically and seek ways to improve performance appraisal systems in
organizations
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Part A: Personal Data
1. To carry out any Project Study personal data needs detailed analysis because
it is basic foundation to understand correct profile of respondent. This shows
their knowledge, mental status and maturity. Educational background to
understand the topic of the study so that they can be related age.
Age Group No. of Respondents Percentage
21-30 14 70
31-40 2 10
41-50 4 20Total 20 100
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From the above data indicates that 70% of respondents are of 21-30 age group,
10% of respondents are of 31-40 age group and 20% of respondents are of 41-50
age group.
Gender-
Gender No. of Respondents Percentage
Male 12 60
Female 8 40Total 20 100
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The above data indicates that 60% of respondents are male, rest 40% of
respondents are female.
Qualification-
Qualification No. of Respondents PercentageDiploma 2 10
Graduate 6 30
Post Graduate 12 60
Total 20 100
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In the above data, it is seen that 10% of respondents are diploma in qualifications,
30% of respondents are graduates and rest 60% of respondents are post graduate.
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Designation-
Designation No. of Respondents Percentage
Manager 4 20Officer 10 50
Junior Officer 4 20
VP 2 10
Total 20 100
From the above data, it is seen that 20% of respondents are Managerial post, 50%
of respondents are at officer post, 20% of respondents are junior officer and 10%
of respondents are VP in post.
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Part B: Research Data
1. Is the Performance Appraisal process user friendly?
a. Yes b. No
S.No. Options No. of
Respondents
Percentage
1 Yes 16 80
2 No 4 20Total 20 100
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Respondents and Responses-
80% of the respondents are agreed to the above statement
It is user-friendly and easily accessible within the organization. It also
provides a consolidated view.
It captures an individuals strengths, improvement areas and also captures
training courses recommended.
It gives an opportunity to the employee to accept or decline.
It is very flexible.
20% of the respondents are disagreed to the statement
It is a very easier tool, where employee can fill in short time.
As an employee need to know what is required of them in order to
work effectively by this.
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2. Is Performance Appraisal conducted on time?
a. Yes b. No
S.No. Options No. of
Respondents
Percentage
1 Yes 12 60
2 No 8 40
Total 20 100
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Respondents & Responses-
60% of the respondents agreed to the above statement
Performance Appraisal process will start on time.
There is a fixed schedule to meet listed in detail at the beginning of the
process.
Process will be conducted as per the appraisal period.
40% of the respondents disagreed to the statement
Process end will take long time and unintentionally however measuring
quality
issues do cause delays.
Process Cycle should be reduced because there is always delay due to the
respective owners of the employee.
The steps involved in the process are very long as a result.
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3. Does Performance Appraisal process assess fairly?
a. Yes b. No
S.No. Options No. of
Respondents
Percentage
1 Yes 16 80
2 No 4 20
Total 20 100
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Respondents & Responses-
80% of the respondents agreed to above statement
The process assessment is fair and justified with business units.
It is objective process.
Measuring an individual is fair.
The metrics are adequate.
20% of the respondents disagreed to the statement
Across Business units does not yield right results.
There are some issues with performing employees not getting proper
result of the appraisal.
360 feedback systems should be there.
There is an element of subjectivity. The presence of Appraiser and
reviewer is aimed at eliminating the subjectivity.
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4. Is Performance Appraisal process simple to understand?
a. Yes b. No
S.No. Options No. of
Respondents
Percentage
1 Yes 17 85
2 No 3 15
Total 20 100
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Respondents & Responses-
90% of the respondents agreed to the above statement
It is simple to understand and follow pre-process.
It clears to express as individual his strength and capacity.
It gives an opportunity to show case his achievement.
It helps to understand the required capacity to meet requirements.
10% of the respondents disagreed to the statements
A Performance Appraisal tool should be kept as simple as possible while
meeting objectives.
A Performance Appraisal tools should be based on assessment of work
quantity, quality, and knowledge of job but not personality.
Process cycle time has to be reduced.
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5. Do you receive an orientation on how to conduct appraisal process?
a. Yes b. No
S.No. Options No. of
Respondents
Percentage
1 Yes 12 60
2 No 8 40
Total 20 100
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Respondents & Responses-
60% of the respondents agreed to the above statement
Detailed orientation is given to all levels at the beginning of the process.
Various training programs are available and discussed with superiors.
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40% of the respondents disagreed to the statement
Sometimes process will be failed due to some internal problems after
getting orientated on the Performance Appraisal system.
6. How much time is spent in preparing for feedback session?
a- 1 hour. b- 2 hour
S.No. Options No. of
Respondents
Percentage
1 1 hour 8 40
2 2 hour 12 60
Total 20 100
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Respondents and Responses-
40% of the respondents agreed to 1 hour statement
More time will be spent if one employee worked under different
managers for different assignments.
It is necessary to know the earlier managers feedback on the employee
to assess properly.
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In the Performance Appraisal system no records/data are available of
confirmation appraisal and project end appraisal.
60% of the respondents agreed to 2 hours statement
Approximately 2 hours, 1 hour for collecting feedback and
brainstorming and 1 hour for filling Review.
1 hour need to have things documented on how an employee has been
appraised.
There different process and have their strengths or improvement plans
throughout the year.
Feedback session involved revision of individuals accomplishments
during the appraisal period. His/her strengths, improvement areas and
training & development.
7. In your opinion how is overall Performance Appraisal system in
BAJAJ ALLIANZ LIFE INSURANCE?
a. Excellent b- Good c- Average d- Poor
S.No. Options No. of
Respondents
Percentage
1 Excellent 10 50
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2 Good 6 30
3 Average 4 20
4 Poor - -
Total 20 100
The above data predicts that the present appraisal system status in the
company where 50% of the employees responded to be excellent, 30%
respondent to be good, and 20% responded as average i.e. just satisfied.
Thus the majority of respondents have viewed their opinion that the present
appraisal system is good.
8. a) Are you satisfied with the current Appraisal system?
a. Yes b. No
S.No. Options No. of Percentage
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Respondents
1 Yes 14 70
2 No 6 30
Total 20 100
Respondents and Responses-
70% of the respondents agreed to the above statement
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It is simple to understand and follow pre process.
It is clear to express as individual his strength and capacity.
It gives an opportunity to show case his achievement.
It helps us to understand the required capacity to meet requirements.
30% of the respondents disagreed to the statement
Suggested by some managers to have half yearly appraisal system.
Promotion, salary revisions can be dealt during annual appraisal.
Half yearly appraisal will help in motivating, keeping employees known
of peer strength and improvement areas.
Confirmation appraisal and project end appraisal process needs to be
automated.
In the process of performance appraisal cross business unit appraisal
process should be smoothened.
Performance Appraisal should be subject to regular evaluation and
review.
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8. b) If not then what are the areas need to be improved?
a. Time b. Process
S.No. Options No. of
Respondents
Percentage
1 Time 7 35
2 Process 13 65
Total 20 100
The above data predicts that 35% of the respondent need to change the
duration of PA system and rest of the 13 respondents i.e. 65% need to change
the process of performance appraisal.
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9. Do you feel any difficulty in handling them?
a. Yes b. No
S.No. Options No. of
Respondents
Percentage
1 Yes 4 20
2 No 16 80
Total 20 100
The above data indicates that 80% of the respondents feels no difficulty while
handling performance appraisal system while the rest of the 20% of the
respondent feels little difficulty.
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10. What other process can be included making the appraisal process much better?
a. MBO b. Critical Incident method c. Web based appraisal system
S.No. Options No. of
Respondents
Percentage
1 MBO 8 40
2 Critical Incident
Method
4 20
3 Web based
appraisal system
8 40
Total 20 100
The above data indicates that equal percentage of respondent need to add
MBO as well as Web based appraisal system in their organization i.e. 40%
and the rest 20% of other needs to include Critical incident Method.
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Present Appraisal System Satisfaction Level-
Particulars Respondents Percentage
Good 12 60Satisfactory 6 30
Poor 2 10
Total 20 100
The above data indicates the present appraisal system status in the company
where 60% of the employees responded to good, 30% responded to
satisfactory i.e. just satisfied and the remaining 10% are not satisfied and who
have not responded as poor.
Thus, the majority of the respondents have viewed their opinion that the
present appraisal system is good.
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Efficiency of the present appraisal system in employee development-
Particulars Respondents PercentageYes 16 80
No 4 20
Total 20 100
The above data shows that 80% respondents are accepting that Performance
Appraisal has aimed at development of the employee, and only 20% of them
disagreed to the present system.
Hence, most of the respondents are agree that Performance Appraisal is
aiming to the career development of the employee.
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Present Appraisal system in setting work targets-
Particulars Respondents PercentageYes 14 70
No 6 30
Total 20 100
The above data reveals that possibility of setting targets for the different jobs
they do under different department, 70% respondents have said yes for the
job they do. 30% respondents have said no for the qualitative and creative
jobs they do.
Therefore, majority of respondents have agreed the possibility of setting work
targets.
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The target for the job they do even though every job needs certain degree of
creativity which depends upon the nature of job.
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Actions taken after Performance Appraisal-
Particulars Respondents Percentage
Useful discussions 11 55No discussions 4 20
Only failure are
discussed
2 10
Genius Feedback is
given
3 15
Total 20 100
The above data shows actions taken after the Performance Appraisal by the
appraiser the management 55% respondents of them reported they take up
useful discussions on the evaluation and results, 4 of them i.e. 20% have
denied and says no discussion, 10% said only failures are discussed, no
discussion is made on achievement, 15% agreed that they get genius feedback
on evaluation.
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Thus, majority of respondents told they are useful discussions with appraiser
after performance appraisal.
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Availability of feedback in Performance Appraisal system-
Particulars Respondents Percentage
Yes 17 85No 3 15
Total 20 100
The above data distributes whether the present appraisal system is used in
getting the feedback from the employees, 85% respondents told the present
appraisal system helps in giving the feedback from the employees and only
15% respondents told the existing appraisal system is not helping in getting
proper feedback from the employees.
Therefore, majority of the respondents are accepting that the present
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appraisal system help in getting feedback from the employees.
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Chapter 8.
List of Findings
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Key findings-
The following key findings are found while performing HR survey for
identifying the impact of Performance Appraisal (PA) system:
BAJAJ ALLIANZ LIFE INSURANCE follows two types of Appraisal
process - Graphic Rating Scales and Behaviorally Anchored Rating Scaling
(BARS) which is user-friendly and easily accessible within the organization.
Feedback is given to the employees about their performance.
Promotions schemes exist in the organization according to the
employees performance.
It captures an individuals strengths, improvement areas & also captures
training courses recommended.
Performance Appraisal process will start on time and process will be
conducted as per the appraisal period.
There is a fixed schedule to meet listed in detail at beginning of the process.
The process assessment is fair and justified with business units.
It is objective process, measuring an individual is fair but the metrics are
inadequate.
Across business units does not yield right results.
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There are some issues with performing employees not getting proper result
of the appraisal.
Process is clear to express as an individual his strengths and capacity.
It gives an opportunity to show case his achievement.
It helps to understand the required capacity to meet requirements.
A Performance Appraisal system tools should be based on assessment of
work performance not personality.
A Performance Appraisal system tools should be kept as simple as possible
while meeting objectives.
Detailed orientation will be given at all level at beginning of the
performance
appraisal process.
Various training programs are available and discussed with superiors.
Sometimes process will be failed due to some internal problem after getting
orientated on the performance appraisal system.
Feedback session involved revisions of individuals accomplishments during
the appraisal period. His/her strengths, improvement areas and training and
development.
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More time will be spent if one employee worked under different managers
for assignments.
It is necessary to now the earlier managers feedback on the employee to
assess properly.
In Performance Appraisal includes Quantitative and qualitative measures.
It will clarify organizational goals and expectations.
It provides a mechanism for improving communication between workers and
superiors.
It will decide upon future work requirements and objectives.
By this employee can discuss ideas, comments and suggestions.
Develop an action plan for indentifying strategies which will make it
possible for the employees to achieve the objective discussed.
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Performance Appraisal should be developed and implemented in
consultation with employees and superiors.
Performance Appraisal should operate equitable throughout the
organization.
Promotions, salary revisions can be dealt during annual appraisal.
Group work and team work exist in an organization.
Majority of the executives give reasons for not completing their targets.
Review and reset of the task is not made uniformly.
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Chapter 9.
Conclusion
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Conclusions-
Most of the time Performance Appraisal (PA) for determining compensation
increases, training need identification and for promotions. The Performance
Appraisal has delinked itself from being an instrument of evaluating performance
in the organization. Application of performance and bringing about better
performance management practices that enables organization to improve their
performance and bring in a performance driven culture is the need of the hour
rather performance appraisal only.
No Doubt without the commitment of the top management it would just be very
difficult to bring this sort of change. This in fact calls for a cultural change where
in emphasis is not only given to the Outcome or the end result but also on the
process and effort made to achieve the result. While discussing of the process &
effort we need to focus on the leadership style, his approach of consulting others,
his ability to learn, his approach as a team member, his effort in planning his days
and week, and his overall orientation for subordinates development. All this really
calls for a different ball games wherein the concerned supervisors are able to
emphasize with his sub-ordinates and is really above to understand his emotional
world.
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In this era where every individual is competing with each other and where very
tight schedules are drawn without much scope for slippages, there is every
probability that conflicts are going to become a common affair. As such is has
become all the more important that a supervisor makes all out effort to understand
emotional world of the sub-ordinate in terms of his hindering and facilitating
factors in terms of achieving his goals, what help the person growth and his own
ambition in the next 3-4 years, what is happening on his family front.
All this shall only happen if the sub-ordinate is able to see value and a genuine
concern in all this. For this what can be done is that once in a month an effort can
be made by the supervisor to sit his sub-ordinate to sit with his sub-ordinate and
have a face to face interaction in a non threatening atmosphere. What I have
personally observed that it charges the motivation level of an individual
considerably and in fact the employee makes all out effort to achieve the
Organizational goals.
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Chapter 10.
Recommendations
Limitations
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Recommendations
Though the employees feels that the company is fair in its appraisal process
but still has lot to in terms of making the appraisal process effective so that it
results in enhanced employee satisfaction and helps in retaining key
employees of the company.
The project leaders are dissatisfied with the way responsibilities are
distributed. The company needs to works in this area and bring more clarity
in the definitions of roles and responsibilities.
The Management should design training and development programs, career
plans for their employees on the basis of skills, knowledge needs.
Appreciate employees on the basis of employees work performance by
Promotion or increment in the salaries.
The performance culture of the company is another area where needs to be
done to improve the training regimen so that involvement of the employees
is enhanced which finally would build the morale and productivity would be
enhanced.
Employees have doubts about the rewards and feel that the system is not too
transparent. This in the long run unattended would reduce the morale and
may lead to attrition.
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Limitation of the Study-
Any research study will be restricted in scope by certain inherent limitations that
are participated by the choice of the research design. This study has the following
limitations:
Even though the survey was conducted for the employee performance
review the study does not match with the entire population in the company.
Because of time constraints, the sample size is restricted to 20, which may
not reflect the opinion of the entire population in the company.
Since study was restricted to samples. Sample may behave or give different
opinions at different times because of their psychological temperament. This
will affect the study.
Data could be collected from only 20 respondents as they were busy and
could not respond so well to the questionnaires.
Most of the organization hesitates to give confidential HR information
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which is needed for the study like expectation in salary, periodical
incremental percentage.
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QUESTIONAIRE
Part A:
Name of the Respondent : ______________________
Age : ______________________
Gender : ______________________
Qualification : ______________________
Designation : _______________________
Part B:
1. Is the Performance Appraisal process user friendly?
a. Yes b. No
2. Is Performance Appraisal conducted on time?
a. Yes b. No
3. Does Performance Appraisal process assess fairly?
a. Yes b. No
4. Is Performance Appraisal process is simple to understand?
a. Yes b. No
5. Do you receive an orientation on how to conduct appraisal process?
a. Yes b. No
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6. How much time is spent in preparing for feedback session?
a- 1 hour b- 2 hour
7. In your opinion how is overall performance appraisal system in
BAJAJ ALLIANZ LIFE INSURANCE?
a. Excellent b- Good c- Average d- Poor
8. a) Are you satisfied with the current appraisal system?
a. Yes b. No
b) If not then what are the areas need to be improved?
a. Time b. Process
9. Do you feel any difficulty in handling them?
a. Yes b. No
10. What other process can be included making the appraisal process much
better?
a. MBO b. Critical Incident Method c. Web based Method.
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Performance appraisal is very important for any company. It helps to make the
companies employee work better and show good result for the company too. This
helps the company to turn out to be profit making company.
As in BAJAJ ALLIANZ LIFE INSURANCE we are using the Rating scales or
Fair comparison method mostly to grade the performance of the employees. The
method used by the company is very fair and it is very easy to be adopted by the
personnels. This method is very convenient to be used. But the drawback
associated with the method is that it has now became an out dated method to be
used because there are fifty percent chances of biasness to occur for a particular
employee by the raters.
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Bibliography
1. V S P Rao, Human Resource Management, Anurag Jain for Excel Books,
New Delhi.
2. Dr. K Ashwathappa, Human Resource & Personal management, TATA
McGraw-Hill Publishing Company limited, New Delhi.
3. Prem Chadha, Performance Management
4. Google Engine Search
5. www.appraisals.naukrihub.com
6. www.performance-appraisal.com
7. Wikipedia -An Encyclopedia
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