COMPANY PROFILE

Mission: To become a responsible customer focused market leader. We s t i l l s t r ive to

understand the insurance needs of the consumers and t ranslate i t into affordable products that

del iver va lue for money.

Vision:

To be the f i rs t choice insurer for customers.

To be the preferred employee for s taff in the insurance industry.

To be the number one insurer for creat ing shareholder va lue.

Bajaj Al l ianze Life Insurance

Is the fas tes t growing priva te l i fe insurance company in India.

Currently have over 300000 sat isf ied customers .

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

finest customer service.

Bajaj All ianz General Insurance Company Limited is a joint venture be tween Bajaj Auto

Limited and Allianz AG of Germany. Both enjoy a reputat ion of expert ise, s tabi l i ty and

s trength.

Bajaj All ianz General Insurance received the Insurance Regulatory and Development

Authori ty (IRDA) cert if icate of Regis trat ion (R3) on May 2 n d , 2001 to conduct General

Insurance business ( including Heal th Insurance business) in India. The Company has an

authorized and paid up capi tal of Rs.110 crores . Baja j 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 s ta tus among the private

non-l i fe insurers . As on 31 s t March 2003, Baja j Al l ianze General Insurance mainta ined i ts

leadership posi t ion by garnering a premium income of Rs.300 Crores . Baja j Al l ianze a lso

became one of the few companies to make a profi t in i t s f i rs t ful l year of operat ions. Bajaj

Al l ianz made a prof i t a f ter tax of Rs.9.6 crores .

Bajaj All ianze today has a network of 40 off ices spread across the length and breadth of the

country. From Surat to Sl i l igur i and Jammu to Thiruvananthapuram, al l the 38 off ices are

interconnected with the Head Office at Pune .

In the f irs t half of the current f inancial year , 2004-05, Bajaj All ianz genera ted a premium

income of Rs.405 crores, achieving a growth of 84% and regis tered a 52% growth in Net

profi t of Rs. 20 Crores over the las t year for the same per iod. In the f inancial year 2003-04,

the premium earned was Rs.480 Crores , which is a jump of 60% and the profi t 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 opera t ion for over

55 years . As a promoter of Baja j All ianz Genera l Insurance Company Ltd. , Bajaj Auto has the

fol lowing to offer :

Vast dis t r ibution network.

Knowledge of Indian consumers.

Financial s t rength and s tabil i ty to suppor t the insurance business

All ianz AG, Germany

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

Founded in 1890 in Ber lin , Al l ianz is now present in more than 70 countr ies with over

177,000 employees. At the top of the international group is the holding company, All ianz

AG, with i ts head off ice in Munich.

Al l ianz Group provides i t s more than 60 mill ion customers worldwide with a comprehensive

range of services in the areas of

Property and casual ty insurance ,

Life and health insurance,

Asset management and banking.

In f iscal year 2005, Al l ianz 's total revenues amounted to some 100.9 bi l l ion euros. At the end

of 2005 All ianz Group had more than 1.26 t r i l l ion euros in assets under management . Of this ,

743 bi l l ion euros were asse ts managed for third part ies .

CORE COMPETENCIES AT BAJAJ ALLIANZ LIFE INSURANCE

Trust

Claims Phi losophy Customer Orientat ion

Experienced and Expert Servicing Team

Superior Technology

Unique Forms of Risk Cover

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 understand organizational goals, and to provide fast and effective

feedback. The users found the system easy to understand and use and were more satisfied with the overall

effectiveness of the system.

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

organizational development. Every organization has made it mandatory to have this appraisal done once in a year to

measure their employee performance. Hence, there should be well-defined appraisal procedure which is properly

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

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

allianz life insurance co. ltd, Sagar

The objective of the questionnaire was to obtain employees’ opinion on performance appraisal (PA) system in

their organisation.

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

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

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

Development Executive), their tenure with the organisation and total experience.

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

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

1-5 years experience, Business development executive who work experience of 0-1 years.

Second part of the questionnaire consisted of “quantitative and qualitative statements”. In order to

identify importance of the factors in determining.

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.

Performance Appraisal

What is Performance Appraisal?

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

employee in performing the task. Performance appraisal helps to identify those who are performing their

assigned tasks and those who are not and the reasons for such performance.”

Modern Appraisal:-

Performance appraisal may be defined as a structured formal interaction between a subordinate and supervision ,

that usually takes the form of a periodic interview (annual or semi annual), in which the work performance of the

subordinate is examined and discussed with a view to identifying weakness and strengths as well as opportunities

for improvement and skills development.

In many organizations but not all appraisal results are used, either directly or indirectly, to help determine reward

outcomes. That is the appraisal results are used to identify the better performing employees who should get the

majority of available merit pay increases, bonuses and promotions.

By the same token , appraisal results are used to identify the poorer performers who may require some form of

counseling , or in extreme cases ,demotion, dismissal or decreases in pay . (Organizations need to be aware of laws

in their country that might restrict their capacity 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 , transfer and layoff or termination of

services.

2. Determining training need for further improvement in performance.

3. Motivating employees by indicating their performance levels.

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

Goals of the Performance Appraisal System :-

For supervisors, the process of performance management is one of the most import- ant leadership

responsibilities. The performance appraisal system has three primary goals:-

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

and his/her supervisor.

2. To enhance employee development through performance feedback and through the identification of

future professional development activities.

3. To measure and document job performance as a basis for making 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- loyee’s job performance should seek input 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. It’s the responsibility of department/unit heads and supervisors to

prepare written performance appraisal and to conduct timely appraisal meetings. If a given supervisor should delay

or neglect to conduct an appraisal, the affected employee is encouraged to initiate such or may contact the

Department of Human resources for assistance.

The Performance Appraisal Process

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

Performance Standard and Goals

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.

Objectives ofPerformance Appraisal

Establish JobExpectations

Design anAppraisal Program

Appraise Performance

PerformanceInterview

Use Appraisal Data forAppropriate Purpose

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

accomplishment can be objectively measured.

Reasonable: - Goals and objectives which are too high or rigid may actually inhibited an employee`s

performance. Individuals may become discouraged and give up if perceive expectations to be

unattainable. Goals and objectives should be reasonable given time frames, circumstances and

departmental/unit expectations.

Time frame: - A specific period of time for accomplishment should be identified with each goals and

objectives.

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.

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 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.

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 evaluated.

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 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.

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.

INTRODUCTION

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and

General Insurance Business (Nationalisation) Act, 1972, Insurance Regulatory and Development Authority (IRDA)

Act, 1999 and other related Acts. With such a large population and the untapped market area of this population

Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20

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

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

populations are without Life insurance cover and the Health insurance. This is an indicator that growth potential for

the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in

the insurance sector and in continuation “Malhotra Committee” was constituted by the government in 1993 to

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

insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the

requirements of the economy was the main idea behind this reform.

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

these companies were threatening to the existence of LIC .since the liberalization of the industry the insurance

industry has never looked back and today stand as the one of the most competitive and exploring industry in India.

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

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

HISTORY OF INSURANCE SECTOR

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

the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business

in India are given in the table 1.

 

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

 

Year Milestones in the life insurance business in India

 

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

insurance business

1928 The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses

1938 Earlier legislation consolidated and amended to by the Insurance Act with the objective

of protecting the interests of the insuring public.

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

government and 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.

 

 

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.

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

Year Milestones in the general insurance business in India

 

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

general insurance business

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

of conduct for ensuring fair conduct and sound business practices

1968 The Insurance Act amended to regulate investments and set minimum solvency margins

and the Tariff Advisory Committee set up.

1972 The General Insurance Business (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

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:

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 enhancement will increase. The deepening of the health database over

time will also allow players to develop and price products for larger segments of society.

State Insurers Continue To Dominate There may be room for many more players in a large underinsured market

like India with a population of over one billion. But the reality is that the intense competition in the last five years

has made it difficult for new entrants to keep pace with the leaders and thereby failing to make any impact in the

market.

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

the public sector companies still call the shots.

The country’s largest life insurer, Life Insurance Corporation of India (LIC), had a share of 74.82% in new business

premium income in November 2005.

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

and United India Insurance – had a combined market share of 73.47% as of October 2005. ICICI Prudential Life

Insurance Company continues to lead the private sector with a 7.26% market share in terms of fresh premium,

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

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

penetration within existing customers through product innovation and distribution.

Reaching Out To Customers No doubt, the customer profile in the insurance industry is changing with the

introduction of large number of divergent intermediaries such as brokers, corporate agents, and 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, 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.

Research Methodology

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 employee’s strength.

This study is directed towards probing Performance Appraisal system of BAJAJ ALLIANZ LIFE INSURANCE.

b) Types of Research-

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

ALLIANZ LIFE INSURANCE

Sample Design:

It is random sampling techniques where the samples were designed based on the nature of work,

qualification, experience, etc.

Sample Size:

20 Employees Respondents

Tool for collection of Data:

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

project report.

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.

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

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 Percentage21-30 14 7031-40 2 1041-50 4 20Total 20 100

From the above data indicates that 70% of respondents are of 21-30 age group, 10% of respondents are of 31-40 age

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

Gender-

Gender No. of Respondents PercentageMale 12 60

Female 8 40Total 20 100

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

Qualification-

Qualification No. of Respondents PercentageDiploma 2 10Graduate 6 30

Post Graduate 12 60Total 20 100

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

and rest 60% of respondents are post graduate.

Designation-

Designation No. of Respondents PercentageManager 4 20Officer 10 50

Junior Officer 4 20VP 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.

Part B: Research Data

1. Is the Performance Appraisal process user friendly?

a. Yes b. No

S.No. Options No. of Respondents Percentage

1 Yes 16 80

2 No 4 20

Total 20 100

Respondents and Responses-

80% of the respondents are agreed to the above statement

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

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

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

It is very flexible.

20% of the respondents are disagreed to the statement

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

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

work effectively by this.

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

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.

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

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.

Actions taken after Performance Appraisal-

Particulars Respondents Percentage

Useful discussions 11 55

No discussions 4 20

Only failure are discussed 2 10

Genius Feedback is given 3 15

Total 20 100

The above data shows actions taken after the Performance Appraisal by the appraiser the management 55%

respondents of them reported they take up useful discussions on the evaluation and results, 4 of them i.e. 20%

have denied and says no discussion, 10% said only failures are discussed, no discussion is made on

achievement, 15% agreed that they get genius feedback on evaluation.

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

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.

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

Performance Appraisal process will start on time and process will be conducted as per the appraisal period.

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

The process assessment is fair and justified with business units.

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

Across business units does not yield right results.

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

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

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 individual’s accomplishments during the appraisal period. His/her

strengths, improvement areas and training and development.

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

It is necessary to now the earlier manager’s feedback

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.

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.

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.

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 which is needed for the study like

expectation in salary, periodical incremental percentage.

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

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

out to be profit making company.

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

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

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

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

out dated method to be used because there are fifty percent chances of biasness to occur for a

particular employee by the raters.

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

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

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

choice method” also to rate the performance, which affected the companies working to a great

extent.

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

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

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

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

method adopted by them for better results and employee satisfaction.

Bibliography1. 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