performance apprisal for mba hrm

1

PERFORMANCE MANAGEMENT SYSTEM IN VODAFONE ESSAR

SPACETEL LIMITED

A PROJECT REPORT

Under the guidance of

MS BHUBASMITA BASUMATARY

Submitted by

RITURANI KHOUND

[ROLL NO 510924628]

in partial fulfillment o f the requirement

for the award of the degree

Of

MBA

IN

Human Resource Management

November 2010

2

Acknowledgement: THE HELP AND GUIDANCE OF THE FOLLOWING

SOURCES IS ACKNOWLEDGED IN PREPARATION OF THIS PROJECT.

1. VODAFONE ESSAR SPACETEL LIMITED WEBSITE

2. COLLEAGUES’ OF VODAFONE ESSAR SPACETEL LIMITED FOR

FEEDBACK.

3. WORLD WIDE WEB IN GENERAL

3

Bonafide Certificate:

BONAFIDE CERTIFICATE

Certified that this project report titled “PERFORMANCE MANAGEMENT

SYSTEM IN VODAFONE ESSAR SPACETEL LIMITED” is the bonafide work

of “RITURANI KHOUND” [ROLL NO 510924628] who carried out the project

work under my supervision.

SIGNATURE BISWAPRIYA SYAM HEAD OF THE DEPARTMENT MANAGEMENT DEPARTMENT IFUTURE COLLEGE OF TECH AND MGT CARE BLDG, MALIGOAN GUWAHATI-11

SIGNATURE BHUBASMITA BASUMATARY FACULTY IN CHARGE MANAGEMENT DEPARTMENT IFUTURE COLLEGE OF TECH AND MGT CARE BLDG, MALIGOAN GUWAHATI-11

4

Executive Summary:

Performance Management System as a yard stick for measuring the contribution of

an employee as an individual as well as in a team in an organization has varying

levels of acceptance both in terms of perception as well as utility. The target

population (viz assesses) view it differently vis a vis its efficacy. A reporting

officer without proper understanding of the concepts of PMS may end up

jeopardising the career of a promising employee because of personal issues.

Similarly he may elevate a not so deserving employee because of his fondness.

There has been a consistent approach to develop a Performance Management

System that is objective, fair and positive in outlook. The objective of carrying out

a survey on PMS among Interact employees was to gain feedback on various

aspects of PMS in vogue in Vodafone Essar Spacetel Limited.

The study revealed that majority of the respondents was relatively aware of the

purpose, yardstick and technique of PMS in Vodafone Essar Spacetel Limited .

However, among the respondents the satisfaction level was 26%, 44%

respondents were not sure and 30% were dissatisfied. So, overall people wanted a

change in the system. An overwhelming majority (82%) of the respondents felt that

personal bias creeps in while apprising an employee.

In view of the findings it is desirable that PMS should be a continuous process.

The system should be objective in nature free of any biases. An attempt should be

made to find out the hidden potential of an individual and encourage his or her

development. The PMS should be devised in such a manner that it contributes to

efficacy, development and growth of the organization.

5

TABLE OF CONTENTS

CNo. TITLE ................................................................................... PAGE NO.

1. INTRODUCTION .............................................................................. 13

2. COMPANY PROFILE ...................................................................... 17

3. BRIEF ON PERFORMANCE .......................................................... 32

4. RATIONALE OF THE STUDY ....................................................... 61

5. OBJECTIVES OF THE STUDY ...................................................... 80

6. FINDINGS AND ANALYSIS ........................................................... 88

7. LIMITATIONS OF THE STUDY ................................................... 96

6

List of Tables

Table 3.1: Band Structure

Band Designations

J Management Trainee

I Executive, Senior Executive

H Assistant Manager, Deputy Manager

G Manager, Senior Manager

F DGM,GM,AVP,VP

Table 3.2: PMS Calendar

1 Issue of PMS forms in portal my world

16th to 20th August

HR Department

2 Upload of KPA by employees 21st to 25th August Employee

3 Reporting manager to approve the KPA uploaded by employee

30th August Reporting Officer & Reviewer

5 Mid Year Performance Review by employee in My World portal

1st to 10th Oct Employee

6 Reporting manager puts his ratings & comments against the KPA uploaded by employee

15th to 17th Oct Reporting Officer & Reviewer

9 Annual Performance Review by employee in My World portal

15th March to 31st March

Employee

10 Reporting manager puts his ratings & comments against the KPA uploaded by employee

1st April to 15th April

Reporting Officer & Reviewer

11 Normalization of PMS 16th to 20th April Normalization Committee

12 Feedback discussion between Employee & Manager after Mid Year Review

1st May to 25th May


7

Table 6.1: Employees Opinion as to the Purpose of Performance Appraisal

Performance standards/yardsticks

Options Response

Yes 42

No 08

Table 6.2: Awareness of technique of Performance Appraisal being followed

at Vodafone Essar Spacetel Limited among Employees

Options Response

Yes 36

No 14

Table 6.3: Number of Employees being appraised during their service period

Options Response

Yes 50

No 0

Table 6.4: Employees’ opinion as to the present appraisal system

Options Responses (in %)

Fully Satisfied 2

Satisfied 24

Can’t Say 44

Dissatisfied 30

8

Table 6.5: Employee perception as to the frequency of appraisal

Options Response (in %)

Once During The Service Period 2

Continuous 92

Never 0

Can’t Say 6

Table 6.6: gap between two appraisal periods


Quarterly 20

Half Yearly 44

Yearly 36

Table 6.7: Performance Appraisal affects the productivity of the employees

+ Feedback 38 - Feedback 12

Neutral -

Table 6.8: Concern person to do the appraisal

Options Response ( in % )

Superior 24

Peer 0

Subordinate 0

Self Appraisal 8

Consultant 4

All of the above 48

Superior + Peer 16

9

Table 6.9: help in polishing skills and performance area


Yes 74

No 10

Somewhat 16

Table 6.10: personal bias creeps-in while appraising an employee


Yes 82

No 18

Table 6.11: would employees like to review the current appraisal technique


Yes 72

No 4

Can’t Say 24

Table 6.12: Appropriate method of conducting the performance appraisal


Ranking Method 12

Paired Comparison 0

Critical Incidents 20

MBO 58

Assessment Centre 4

360 degree 6

10

Table 6.13: performance appraisal leads to identification of hidden potential


Yes 96

No 4

List of tables

1. Table3.1: Band Structure

2. Table3.2: PMS Calendar

3. Table 6.1: Employees Opinion as to the Purpose of Performance Appraisal

Performance standards/yardsticks.

4. Table 6.2: Awareness of technique of Performance Appraisal being followed

at Vodafone Essar Spacetel Limited among Employees.

5. Table 6.3: Number of Employees being appraised during their service

period.

6. Table 6.4: Employees’ opinion as to the present appraisal system.

7. Table 6.5: Employee perception as to the frequency of appraisal.

8. Table 6.6: gap between two appraisal periods.

9. Table 6.7: Performance Appraisal affects the productivity of the employees.

10. Table 6.8: Concern person to do the appraisal.

11. Table 6.9: help in polishing skills and performance area.

12. Table 6.10: personal bias creeps-in while appraising an employee.

13. Table 6.11: would employees like to review the current appraisal technique.

14. Table 6.12: Appropriate method of conducting the performance appraisal.

15. Table 6.13: performance appraisal leads to identification of hidden potential

11

List of Figures

Figure 2.1: Group Company wise market share as on 31/5/2010

12

Figure 3.1: Performance dialogue process

List of Figures

1. Figure 2.1: Group Company wise market share as on 31/5/2010

2. Figure 3.1: Performance dialogue process

13

CHAPTER NO 1

INTRODUCTION

14

PERFORMANCE APPRAISAL SYSTEM AT VODAFONE ESSAR

SPACETEL LIMITED

INTRODUCTION TO THE TOPIC

The service industry forms a backbone of social and economic development of a

region. It has emerged as the largest and fastest-growing sectors in the world

economy, making higher contributions to the global output and employment. Its

growth rate has been higher than that of agriculture and manufacturing sectors. It is

a large and most dynamic part of the Indian economy both in terms of employment

potential and contribution to national income. It covers a wide range of activities,

such as trading, transportation and communication, financial, real estate and

business services, as well as community, social and personal services.

Service sector is the lifeline for the social economic growth of a country. It is today

the largest and fastest growing sector globally contributing more to the global

output and employing more people than any other sector. The real reason for the

growth of the service sector is due to the increase in urbanization, privatization and

more demand for intermediate and final consumer services. Availability of quality

services is vital for the well being of the economy.

In alignment with the global trends, Indian service sector has witnessed a major

boom and is one of the major contributors to both employment and national

income in recent times. The activities under the purview of the service sector are

quite diverse. Trading, transportation and communication, financial, real estate and

business services, community, social and personal services come within the gambit

of the service industry.

15

An industry comprised of companies that primarily earn revenue through providing

intangible products and services. Service industry companies are involved in retail,

transport, distribution, food services, as well as other service-dominated

businesses.

Human Resource (or personnel) management, in the sense of getting things done

through people, is an essential part of every manager’s responsibility, but many

organizations find it advantageous to establish a specialist division to provide an

expert service dedicated to ensuring that the human resource function is performed

efficiently.

“People are our most valuable asset” is a cliché, which no member of any senior

management team would disagree with. Yet, the reality for many organizations are

that their people remain under valued, under trained and under utilized.

Performance Appraisal is the process of assessing the performance and progress of

an employee or a group of employees on a given job and his / their potential for

future development. It consists of all formal procedures used in the working

organizations to evaluate personalities, contributions and potentials of employees.

16

ROAD MAP

Managing human resources in today’s dynamic environment is becoming more and

more complex as well as important. Recognition of people as a valuable resource

in the organization has led to a better working environment, overall development

of employees, job security, etc

My research project deals with “Performance Management system in Vodafone

Essar Spacetel Limited”. In this report, I have studied &evaluated the performance

appraisal process as it is carried out in Vodafone Essar Spacetel Limited.

The report is divided in to Seven Chapters. The first chapter deals with

introduction. In the second chapter, I have given the background of my

Organisation i.e. Vodafone Essar Spacetel Limited. I have given a brief outline of

the various departments as well as their functions. The third chapter deals with the

Performance Management System in Vodafone Essar Spacetel Limited. The

chapter includes the various forms used in PMS in Vodafone Essar Spacetel

Limited. In the fourth chapter I have briefly discussed the rationale of the study.

The fifth chapter deals with the objectives. The sixth chapter is dedicated to the

findings and analysis. In the last chapter I have discussed about various limitations

as well as my suggestions.

17

CHAPTER NO 2

COMPANY PROFILE

18

COMPANY PROFILE

2.1 Organisation

Brand Name : Vodafone

Network : GSM

Network coverage : Pan India

Subscriber’s base : 111.47 million across India as at 31 July 2010

Market share : 23.81%

Vodafone was formed in 1984 as a subsidiary of Racal Electronics Plc. Then

known as Racal Telecom Limited, approximately 20% of the company’s capital

was offered to the public in October 1988. It was fully demerged from Racal

Electronics Plc and became an independent company in September 1991, at which

time it changed its name to Vodafone Group Plc.

Following its merger with AirTouch Communications, Inc. (‘AirTouch’), the

company changed its name to Vodafone AirTouch Plc on 29 June 1999 and

following approval by the shareholders in General Meeting, reverted to its former

name, Vodafone Group Plc, on 28 July 2000.

Vodafone is the world’s leading international mobile communication group

working in about 31 countries across 5 continents with nearly 41 network partners

347 million customers excluding paging customers, calculated on a proportionate

basis in accordance with the Company's percentage interest in these ventures. (As

at 30 June 2010) worldwide.

19

Vodafone Essar started its operations in India in 1994 and is under the Vodafone

Group. The company Vodafone Essar Limited has become one of the leading

companies in the telecom sector in India due to its high standard of services that it

provides to its customers.

Over the years, Vodafone Essar, under the Hutch brand, has been named the ‘Most

Respected Telecom Company’, the ‘Best Mobile Service in the country’ and the

‘Most Creative and Most Effective Advertiser of the Year’.

Vodafone offers both postpaid and prepaid GSM cellular mobile coverage all

across India and its hold is especially strong in the metropolitan cities. The

company Vodafone Essar Limited provides services like 2G, which are based on

1800 MHz and 900 MHz GSM digital technology.

Vodafone Essar Limited has received many awards over the years such as the Best

Mobile Service in India, Most Effective and Most Creative Advertiser of the Year,

and Most Respected Telecom Company.

The company Vodafone Essar Limited plans to spend more than Rs.250 crore in

launching low price cell phones in India. The company's objective in doing this is

to bring in millions of cheap mobile handsets from around the world into the

country and then sell them under the Vodafone brand name in order to maximize

sales. It is expected that the company Vodafone Essar Limited will price the

handsets in the range of Rs.666, Rs.999, and Rs.888. In this way the company

expects to attract new customers and thus expand its customer base.

20

Vodafone Essar plans to sell the low price handsets from its more than 4 lakhs

distribution outlets. The company will buy the low cost cell phones from the firm

ZTE that is located in China. The company ZTE will ship more than 10 million

low cost cell phones to India that will then be sold by the company Vodafone

Essar. Vodafone Essar Company also has plans to expand in the near future and for

this it is planning to take a loan overseas of around US$ 500 million. The company

Vodafone Essar Limited will use the money to expand the company’s network,

better its technology, and open more distribution centers. All these measures will

help to increase the customer base of the company Vodafone Essar.

Vodafone Essar is one of the topmost companies in the telecom sector in India and

is well known for the best quality of products and services offered to its customers.

And this is the reason that the customer base of the company Vodafone Essar

limited has been increasing at a very rapid pace. The company is planning to

launch low price cell phones in the country and also expand its operations. This is

sure to help the company Vodafone Essar to grow and prosper even more in the

future

2.2 Growth of Hutchison Essar (1992-2005)

In 1992 Hutchison Whampoa and its Indian business partner established a

company that in 1994 was awarded a licence to provide mobile

telecommunications services in Mumbai (formerly Bombay) and launched

commercial service as Hutchison Max in November 1995. Analjit Singh of Max

still holds 12% in company.

21

In Delhi, UP (E), Rajasthan and Haryana, ESSAR was the major partner. But later

Hutch took the majority Stake.

By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison

Whampoa had acquired interests in six mobile telecommunications operators

providing service in 13 of India's 23 licence areas and following the completion of

the acquisition of BPL that number increased to 16. In 2006, it announced the

acquisition of a company (Essar Spacetel — A subsidiary of Essar Group) that held

licence applications for the seven remaining licence areas.

In a country growing as fast as India, a strategic and well managed business plan is

critical to success. Initially, the company grew its business in the largest wireless

markets in India — in cities like Mumbai, Delhi and Kolkata. In these densely

populated urban areas it was able to establish a robust network, well known brand

and large distribution network -all vital to long-term success in India. Then it also

targeted business users and high-end post-paid customers which helped Hutchison

Essar to consistently generate a higher Average Revenue Per User ("ARPU") than

its competitors. By adopting this focused growth plan, it was able to establish

leading positions in India's largest markets providing the resources to expand its

footprint nationwide.

In February 2007, Hutchison Telecom announced that it had entered into a binding

agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct and

indirect equity and loan interests in Hutchison Essar Limited for a total cash

consideration (before costs, expenses and interests) of approximately US$11.1

billion or HK$87 billion. In the same year, the company entered into an agreement

with NTT DoCoMo to launch i-mode mobile Internet service in India.

22

1992: Hutchison Whampoa and Max Group established Hutchison Max

2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets

through ESSAR acquisition

2001: Won auction for licences to operate GSM services in Karnataka, Andhra

Pradesh and Chennai

2003: Acquired AirCel Digilink (ADIL — ESSAR Subsidiary) which operated in

Rajastan, Uttar Pradesh East and Haryana telecom circles and renamed it

under Hutch brand

2004: Launched in three additional telecom circles of India namely 'Punjab',

'Uttar Pradesh West' and 'West Bengal'

2005: Acquired BPL (Except Mumbai)- 3 Circles, another mobile service

provider in India

2008: Vodafone acquired the Licence in remaining 7 circles and has started its

pending operations in Madhya Pradesh/Chhattisgarh with its headquarters

at Malviya Nagar, Bhopal as well as in Orissa, Assam, North East and

Bihar

2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2.75G

network.

Hutch was often praised for its award winning advertisements which all follow a

clean, minimalist look. A recurrent theme is that its message Hello stands out

visibly though it uses only white letters on red background. Another recent

successful ad campaign in 2003 featured a pug named Cheeka following a boy

around in unlikely places, with the tagline, Wherever you go, our network follows.

The simple yet powerful advertisement campaigns won it many admirers.

23

2009: Vodafone launched Recharge Online

2009: Vodafone Essar - 1st Indian Telecom operator to receive the Payment Card

Industry Security Standard (PCI DSS) certification for its Mumbai

operations and launches unlimited SMS offer in Mumbai.

2010: Vodafone emerged as the most admired marketer in India. 2010: Vodafone

crossed 100 million subscribers in India.

2010: Vodafone picks Nokia Siemens, Ericsson as 3G partners

2.3 Market Share

Figure 2.1: Group Company wise market share as on 31/5/2010

India telecom market is mainly divided into two major segments namely, the Fixed

Service Provider (FSPs) and the cellular services. Fixed Service Provider network

24

comprises land lines, basic services, domestic and long distance call service. The

two major basic operators BSNL and MTNL comprise almost 90 % of the FSPs in

the country. Around 5 % are operated by private firms and are mostly scattered in

the urban areas. In most cases, the private basic service telephone operators cater to

offices, business firms, schools and the corporate sector.

In case of the cellular services, there are mainly two sub divisions: Code Division

Multiple Access (CDMA) and Global System for Mobile Communications (GSM).

In the GSM sector, the major players are Vodafone, Airtel, Idea Cellular, and

Aircel and so on. The national company BSNL also has its GSM service named

"Cellone" which has a major share in the semi urban and rural areas. The major

companies which dominate the CDMA scenario are Reliance Communications and

Tata Indicom. In both the sectors of cellular services, perfect competition exists

according to the demand supply chains.

The India telecom market ranks among the fastest growing industries in the

country. The improvement in the standard of living and the development of

infrastructure and connectivity are some of the mains reasons for the significant

growth of the telecom industry. The growth is expected to be more over the years.

The mobile services were commercially launched in August 1995 in India. In the

first 5-6 years, the average monthly subscribers were around 0.05 to 0.1 million

only and the total mobile subscribers base in December 2002 stood at 10.5 million.

The subscription base just grew exponentially, reaching to around 2 million per

month in the year 2003-04 and 2004-05. In May 2006, subscription crossed the 100

million mark. By September 200, it had doubled. The accelerating pace of this

industry in India is clear. This growth has occupied all predictions.

25

Presently, there are around 200 million telephone lines in India which make it the

third largest phone network in the world after China and the US. The average

growth rate of subscriber base is 61.41% in 2004, 35.48%t in 2005, and 40.17% in

2007; it may be increase to 50 to 70 per cent in the next coming years. Till year

2007 Bharti AirTel have most of cellular subscribers in India, AirTel have a total

42.70 million (23.09% of total) and BSNL have 32.05 million subscribers (17.24%

of total) which in a second rank, Reliance, and Vodafone also near about them on

end of 2007. Today, the telecom market in India enjoys a growth rate of around 45

% which is the highest in the whole world.

Total cellular services revenue in India is projected to grow at a compound annual

growth rate (CAGR) of 18% from 2008-12 to exceed $37 billion, according to a

report by Gartner, Inc. The India mobile subscriber base is set to exceed 737

million connections by 2012, growing at a CAGR of 21% in the same period. This

growth is poised to continue through the forecast period, and India is expected to

remain the world’s second largest wireless market after China in terms of mobile

connections.

Although cellular network were introduced in India 7 years later than in China,

India’s growth has overtaken China’s in the same time frame since inception. A

chart (Figure 2.1) taken from India-Cellular.com reflects the market share of the

main players as of May 2010

26

2.4 Departments

• HR & Administration

• Finance

• Customer Service

• Sales & Marketing

• Network

• Legal & Nodal

• IT

2.4.1 HR & Administration:

Major jobs of HRM Department:

• Strategic Human Resource Planning

• HR Auditing and Needs Assessments

• Workforce Planning

• Change Management

• Performance Management

• Total Compensation, Benefits & Rewards

• Industrial & employee Relation

Recruitment Secretariat

Concern for overall design and accomplishment of personnel recruitment

policy and criterion.

27

Personnel Admin Section

Concern for personnel selection, retention, promotion, termination and

disciplinary action.

Planning & Record Section:

Concern to upkeep and update personnel record with strict confidence and

manpower planning for forthcoming telecom project

Training & Vehicle Section

Concern for periodic education and training management. It is also concern

for vehicle operation, maintenanceand distribution.

Mgmt Devt & General Admin Section

Concern to deal staff benefit, trade union activity, building upkeep and

sanitation.

Performance Apprisal Section

Concern for maintaining the record of personnel performance appraisal

2.4.2 Finance

Major jobs of Finance Department:

• Financial planning & control

• Treasury management

• Budget preparation and budgetory control

28

• Revenue, interadministration and sharing accounting

• Preparing annual and quarterly financial statement

• Reporting to statutory and regulatory authority

• Fixed assets recording and management

• Inter branch accounting administration

• Corporate tax and vat filing

• Employees welfare management

• Procurement

Finance department consist of three sections:

Finance Department:

• Procurement Section

• Expenditure Section

• Cash & Bank Section

• Welfare Section

Revenue Department:

• Treasury Management Section

• Interadministration Accounting Section

• Revenue Section

Central Accounts Department:

• Financial Statement Section

29

• Branch Accounts Section

• Fixed Assets Section

• VAT & Tax Section

2.4.3 Customer Service

Customer Service department consist of three sections:

Call Center

• Receive the complains from the customer.

• Try to resolve he issues face the customer.

• Provide information regarding the product & services provided by the

company

• Out calling the customers relating to bill payment.

Activation

• Activate the SIMS

• Activate the services the customers

Quality

1. Inspects the quality of process of Customer Service & call center

agents

2. Report if there is a deviation from the processes of Customer service.

30

Complain Management

• Resolve the complains that the customer put forward over e-mail,

walk-in and call center.

2.4.4 Sales & Marketing

• To look into the sales (Primary, Secondary, Tertiary)

• To increase the connection net adds.

• To increase the revenue.

• To design the products.

• To look into the advertising activities.

2.4.5 Network

• To increase the network coverage.

• Troubleshooting of network related issues.

2.4.6 Legal & Nodal

Legal Section

Concern for all legal issues of the company and perform the legal advisory

role and advocacy.

31

Nodal Section

Concern for all issues of the company relating to TRAI and security agencies.

2.4.7 IT

• To support the organization with software

• To support the organization with IT hardware.

32

CHAPTER 3

BRIEF ON THE NEW PERFORMANCE MANAGEMENT SYSTEM

33

PERFORMANCE MANAGEMENT IN VODAFONE ESSAR SPACETEL

LIMITED

BRIEF ON THE NEW PERFORMANCE MANAGEMENT SYSTEM

The objective of the proposed PMS is to promote performance oriented culture, to

realign goal of an individual with the objective of the organization . to bring

transparency, objectivity and participative approach in evaluating the performance

of the executives .

As we continue to grow as an organization, we need to re-define our existing

systems and processes to keep pace with our business goals and objectives. The

new features of this year’s Performance Dialogue are as follows

• Simple & efficient process

• IT as an enabler

• Sharper performance differentiation & sharper descriptors (PIGEX)

• Renewed process flow - few sequential steps made parallel

• Compressed timelines

• Shorter Sign off process- retaining the rigour of approvals across levels

sans the bureaucracy

The Performance Dialogue has a NEW scale this year – PIGEX which will be

used to evaluate and assess your team’s overall performance. It is our endeavor to

34

create a high performance culture which supports the achievement of individual,

team and organizational goals.

Rating Scale & Descriptors PIGEX SCALE

X - Exceptional Performance: Shows outstanding performance against goals. This

person is performing exceptionally well above the expectations of the role.

Score 460 and above

E - Exceeding Expectations: Regularly exceeds goals. This is an individual who

regularly exceeds the expectations of the role.

Score 400 to 459

G - Good Performance: All goals met and occasionally exceeded. This is an

individual who requires minimum guidance.

Score 300 to 399.

I - Improvement Required: Most, but not all, goals achieved. This person may need

guidance and support to perform adequately in the role. Score 200 to 299

P - Poor Performance: Many Key goals not met. Performing well below

expectations and requirements of the job. Low level of performance is not due to

lack of clarity, opportunity or development. This level of performance is not

acceptable and signals real improvement is needed.

Score 0 to199

35

Ratings are a function of calibration at the function / circle / OpCo levels. The

distribution curve for the 2009-10 Performance Dialogue cycle will be as below:

X – 5% of employees

E – 15% of employees

G – 65% of employees

I – 10% of employees

P – 5% of employees

The PMS process consists of following stages :-

A. Performance Planning :- Setting goals / targets / Key performance areas on

mutually agreeable and after sufficient discussions between Reporting Officer

and the Executive.

The KPAs has to be - SMART (Specific, Measurable, Agreeable,

Realistic and Time bound) The weightages to the each KPA is assigned

depending on the level of challenge in its achievement.

B. Mid Year Review: - Review progress, re-visiting KPAs, ear1y warning of

non-performance etc. The assessing of resources, skill requirement and

feedback on other parameters.

C. Annual Assessment: - Discuss and arrive at an assessment of performance with

respect to agreed target, competence and potential of core values actualisation

by individual.

36

D. Feedback, Coaching & Counseling: - Communicating the financial

performance and providing developmental feedback.

PMS – linkage will be made with training and development, reward system, career

development etc. The audit of PMS will be done to achieve and maintain the

objective of the systems. The proposed PMS envisages open communication and

continuation between rated officer and his supervisor and major shift in feedback

the role of supervisor from Judges to guide in achieving the objectives of the

organization. The executives will be appropriately trained .

Performance dialogue is an important part of the assessment process where you

share your views regarding performance, key accomplishments, strengths,

developmental needs and receive feedback from your reporting manager on these

areas.

Vodafone Essar Spacetel Limited has a Band structure according to the hierarchy

in the organization. The Band Structure is as follows:

Table3.1: Band Structure

Band Designations

J Management Trainee

I Executive, Senior Executive

H Assistant Manager, Deputy Manager

G Manager, Senior Manager

F DGM,GM,AVP,VP

37

A snapshot of the Performance dialogue process is as below:-

Figure 3.1: Performance dialogue process

The PMS Calendar is as follows :

Table3.2: PMS Calendar

1 Issue of PMS forms in portal my

world 16th to 20th August HR Department

2 Upload of KPA by employees 21st to 25th August Employeee

3 Reporting manager to approve the

KPA uploaded by employee 30th August


38

5 Mid Year Performance Review by

employee in My World portal 1st to 10th Oct Employeee

6 Reporting manager puts his

ratings & comments against the KPA uploaded by employee

15th to 17th Oct Reporting Officer & Reviewer

9 Annual Performance Review by employee in My World portal

15th March to 31st March

Employeee

10 Reporting manager puts his

ratings & comments against the KPA uploaded by employee

1st April to 15th April


11 Normalisation of PMS 16th to 20th April Normalisation

Committee

12 Feedback discussion between

Employee & Manager after Mid Year Review

1st May to 25th May Reporting Officer & Reviewer

My World Portal:

It is a internal Portal of Vodafone Essar Spacetel Limited through PMS is done .

Some of the Snapshots of the portal are

39

Employee Log In

Log onto My World

40

Click on My career

41

Click on Mid Year Performance Dialogue

42

Click on Self Assessment

43

Click on Submit

44

Reporting Manager Log In

Click on Reporting Manager Comments

45

Click on Employee’s Number hyperlink

46

Enter the Ratings

47

Enter progress on developmental plan, Overall Review Comments

48

Click on Submit

49

Performance and Competence Assessment Form

To be filled by the employee

Annual Performance Dialogue

Name :

Review Period

Designation :

Location : Band :

Emp No

: Function :

Date of joining : Reporting Manager : Reviewing Manager :

KPA Weightage

Measurement criteria

Self Assessment

Comments

KPA Weightage


Self Assessment

Comments

KPA Weightage


Self Assessment

Comments

KPA Weightage


Self Assessment

Comments

KPA Weightage


Self Assessment

Comments

KPA Weightage


Self Assessment

Comments

The employee has to fill up six KPA and the total weight age is 100

50

Sample filled up Copy of the Above (by employee)


Name : XYZ Review Period

Designation : Executive 01 April 2009 to 31 March 2010

Location : Assam Band

: Band I

Emp

No : 1234 Function :

Marketing

Operations

Date of joining : March 17,2008 Reporting

Manager : ABC

Reviewing

Manager : DEF

KPA Weightage

Manufacture of numbers 20

Measurement

criteria Ensure 100% numbers are manufactured and configured in IN

Self Assessment

Comments

All the MSISDN that has been manufactured in U-VISION, the profile are being successfully

created in HLR & IN ,i.e , after MSISDN-SIM pairing is done in U-VISION , simultaneous

configuration is done in HLR & IN . Marketing: Launched SMS campaign through chordiant

.After the launch of Chordiant ,the number of campaigns has increased . JAN-196,FEB-344

KPA Weightage

U Vision to HLR Audit Audit of Demographic Details 25

Measurement

criteria 100% Reconciliation of activate base in U Vision to HLR. Daily Audit and MIS

Self Assessment

Comments

Daily basis reconcilation audit of active base in U-VISION & HLR is done. Marketing: Configured

RA Offers

KPA Weightage

Acitvation 10

Measurement

criteria 100% Activation of all SIM Delivered to be ensured and reported on a daily basis

Self Assessment

Comments

Daily basis reconcilation audit of active base in U-VISION & HLR is done. Marketing: Analysis of

campaigns done monthly

KPA Weightage

NMS 20

Measurement

criteria Weekly reporting of Number utilization

Self Assessment

Comments

NMS tracker is prepared to capture the utilised, reserved & unutilised MSISDN for each series

& it is reported Marketing: Regular Informatory campaigns send to retailers & customers

KPA Weightage

UAT 10

Measurement

criteria 0% Error for new product roll out

Self Assessment

Comments

For the new products UAT had been done & the poducts had rolled out with 0% Error

Marketing: Experiment undertaken to send SMS verbiage in local language(English text) & free

minute offers in seconds

51

KPA Weightage

Automation/Improvement of Process 15

Measurement

criteria Atleast two process improvement or automation with Sign Off

Self Assessment

Comments

The two processes(i.e new prepaid activation process & deletion of MSISDN) has been

improved & both the processes has been Signed Off Marketing: Configured 121 offers

To be filled by the Reporting Manager


Name : XYZ

Review Period

Designation :

Senior

Executive

01 April 2009 to 31 March 2010

Location : Assam Band : Band I

Emp


Marketing

Operations

Date of joining

: March 17,2008

Reporting

Manager : ABC

Reviewing

Manager : DEF

KPA Weightage Rating

Manufacture of numbers 20

Measurement


Self

Assessment

Comments

All the MSISDN that has been manufactured in U-VISION, the profile are being successfully created in HLR

& IN ,i.e , after MSISDN-SIM pairing is done in U-VISION , simultaneous configuration is done in HLR & IN .

Marketing: Launched SMS campaign through chordiant .After the launch of Chordiant ,the number of

campaigns has increased . JAN-196, FEB-344

Reporting

Manager

Comments

Saranga has consistently performed in manufacturing of numbers without error. Audit mechanism post

manufacturing in IN, BSCS and U-Vision is the one of the initiative which saranga has incorporated in the

system to ensure error free manufacturing. He is consistently able to increase camapigns but require

more intelligence to improvise the conversions.


U Vision to HLR Audit Audit of Demographic Details 25

52

Measurement


Self

Assessment

Comments

Daily basis reconcilation audit of active base in U-VISION & HLR is done. Marketing: Configured RA Offers

Reporting

Manager

Comments

Audit mecahinism post activation has ensured


Measurement

criteria

100% Activation of all SIM Delivered to be ensured and reported on a daily

basis 10

Self

Assessment

Comments

Daily basis reconcilation audit of active base in U-VISION & HLR is done. Marketing: Analysis of campaigns

done monthly

Reporting

Manager

Comments

Saranga has ensured activation of numbers within defined TAT through audit mechanism. U-Vision and

HLR audit has ensured all SMS triggered numbers are activated and customer are able to use services.

Needed to focus on the authentication of SIMs pre manufacturing. Regularly analysing of campaign to

ensure the maximum conversion with decrease cost/sub


NMS 20

Measurement


Self

Assessment

Comments

NMS tracker is prepared to capture the utilised, reserved & unutilised MSISDN for each series & it is

reported Marketing: Regular Informatory campaigns send to retailers & customers

Reporting

Manager

Comments

Number management and allocation of numbers has been found satisfactory. Should have worked on

publishing daily dashboard on the utilization part. Also needed focus on re-cycling numbers process.

Providing regular information of new launches to trade & customers


UAT 10

Measurement


53

Self

Assessment

Comments

For the new products UAT had been done & the poducts had rolled out with 0% Error Marketing:

Experiment undertaken to send SMS verbiage in local language(English text) & free minute offers in

seconds

Reporting

Manager

Comments

UAT of new SUKs and roll out. Initiative for Improvement of process relating to activation. New initiative

taken in respect of using different regional dialects sms to enhance the productivity.



Measurement


Self

Assessment

Comments

The two processes(i.e new prepaid activation process & deletion of MSISDN) has been improved & both

the processes has been Signed Off Marketing: Configured 121 offers

Reporting

Manager

Comments

Saranga has ensured that no new procduct is rolled out without UAT. Should have initiated process to

minimize activation TAT, revenue leakage.Taking care of smooth backend configuration of 121 offer

through chordiant.

Progress on Development Plan

Overall Review Comments

KPA Reporting Manager

No Weightage Rating Score

1 20 0 0

2 25 0 0

3 10 0 0

4 20 0 0

5 10 0 0

6 15 0 0

Total 100 0 0

Rating

54

The Reporting Manager has to fill up rating against each KPA in a scale of 0

to 5. 0 stands for Poor Performance and 5 stand for Exceptional Performance

Sample filled up Copy of the Above (by Reporting Manager)


Name : XYZ

Review Period Designation

: Executive


Location : Assam

Band

: Band I

Emp No

: 1234 Function :

Marketing

Operations

Date of

joining : March 17,2008

Reporting

Manager ABC

Reviewing

Manager : DEF


Manufacture of numbers 20 4

Measurement


Self

Assessment

Comments

All the MSISDN that has been manufactured in U-VISION, the profile are being successfully created

in HLR & IN ,i.e , after MSISDN-SIM pairing is done in U-VISION , simultaneous configuration is done

in HLR & IN . Marketing: Launched SMS campaign through chordiant .After the launch of Chordiant

,the number of campaigns has increased . JAN-196,FEB-344

Reporting

Manager

Comments

Saranga has consistently performed in manufacturing of numbers without error. Audit mechanism

post manufacturing in IN, BSCS and U-Vision is the one of the initiative which saranga has

incorporated in the system to ensure error free manufacturing. He is consistently able to increase

camapigns but require more intelligence to improvise the conversions.


U Vision to HLR Audit Audit of Demographic Details 25 3

Measurement


Self

Assessment

Comments

Daily basis reconcilation audit of active base in U-VISION & HLR is done. Marketing: Configured RA

Offers

Reporting

Manager

Comments Audit mecahinism post activation has ensured


Measurement

criteria

100% Activation of all SIM Delivered to be ensured and reported on a

daily basis 10 4

Self

Assessment

Comments



Reporting

Manager

Comments

Saranga has ensured activation of numbers within defined TAT through audit mechanism. U-Vision

and HLR audit has ensured all SMS triggered numbers are activated and customer are able to use

services. Needed to focus on the authentication of SIMs pre manufacturing. Regularly analysing of

campaign to ensure the maximum conversion with decrease cost/sub


NMS 20 4

55

Measurement


Self

Assessment

Comments



Reporting

Manager

Comments

Number management and allocation of numbers has been found satisfactory. Should have worked

on publishing daily dashboard on the utilization part. Also needed focus on re-cycling numbers

process. Providing regular information of new launches to trade & customers


UAT 10 5

Measurement


Self

Assessment

Comments



seconds

Reporting

Manager

Comments

UAT of new SUKs and roll out. Initiative for Improvement of process relating to activation. New

initiative taken in respect of using different regional dialects sms to enhance the productivity.


Automation/Improvement of Process 15 4

Measurement


Self

Assessment

Comments

The two processes(i.e new prepaid activation process & deletion of MSISDN) has been improved &

both the processes has been Signed Off Marketing: Configured 121 offers

Reporting

Manager

Comments

Saranga has ensured that no new procduct is rolled out without UAT. Should have initiated process

to minimize activation TAT, revenue leakage.Taking care of smooth backend configuration of 121

offer through chordiant.


Saranga was given inputs on Personality Development. Satisfactory improvement is seen in him.


Saranga is a consistent and steady performer. Needs to be more aggressive and interactive in the team.

He meets his expected deliverables and has the potential to improve further. Inputs required: -

Assertiveness - Analytics and presentation skills



1 20 4 80

2 25 3 75

3 10 4 40

4 20 4 80

5 10 5 50

6 15 4 60

Total 100 385

Rating Good Performance

56

To be filled by the employee after having feedback discussion between Employee,

Reporting Manager & Reviewing Manager(in case of Mid Year Performance

Review this form is not filled up)


Name : XYZ

Review Period Designation

:

Senior

Executive


Location : Assam Band : Band I Emp No : 1234 Function :

Marketing

Operations

Date of

joining : March 17,2008

Reporting

Manager ABC

Reviewing

Manager : DEF



Measurement


Self

Assessment

Comments

All the MSISDN that has been manufactured in U-VISION, the profile are being successfully created in

HLR & IN ,i.e , after MSISDN-SIM pairing is done in U-VISION , simultaneous configuration is done in

HLR & IN . Marketing: Launched SMS campaign through chordiant .After the launch of Chordiant ,the

number of campaigns has increased . JAN-196,FEB-344

Reporting

Manager

Comments


post manufacturing in IN, BSCS and U-Vision is the one of the initiative which saranga has

incorporated in the system to ensure error free manufacturing. He is consistently able to increase

camapigns but require more intelligence to improvise the conversions.



Measurement


Self

Assessment

Comments


Offers

Reporting

Manager



Measurement

criteria

100% Activation of all SIM Delivered to be ensured and reported on a

daily basis 10 4

Self

Assessment

Comments



Reporting

Manager

Comments

Saranga has ensured activation of numbers within defined TAT through audit mechanism. U-Vision

and HLR audit has ensured all SMS triggered numbers are activated and customer are able to use

services. Needed to focus on the authentication of SIMs pre manufacturing. Regularly analysing of

campaign to ensure the maximum conversion with decrease cost/sub


NMS 20 4

Measurement Weekly reporting of Number utilization

57

criteria

Self

Assessment

Comments



Reporting

Manager

Comments

Number management and allocation of numbers has been found satisfactory. Should have worked

on publishing daily dashboard on the utilization part. Also needed focus on re-cycling numbers

process. Providing regular information of new launches to trade & customers


UAT 10 5

Measurement


Self

Assessment

Comments



seconds

Reporting

Manager

Comments




Automation/Improvement of Process 15 4

Measurement


Self

Assessment

Comments



Reporting

Manager

Comments

Saranga has ensured that no new procduct is rolled out without UAT. Should have initiated process

to minimize activation TAT, revenue leakage.Taking care of smooth backend configuration of 121

offer through chordiant.




Saranga is a consistent and steady performer. Needs to be more aggressive and interactive in the team.

He meets his expected deliverables and has the potential to improve further. Inputs required: -

Assertiveness - Analytics and presentation skills



1 20 4 80

2 25 3 75

3 10 4 40

4 20 4 80

5 10 5 50

6 15 4 60

Total 100 385


Employee Feedback Comments

58

Sample filled up Copy of the Above(by employee)


Name :

XYZ

Review Period

Designation :

Senior

Executive


Location : Assam Band : Band I

Emp


Marketing

Operations

Date of joining : March 17,2008

Reporting

Manager : ABC

Reviewing

Manager : DEF



Measurement


Self Assessment

Comments

All the MSISDN that has been manufactured in U-VISION, the profile are being successfully created in

HLR & IN ,i.e , after MSISDN-SIM pairing is done in U-VISION , simultaneous configuration is done in

HLR & IN . Marketing: Launched SMS campaign through chordiant .After the launch of Chordiant ,the

number of campaigns has increased . JAN-196,FEB-344

Reporting

Manager

Comments


post manufacturing in IN, BSCS and U-Vision is the one of the initiative which saranga has incorporated

in the system to ensure error free manufacturing. He is consistently able to increase camapigns but

require more intelligence to improvise the conversions.



Measurement


Self Assessment

Comments


Offers

Reporting

Manager



Measurement

criteria

100% Activation of all SIM Delivered to be ensured and reported on a daily

basis 10 4

Self Assessment

Comments



Reporting

Manager

Comments

Saranga has ensured activation of numbers within defined TAT through audit mechanism. U-Vision and

HLR audit has ensured all SMS triggered numbers are activated and customer are able to use services.

Needed to focus on the authentication of SIMs pre manufacturing. Regularly analysing of campaign to

ensure the maximum conversion with decrease cost/sub


NMS 20 4

Measurement


59

Self Assessment

Comments



Reporting

Manager

Comments

Number management and allocation of numbers has been found satisfactory. Should have worked on

publishing daily dashboard on the utilization part. Also needed focus on re-cycling numbers process.

Providing regular information of new launches to trade & customers


UAT 10 5

Measurement


Self Assessment

Comments



seconds

Reporting

Manager

Comments





4

Measurement


Self Assessment

Comments



Reporting

Manager

Comments

Saranga has ensured that no new procduct is rolled out without UAT. Should have initiated process to

minimize activation TAT, revenue leakage.Taking care of smooth backend configuration of 121 offer

through chordiant.




Saranga is a consistent and steady performer. Needs to be more aggressive and interactive in the team. He

meets his expected deliverables and has the potential to improve further. Inputs required: - Assertiveness -

Analytics and presentation skills



1 20 4 80

2 25 3 75

3 10 4 40

4 20 4 80

5 10 5 50

6 15 4 60

60

Total 100 385


Employee Feedback Comments

Satisfied with the appraical process.I will try to improve on the things mentioned

61

CHAPTER 4

RATIONALE OF THE STUDY

62

RATIONALE OF THE STUDY

Performance Appraisal is the important aspect in the organization to evaluate the

employees’ performance. It helps in understanding the employees work culture,

involvement, and satisfaction. It helps the organization in deciding employees’

promotion, transfer, incentives and pay increase.

4.1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Human Resource (or personnel) management, in the sense of getting things done

through people, is an essential part of every manager’s responsibility, but many

organizations find it advantageous to establish a specialist division to provide an

expert service dedicated to ensuring that the human resource function is performed

efficiently.

“People are our most valuable asset” is a cliché, which no member of any senior

management team would disagree with. Yet, the reality for many organizations are

that their people remain under valued, under trained and under utilized.

The market place for talented, skilled people is competitive and expensive. Taking

on new staff can be disruptive to existing employees. Also, it takes time to develop

‘cultural awareness’, product / process / organization knowledge and experience

for new staff members.

63

4.2 FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Following are the various functions of Human Resource Management that are

essential for the effective functioning of the organization:

1. Recruitment

2. Selection

3. Induction

4. Performance Appraisal

5. Training & Development

Recruitment

The process of recruitment begins after manpower requirements are determined in

terms of quality through job analysis and quantity through forecasting and

planning.

Selection

The selection is the process of ascertaining whether or not candidates possess the

requisite qualifications, training and experience required.

Induction

a) Induction is the technique by which a new employee is rehabilitated into the

changed surroundings and introduced to the practices, policies and purposes of

the organization.

64

WHAT IS “PERFORMANCE APPRAISAL”?

Performance Appraisal is defined as the process of assessing the performance and

progress of an employee or a group of employees on a given job and his / their

potential for future development. It consists of all formal procedures used in

working organizations and potential of employees. According to Flippo,

“Performance Appraisal is the systematic, periodic and an important rating of an

employee’s excellence in matters pertaining to his present job and his potential for

a better job.”

CHARACTERISTICS

1. Performance Appraisal is a process.

2. It is the systematic examination of the strengths and weakness of an employee

in terms of his job.

3. It is scientific and objective study. Formal procedures are used in the study.

4. It is an ongoing and continuous process wherein the evaluations are arranged

periodically according to a definite plan.

5. The main purpose of Performance Appraisal is to secure information necessary

for making objective and correct decision in respect of an employee.

PROCESS

The process of performance appraisal:

1. Establishing performance standards

2. Communicating the Standards

65

3. Measuring Performance

4. Comparing the actual with the standards

5. Discussing the appraisal

6. Taking Corrective Action

LIMITATIONS

1. Errors in Rating

2. Lack of reliability

3. Negative approach

4. Multiple objectives

5. Lack of knowledge

4.5 METHODS OF PERFORMANCE APPRAISAL

The foregoing list of limitations represents a formidable challenge, even

considering the available battery of appraisal techniques. But attempting to avoid

these pitfalls by doing away with appraisals themselves is like trying to solve the

problems of life by committing suicide. The more logical task is to identify those

appraisal practices that are (a) most likely to achieve a particular objective and (b)

least vulnerable to the obstacles already discussed.

Before relating the specific techniques to the goals of performance appraisal stated

at the outset of the article, I shall briefly review each, taking them more or less in

an order of increasing complexity.

The best-known techniques will be treated most briefly.

66

ESSAY APPRAISAL

In its simplest form, this technique asks the rater to write a paragraph or more

covering an individual's strengths, weaknesses, potential, and so on. In most

selection situations, particularly those involving professional, sales, or managerial

positions, essay appraisals from former employers, teachers, or associates carry

significant weight.

GRAPHIC RATING SCALE

This technique may not yield the depth of an essay appraisal, but it is more

consistent and reliable. Typically, a graphic scale assesses a person on the quality

and quantity of his work (is he outstanding, above average, average, or

unsatisfactory?) and on a variety of other factors that vary with the job but usually

include personal traits like reliability and cooperation. It may also include specific

performance items like oral and written communication.

FIELD REVIEW

The field review is one of several techniques for doing this. A member of the

personnel or central administrative staff meets with small groups of raters from

each supervisory unit and goes over each employee's rating with them to (a)

identify areas of inter-rater disagreement, (b) help the group arrive at a consensus,

and (c) determine that each rater conceives the standards similarly. .

67

FORCED-CHOICE RATING

Like the field review, this technique was developed to reduce bias and establish

objective standards of comparison between individuals, but it does not involve the

intervention of a third party.

MANAGEMENT BY OBJECTIVES

To avoid, or to deal with, the feeling that they are being judged by unfairly high

standards, employees in some organizations are being asked to set - or help set -

their own performance goals. Within the past five or six years, MBO has become

something of a fad and is familiar to most managers.

RANKING METHODS

For comparative purposes, particularly when it is necessary to compare people who

work for different supervisors, individual statements, ratings, or appraisal forms

are not particularly useful. Instead, it is necessary to recognize that comparisons

involve an overall subjective judgment to which a host of additional facts and

impressions must somehow be added. There is no single form or way to do this.

The best approach appears to be a ranking technique involving pooled judgment.

The two most effective methods are alternation ranking and paired comparison

ranking.

1. “Alternation ranking”:

Ranking of employees from best to worst on a trait or traits is another method for

evaluating employees. Since it is usually easier to distinguish between the worst

68

and the best employees than to rank them, an alternation ranking method is most

popular. Here subordinates to be rated are listed and the names of those not well

enough to rank are crossed. Then on a form, the employee who is highest on the

characteristic being measured and the one who is the lowest are indicated. Then

chose the next highest and the next lowest, alternating between highest and lowest

until all the employees to be rated have been ranked.

2. “Paired-comparison ranking”:

This technique is probably just as accurate as alternation ranking and might be

more so. But with large numbers of employees it becomes extremely time

consuming and cumbersome.

Both ranking techniques, particularly when combined with multiple rankings (i.e.,

when two or more people are asked to make independent rankings of the same

work group and their lists are averaged), are among the best available for

generating valid order-of-merit rankings for salary administration purposes.

ASSESSMENT CENTERS

So far, we have been talking about assessing past performance. What about the

assessment of future performance or potential? In any placement decision and even

more so in promotion decisions, some prediction of future performance is

necessary. How can this kind of prediction be made most validly and most fairly?

69

360 DEGREE FEEDBACK

Many firms have expanded the idea of upward feedback into what the call 360-

degree feedback. The feedback is generally used for training and development,

rather than for pay increases.

Most 360 Degree Feedback system contains several common features. Appropriate

parties – peers, supervisors, subordinates and customers, for instance – complete

survey, questionnaires on an individual. 360 degree feedback is also known as the

multi-rater feedback, whereby ratings are not given just by the next manager up in

the organizational hierarchy, but also by peers and subordinates. Appropriates

customer ratings are also included, along with the element of self appraisal. Once

gathered in, the assessment from the various quarters are compared with one

another and the results communicated to the manager concerned.

Another technique that is useful for coaching purposes is, of course, MBO. Like

the critical incident method, it focuses on actual behavior and actual results, which

can be discussed objectively and constructively, with little or no need for a

supervisor to "play God."

Advantages

Instead of assuming traits, the MBO method concentrates on actual outcomes. If

the employee meets or exceeds the set objectives, then he or she has demonstrated

an acceptable level of job performance. Employees are judged according to real

outcomes, and not on their potential for success, or on someone's subjective

opinion of their abilities.

70

The guiding principle of the MBO approach is that direct results can be observed

easily. The MBO method recognizes the fact that it is difficult to neatly dissect all

the complex and varied elements that go to make up employee performance.

MBO advocates claim that the performance of employees cannot be broken up into

so many constituent parts, but to put all the parts together and the performance may

be directly observed and measured.

Disadvantages

This approach can lead to unrealistic expectations about what can and cannot be

reasonably accomplished. Supervisors and subordinates must have very good

"reality checking" skills to use MBO appraisal methods. They will need these skills

during the initial stage of objective setting, and for the purposes of self-auditing

and self-monitoring.

Variable objectives may cause employee confusion. It is also possible that fluid

objectives may be distorted to disguise or justify failures in performance.

Benefits of Performance Appraisals

• Measures an employee’s performance.

• Helps in clarifying, defining, redefining priorities and objectives.

• Motivates the employee through achievement and feedback.

• Facilitates assessment and agreement of training needs.

• Helps in identification of personal strengths and weaknesses.

• Plays an important role in Personal career and succession planning.

71

• Clarifies team roles and facilitates team building.

• Plays major role in organizational training needs assessment and analysis.

• Improves understanding and relationship between the employee and the

reporting manager and also helps in resolving confusions and

misunderstandings.

• Plays an important tool for communicating the organization’s philosophies,

values, aims, strategies, priorities, etc among its employees.

• Helps in counseling and feedback.

Rating Errors in Performance Appraisals

Performance appraisals are subject to a wide variety of inaccuracies and biases

referred to as 'rating errors'. These errors can seriously affect assessment results.

Some of the most common rating errors are: -

Leniency or severity : - Leniency or severity on the part of the rater makes the

assessment subjective. Subjective assessment defeats the very purpose of

performance appraisal. Ratings are lenient for the following reasons:

a) The rater may feel that anyone under his or her jurisdiction who is rated

unfavorably will reflect poorly on his or her own worthiness.

b) He/She may feel that a derogatory rating will be revealed to the rate to

detriment the relations between the rater and the ratee.

c) He/She may rate leniently in order to win promotions for the subordinates and

therefore, indirectly increase his/her hold over him.

72

Central tendency : - This occurs when employees are incorrectly rated near the

average or middle of the scale. The attitude of the rater is to play safe. This safe

playing attitude stems from certain doubts and anxieties, which the raters have

been assessing the rates.

Halo error : - A halo error takes place when one aspect of an individual's

performance influences the evaluation of the entire performance of the individual.

The halo error occurs when an employee who works late constantly might be rated

high on productivity and quality of output as well ax on motivation. Similarly, an

attractive or popular personality might be given a high overall rating. Rating

employees separately on each of the performance measures and encouraging raters

to guard against the halo effect are the two ways to reduce the halo effect.

Rater effect : - This includes favoritism, stereotyping, and hostility. Extensively

high or low score are given only to certain individuals or groups based on the

rater's attitude towards them and not on actual outcomes or behaviors; sex, age,

race and friendship biases are examples of this type of error.

Primacy and Regency effects : - The rater's rating is heavily influenced either by

behavior exhibited by the ratee during his early stage of the review period

(primacy) or by the outcomes, or behavior exhibited by the ratee near the end of

the review period (regency). For example, if a salesperson captures an important

contract/sale just before the completion of the appraisal, the timing of the incident

may inflate his or her standing, even though the overall performance of the sales

person may not have been encouraging. One way of guarding against such an error

is to ask the rater to consider the composite performance of the rate and not to be

influenced by one incident or an achievement.

73

Performance dimension order : - Two or more dimensions on a performance

instrument follow each other and both describe or rotate to a similar quality. The

rater rates the first dimensions accurately and then rates the second dimension to

the first because of the proximity. If the dimensions had been arranged in a

significantly different order, the ratings might have been different.

Spillover effect : - This refers lo allowing past performance appraisal rating lo

unjustifiably influence current ratings. Past ratings, good or bad, result in similar

rating for current period although the demonstrated behavior docs not deserve the

rating, good or bad.

4.6 ROLES IN THE PERFORMANCE APPRAISAL PROCESS

a. Reporting Manager

• Provide feedback to the reviewer / HOD on the employees’ behavioral traits

indicated in the PMS Policy Manual

• Ensures that employee is aware of the performance appraisal process

• Address employee concerns / queries on performance rating, in consultation

with the reviewer

b. Reviewer (Reporting Manager’s Reporting Manager)

• Discuss with the reporting managers on the behavioral traits of all the

employees for whom he / she is the reviewer

74

• Where required, independently assess employees for the said behavioral

traits; such assessments might require collecting data directly from other

relevant employees

c. HOD (In some cases, a reviewer may not be a HOD)

• Presents the proposed Performance Rating for every employee of his / her

function to the Normalization committee.

• HOD also plays the role of a normalization committee member

• Owns the performance rating of every employee in the department

d. HR Head

• Secretary to the normalization committee

• Assists HOD’s / Reporting Managers in communicating the performance

rating of all the employees

e. Normalization Committee

• Decides on the final bell curve for each function in the respective Business

Unit / Circle

• Reviews the performance ratings proposed by the HOD’s, specifically on the

upward / downward shift in ratings, to ensure an unbiased relative ranking of

employees on overall performance, and thus finalize the performance rating

of each employee

75

KEY CONCEPTS IN PMS

In order to understand the Performance Management System, some concepts need

to be explained which play a very important role in using the PMS successfully.

They are:

• KPA’S (KEY PERFORMANCE AREAS): The performance of an employee

is largely dependent on the KPA score achieved by the employee during that

particular year. Thus, it is necessary to answer a few basic questions i.e.

o What are the guidelines for setting the KPA’s for an employee?

o How does an employee write down his KPA’s for a particular

financial year?

o KRA’s: The six Perspectives.

o How is the KRA score calculated for an employee on the basis of the

targets sets and targets achieved?

• BEHAVIORAL TRAITS :

Some of the qualitative aspects of an employees’ performance combined with

the general behavioral traits displayed by the employee during a year constitutes

his behavior traits. An employee is assigned the rating on the basis of the

intensity of the behavior displayed by him. They play a very important role in

the deciding the final performance rating for an employee as is even capable of

shifting the rating one level upwards/downwards.

76

• LEADERSHIP COMPETENCY FRAMEWORK:

This competency framework is a simple and structured way to describe the

elements of behaviors required to perform a role effectively. This framework

also tries to assess the performance of an employee objectively.

• THE PERFORMANCE RATING PROCESS:

The rating process tries to explain the four different types of rating that an

employee can achieve i.e. X, E, G, I & P. It also explains the criteria, which is

considered for awarding any of these ratings to the employee.

• PROMOTION AND RATING DISRTRIBUTION GUIDELINES:

The promotion and normal distribution guidelines provide the framework

within which the performance appraisal process has to work. It is very

important that the HR department pays due attention to these guidelines while

preparing the bell curves for various functions and the consolidated bell curve

for all the functions. These guidelines also help in deciding upon the promotion

cases in a year.

77

PERFORMANCE RATING PROCESS

The Performance Dialogue has a NEW scale this year – PIGEX which will be

used to evaluate and assess team overall performance. It is our endeavor to create

a high performance culture which supports the achievement of individual, team

and organizational goals.

Rating Scale & Descriptors PIGEX SCALE

X - Exceptional Performance: Shows outstanding performance against goals. This

person is performing exceptionally well above the expectations of the role.

Score 460 and above

E - Exceeding Expectations: Regularly exceeds goals. This is an individual who

regularly exceeds the expectations of the role.

Score 400 to 459

G - Good Performance: All goals met and occasionally exceeded. This is an

individual who requires minimum guidance.

Score 300 to 399.

I - Improvement Required: Most, but not all, goals achieved. This person may need

guidance and support to perform adequately in the role. Score 200 to 299

P - Poor Performance: Many Key goals not met. Performing well below

expectations and requirements of the job. Low level of performance is not due to

78

lack of clarity, opportunity or development. This level of performance is not

acceptable and signals real improvement is needed.

Score 0 to199

Ratings are a function of calibration at the function / circle / OpCo levels. The

distribution curve for the 2009-10 Performance Dialogue cycle will be as below:

X – 5% of employees

E – 15% of employees

G – 65% of employees

I – 10% of employees

P – 5% of employees

Exceptional Performance (X)

� Performs consistently and

substantially above expectations in

all areas

� Achieves a final score greater than or

equal to 460

� Consistently delivers on stretch

targets

� Is proactive

� Spots and anticipates problems,

implements solutions

� Sees and exploits opportunities

� Delivers ahead of time

Exceeding Expectations (E)

� Performs above expectations in

all areas

� Achieves final score between

400-459

• Versatile in his/ her area of

operation

• Develops creative solutions and

require little / minimal

supervision

• Sets examples for others

• Take ownership of own

development

• Coaches others

79

� Sees the wider picture-impacts

across business

� Focuses on what’s good for the

business

� Seen as role model by others

� recognized as exceptional by other

functions as well

� Motivates others to solve problems

� Develops others

� Provides open and honest feedback

� Able to establish and lead cross-

functional teams

• Demonstrates business initiative

• Is self motivated

• Supportive team player

• Leads own team very effectively

• Demonstrate functional

initiative

80

CHAPTER 5

OBJECTIVES OF THE STUDY

81

5.1 OBJECTIVES OF THE STUDY

To carry out the study of Vodafone Essar Spacetel Limited, the following

objectives were framed

1. Identification of the technique of performance appraisal followed in Vodafone

Essar Spacetel Limited.

2. Employee attitude towards the present appraisal system.

3. Review of the current appraisal system in order to

a. Enhance productivity

b. Attain global standards

4. To provide suggestions & recommendations from the study conducted.

5.2 RESEARCH METHODOLOGY

RESEARCH DESIGN:

Research Design refers to "framework or plan for a study that guides the collection

and analysis of data". A typical research design of a company basically tries to

resolve the following issues:

a) Determining Data Collection Design

82

b) Determining Data Methods

c) Determining Data Sources

d) Determining Primary Data Collection Methods

e) Developing Questionnaires

f) Determining Sampling Plan

(1) Explorative Research Design:

Explorative studies are undertaken with a view to know more about the problem.

These studies help in a proper definition of the problem, and development of

specific hypothesis is to be tested later by more conclusive research designs. Its

basic purpose is to identify factors underlying a problem and to determine which

one of them need to be further researched by using rigorous conclusive research

designs.

(2) Conclusive Research Design:

Conclusive Research Studies are more formal in nature and are conducted with a

view to eliciting more precise information for purpose of making marketing

decisions.

These studies can be either:

a) Descriptive or

b) Experimental

83

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

as Conclusive.

SAMPLING PLAN:

Sample Size = 50 Employees

Sample Area = Vodafone Essar Spacetel Limited,Guwahati

Duration = One Month.

DATA COLLECTION:

Data Sources:

i. Secondary Data through Internet

ii. Primary Data through Questionnaire

iii. Contact Method

iv. Personal Interaction

SCOPE OF THE SURVEY

1. Employees Opinion as to the Purpose of Performance Appraisal

Performance standards / yardsticks

2. Awareness of technique of Performance Appraisal being followed at

Vodafone Essar Spacetel Limited among Employees

3. Number of Employees being appraised during their service period

4. Employees’ opinion as to the present appraisal system

5. Employee perception as to the frequency of appraisal

84

6. If continuous appraisal – what should be the gap between two appraisal

period

7. How Performance Appraisal affects the productivity of the employees

8. Who should do the appraisal?

9. Does appraisal help in polishing skills and performance area?

10. Does personal bias creeps-in while appraising an employee

11. If given a chance, would employees like to review the current appraisal

technique?

12. Appropriate method of conducting the performance appraisal

13. Does performance appraisal leads to identification of hidden potential

85

5.3 SAMPLE QUESTIONARE FORM

1. Do you feel there is a necessity to carry out performance appraisal of employees;

a) Yes b) No

2. Are you aware of the performance appraisal techniques being followed in

Vodafone Essar Spacetel Limited ;

a) Yes b) No

3.Have you ever been apprised during your service period;

a) Yes b) No

4. What is your opinion of the present appraisal system ;

a) Fully Satisfied b) Satisfied c) Can’t Say d) Dissatisfied

5. Should the appraisal process be:

a) Once during the service period b) Continuous

c) Never d) Can’t Say

6. What in your opinion should be the time period of conducting continuous

Appraisal?

a) Quarterly b) Half Yearly c) Yearly

Any specific reason………………………………

86

7. Does Performance Appraisal helps in improving the productivity of the

employees?

a) Yes b) No c) No idea

8. Who in your opinion should appraise the employee?

a) Superior b) Peer c) Subordinates d) Self Appraisal

e) Consultant f) All of the above

9. Does the appraisal system helps in polishing the skills or performance area?

a) Yes b) No c) Somewhat

10. Do you think personal bias creeps in while appraising an individual?

a) Yes b) No

11. If given a chance or an opportunity would you like that the current appraisal

procedure should be reviewed?

a) Yes b) No c) Can’t Say

12. What according to you should be the appropriate method for conducting

performance appraisal?

a) Rating the employee on number of traits along with the range of performance

for each by the supervisor.

b) For every trait, each subordinate is paired with and compared to every other

Subordinate.

c) Reviewing employees on the basis of identified specific examples of good Or

poor performance.

87

d) Setting specific measurable goals with each employee and periodically

reviewing the progress made.

e) Reviewing performance through case studies, presentations, role playing, etc.

for future performance.

f) Receiving feedback from people whose views are considered helpful and

relevant including the appraise himself.

13. Does Performance Appraisal leads to identification of hidden potential of the

employees?

a) Yes b) No

14. Suggestions and views

…………………….…..…………………………………………………………

…………………….…..…………………………………………………………

…………………….…..…………………………………………………………

Thank you,

Date __ / __ / _____

88

CCHHAAPPTTEERR 66

FFIINNDDIINNGGSS AANNDD AANNAALLYYSSIISS

89

FFIINNDDIINNGGSS AANNDD AANNAALLYYSSIISS

Employees Opinion as to the Purpose of Performance Appraisal


Table 6.1: Employees Opinion as to the Purpose of Performance Appraisal


Options Response

Yes 42

No 08

Awareness of technique of Performance Appraisal being followed at Vodafone

Essar Spacetel Limited among Employees

Table 6.2: Awareness of technique of Performance Appraisal being followed at

Vodafone Essar Spacetel Limited among Employees

Response

Yes 36

No 14

90

Number of Employees being appraised during their service period

Table 6.3: Number of Employees being appraised during their service period

Options Response

Yes 50

No 0

Employees’ opinion as to the present appraisal system

Table 6.4: Employees’ opinion as to the present appraisal system

Options Responses (in %)

Fully Satisfied 2

Satisfied 24

Can’t Say 44

Dissatisfied 30

91

Employee perception as to the frequency of appraisal

Table 6.5: Employee perception as to the frequency of appraisal


Once During The Service Period

2

Continuous 92

Never 0

Can’t Say 6

If continuous appraisal – what should be the gap between two appraisal

periods

Table 6.6 : gap between two appraisal periods


Quarterly 20

Half Yearly 44

Yearly 36

92

How Performance Appraisal affects the productivity of the employees

Table 6.7: Performance Appraisal affects the productivity of the

employees

+ Feedback 38 - Feedback 12 Neutral -

Who should do the appraisal?

Table 6.8: Concern person to do the appraisal


Superior 24

Peer 0

Subordinate 0

Self Appraisal 8

Consultant 4

All of the above 48

Superior + Peer 16

93

Does appraisal help in polishing skills and performance area?

Table 6.9 : help in polishing skills and performance area


Yes 74

No 10

Somewhat 16

If the process of appraisal does not lead to the improvement of the skills and

proficiency of the employees, the very purpose of appraisal becomes illogical. In

the survey conducted it was observed that nearly 74 % of the respondents agree

that Performance Appraisal does leads to polishing the skills of the employees.

Nearly 10 % of the respondents view that it does not serve this purpose and around

16 % were not able to respond as to whether it serve any such purposes or not.

Does personal bias creeps-in while appraising an employee

Table 6.10: personal bias creeps-in while appraising an employee


Yes 82

No 18

In the process of appraising, both the parties are human being, that is, the one who

is being apprised and the other who is appraising. Thus, there bound to be

subjectivity involved, be it an objective way of appraising.

94

Thus, when asked from among the sample size of 50 respondents, as huge as 82 %

responded that personal bias do creep in while appraising an individual. Hence, it

is inevitable to say that personal likings do not come in the process of appraisal. It

is the extent to which the appraiser manages it so that it does not become very

partial and bias.

If given a chance, would employees like to review the current appraisal

technique?

Table 6.11: would employees like to review the current appraisal technique


Yes 72

No 4

Can’t Say 24

Appropriate method of conducting the performance appraisal

Table 6.12: Appropriate method of conducting the performance appraisal


Ranking Method 12

Paired Comparison 0

Critical Incidents 20

MBO 58

Assessment Centre 4

360 degree 6

95

Does performance appraisal leads to identification of hidden potential

Table 6.13: performance appraisal leads to identification of hidden potential


Yes 96

No 4

96

CHAPTER 7

LIMITATIONS OF THE STUDY

97

LIMITATIONS OF THE STUDY

A few limitations and constraints came in way of conducting the present study,

under which the researcher had to work are as follows:

• Although all attempts were made to make this an objective study, biases on the

part of respondents might have resulted in some subjectivity.

• Though, no effort was spared to make the study most accurate and useful, the

“sample Size” selected for the same may not be the true representative of the

Company, resulting in biased results.

• This being the maiden experience of the researcher of conducting study such as

this, the possibility of better results, using deeper statistical techniques in

analyzing and interpreting data may not be ruled out.

98

SUGGESTIONS AND CONCLUSION

After having analyzed the data, it was observed that practically there was no

appraisal in the organization. To be an effective tool, it has to be on the continuous

basis. This is the thing that has been mentioned time and again in the report, as, in

the absence of continuity, it becomes a redundant exercise. Before actually

deciding drafting what should be the kind of appraisal the following things should

be taken care of:

1. The very concept of performance appraisal should be marketed throughout the

organization. Unless this is done, people would not accept it, be it how important

to the organization.

2. To market such a concept, it should not start at bottom, instead it should be

started by the initiative of the top management. This would help in percolating

down the concept to the advantage of all, which includes the top management as

well as those below them. This means that the top management has to take a

welcoming and positive approach towards the change that is intended to be

brought.

3. Further, at the time of confirmation also, the appraisal form should not lead to

duplication of any information. Instead, detailed appraisal of the employee’s work

must be done – which must incorporates both the work related as well as the other

personal attributes that are important for work performance.

99

4. It should be noted that the appraisal form for each job position should be

different as each job has different knowledge and skill requirements. There should

not be a common appraisal form for every job position in the organization.

5. The job and role expected from the employees should be decided well in

advance and that too with the consensus with them.

6. A neutral panel of people should do the appraisal and to avoid subjectivity to a

marked extent, objective methods should be employed having quantifiable data.

7. The time period for conducting the appraisal should be revised, so that the

exercise becomes a continuous phenomenon.

8. Transparency into the system should be ensured through the discussion about

the employee’s performance with the employee concerned and trying to find out

the grey areas so that training can be implemented to improve on that.

Ideally in the present day scenario, appraisal should be done, taking the views of

all the concerned parties who have some bearing on the employee. But, since a

change in the system is required, it cannot be a drastic one. It ought to be gradual

and a change in the mindset of both the employees and the head is required.

100

REFERENCES

1. Vodafone Essar Spacetel Limited Personal Guide

2. www.vodafone.in

3. www.mbaprojectsonline.com

4. www.India-cellular.com

performance apprisal for mba hrm

Documents