Final Project Ofk Ks

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PROJECT REPORT

ON COMPARATIVE ANALYSIS OF

PERFORMANCE APPRAISAL SYSTEM

AT HFCL AND VODAFONE

KULDEEP

Roll No.:80907320016

IN FULFILLMENT OF DEGREE OF BACHELOR OF BUSINESS

ADMINISTRATION 2008-10

SUBMITTED TO: MR.LICON JEET PAL SINGH


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ACKNOWLEDGEMENT

No task is a single mans effort. Various factors, situations and persons

integrate to provide the background for the accomplishment of a task. Behind

a successful undertaking are blessing and guidance of many. My sincerest

thanks to Mr. lokesh bhardwaj at HFCL Infotel without whose kind

benedictions this project would have been impossible. I was fortunate to get

opportunities to interact with the real working environment and learnt a lot

about the function of HR systems in a modern corporate setup. I would also

like to thank Mr.LINCON JEET PAL SINGH She have been my project instructor

and guided me at every step and my discussions with them were truly

enlightening. Their dedication and sincerity towards the project helped me a

lot in completing the report.

Last but not the least: I would like to thank the staff members who provided

full cooperation and continuous support during the course of this assignment. I

also thank the my institute and its esteemed faculty for cooperating with me.


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PREFACE

Employees Performance Appraisal system must focus on the

performance and future potential of the employee and not only for judging thecaliber of an employee so as to decide salary increment.

The appraisal is an ongoing an continuous process where the

evaluations are arranged periodically according to a definite plan.

The first chapter describes historical development in the area of

employees performance Appraisal system in companies. Further, the process

involved has been explained in brief. In second and third chapter, profile of

HFCL and VODAFONE and objectives of the study have been described. The

chapter research methodology describes the methodology in terms of the

research design, sampling design, questionnaire design, methods of collection

and the analysis of data. Further, pre-testing of the questionnaire, its validity

and reliability and the techniques used for analysis of the final data are

outlined. The methodology of the pilot & main study is explained in this

chapter.

Chapter describes in-depth study of the Performance Appraisal System

of HFCL and Vodafone and its effectiveness. Conclusions from primary data

and views of the experts of the field have been critically analyzed to arrive at

specific findings. Based on these findings, certain specific observations have

been concluded in the form of recommendations.


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In Chapter primary data collected is tabulated, analyzed and

interpretation done to arrive at findings of the research.

In last it describe the findings and conclusion attempted to arrive at

conclusions and recommendations for an improved appraisal system in the

company that the employees contribute better in the productivity of the

company.


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CONTENT

1) Introduction. 6-9

2) Company Profile. 10-20

3) Review of literature. 22-23

4) Objective of study. 24

5) limitations. 25

6) Research Methodology. 26-33

7) Methods of employers performance appraisal and evaluation

Of the system followed in HFCL and VODAFONE. 34-41

8) Data analysis and interpretations. 42-76

9) Finding & conclusion. 77-81

10)Bibilography 82

11)Questionnaire 83-88

.


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INTRODUCTION:-

Once an employee is selected and trained for a job then management would like

to see how her performs his work. It helps in evaluation the performance of an

employee and in assessing the hiring and training methods followed in an

organization. The employees are recruited with some objective in mind,

whether these have been achieved or not has to be regularly evaluated.

Merit rating is a process of evaluation an employees performance of a job in

terms of its requirements. The rating of a man by another man is as old as

mankind, but formal merit rating system are of respectively recent origin. Merit

rating is also terms as Performance Appraisal or Employee Appraisal.

MEANING

Performance appraisal is a process of measuring quantitatively and qualitatively

an employees past or present performance against the background of his

expected role performance the background of his work environment and about

his future potential for an organization.

Performance appraisal is a border term then Merit rating, even though these

two terms are used synonymously. In Merit rating, the focus is on judging the

caliber of an employee so as to decide salary increment, whereas performance

appraisal focuses on the performance and future potential of the employee.


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FEATURES

The main characteristics of performance appraisal are following:-

Performance appraisal is a systematic process consisting of number of

steps to be followed for evaluating an employees strengths and

weakness.

It is a systematic and objective description of an employees strength

and weaknesses in terms of the job.

The appraisal is an ongoing and continuous process where the

evaluations are arranged periodically according to definite plan.

The performance appraisal seeks to secure information necessary for

making objectives and correct decisions on employees.

Performance appraisal may be formal or informal. The formal system is more fair and objective since

it is carried out in systematic manner using printing appraisal forms.

OBJECTIVES

Performance appraisal can be carried out with various objectives in mind and

these objectives can be classified under the following four heads:-

Work-Related objectives

Career Development Objectives

Communication

Organizational Objectives


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PROCESS

Performance appraisal should be that on the basis of certain standards or

criterion fixed in advance. The employee should also have the knowledge of the

yardsticks to be used for evaluating them. Unless a proper process is used for

evaluation, it will not give good results. Following process is used for merit

rating:

STRUCTURE OF THE RESEARCH

The study has been presented in eight chapters as described below:-

The first chapter titled Introduction describes historical developments in the

area of the employees performance Appraisal system in companies. Further,

the process involved has been explained in brief. In second and third chapters,

profile of HFCL and objectives of the study have been described. The fourth

Chapter is titled as Review of Literature and highlights in brief the work

already done in the area of Human Resource Management in electronics and

telecom sector based in northern States of India, justifying need for the

present work.

The fifth chapter titled Research Methodology describes the methodology in

terms of the research design, sampling design, questionnaire design, methods

of collection and the analysis of data. Further, pre-testing of the questionnaire,

its validity and reliability and the techniques used for analysis of the final data

are outlined. The methodology of the pilot & main study is explained in this

chapter.


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The sixth chapter titled Methods of Employees Performance Appraisal and

Evaluation of the System followed in HFCL and VODAFONE describes in-

depth study of the Performance Appraisal System of HFCL and its

effectiveness, Conclusions from primary data and views of the experts of the

field have been critically analyzed to arrive at specific findings. Based on these

findings, certain specific observations have been concluded in the form of

recommendations. Data Analysis and Interpretation is the title of seventh

chapter in which primary data collected is tabulated analyzed and

interpretation done to arrive at findings of the research.

The eighth chapter titled Finding and Conclusion attempted to arrive at

conclusions and recommendations for an improved appraisal system in the

company so that the employee contributes better in the productivity of the

company.


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COMPANY PROFILE OF HFCL

HFCL Infotel Ltd. is the first basic telephony service provided in Punjab

Launched it on 16th

October 2000 under the name CONNECT. This has

brought to the people of Punjab a world-class telecom experience-technology,

products customer service etc.

Vision Statement

To be the most admired telecom brand

Mission Statement

Deliver total telecommunication solutions by offeringinnovative products and services through superior technology,

ensuring customer delight.

CONNECT is an business venture of Himachal Futuristic Communication Ltd.

Indias leading telecommunications giant, CONNECT is further supported by

the expertise of Lucent Technologies USA, Huawei Technologies, IIT Chennai,

Compaq, Cisco, CGI, Bell, Nexxia and Cincom.

With an investment of over Rs.1400 crores, HFCL, Infotel, has set up a State-of-

the-art network in over 130 towns and cities in Punjab. The average revenue

perline (ARPL) for CONNECT is amongst the highest in the country. With a clear

focus on quality subscribers through well-planned roll out and through

appropriate revenue focus in our marketing strategy, we are confident of

ensuring that we retain our position of being amongst the top ARPL brands in

the country. The wide array of innovative products and services in the data

and broadband segment has further allowed the company to drive its revenue

growth.


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The launch of Triple Play service that delivers voice, data and video to a

subscriber is a first by any telecom operator in the country. CONNECT is also

the first operator in the country to launch a CDMA based pre-paid mobile

service in 2002. Besides fixed line telephony, mobile telephony and internet

access, CONNECTs services include an array of broadband, enhanced and data

services like internet Leased Lines ISDN, VPN, Centrex, Web Hosting, DSL and

server Co-location. Customised solutions are also available for its Corporate

Customers & additionally, services like Video Conference, Audio Conference,

Phone to mail and VMS from an important part of the CONNECT portfolio.

Exclusive world-class showrooms to provide high quality customer care to

CONNECT subscribers have been introduced in major cities of Punjab. These

showrooms aim to fulfill any telecom need of the subscribers. They provide a

single window opportunity to address all customer queries, besides serving as

an outlet for sale of all CONNECT products. These aesthetically designed

outlets allow CONNECT subscribers to buy any of CONNECT services while

experiencing exclusive CONNECT services like Phone to mail, Audio Conference

Bridge, Video Conference, Broadband Internet etc. A customer can subscriber

to a telephone connection, buy Phone cards, CDMA mobile handsets,

Customer Premises Equipment (CPE) and internet products. One can also make

bill payments, register a complaint and seek information on any of the

companys products or services. Specially trained executives attend to the

customer needs and ensure that they are met with speed and efficiency.

Recently, an agreement has been signed between Government of Punjab and

HFCL Infotel Ltd. wherein CONNECT will provide free data connectivity for the

governments e-governance & citizen services projects. This connectivity will


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facilitate communication between state headquarter, district headquarters,

sub-divisions and blocks. The e-Governance project will help the government

in improving revenue collection, delivery of citizen services, increase

government accountability and transparency thereby increasing citizen trust in

government besides providing effectiveness MIS for government decisions

indeed with a future proof network, that connects town and village in Punjab,

along with an emphasis on service excellence and quality. CONNECT has

exceeded customer expectations and will continue to do so in the future.

GROUP PROFILE

The Group companies and Associates companies of Himachal Futuristic

Communications Ltd.:- HFCL Infotel Ltd., HFCL Satellite Communication Ltd.

and Microwave Communications Ltd. which offer Basic Telephony and

Internet services. V-sat Services and Paging services respectively have also

made a name for themselves. HFCL Infotel Ltd. became the first basic service

provided in Punjab.

HFCL Satellite Communication Ltd. is catering to a number of channels like Aaj

Tak by providing customized DSNG vans, Himachal Futuristic Communications

Ltds Pagelink, together with Pagepoint, is one of the leading players in field of

paging services. HTL, a major telecom equipment supplier, which was recently

acquired by HFCL is not only be an extension of the manufacturing aspect of

HFCL but also synergises and value adds to the already existing product range

of HFCL.


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ACHIEVEMENTS & MILESTONES

HFCL Infotel Ltd. launched commercial services in Chandigarh on the

16th

of October 2000 under the brand name Connect & its services are

now available in over 130 towns of Punjab World-class technology from

international giants like Lucent Technologies & Huawei, coupled with a

phenomenal reach through an optical fiber network of over 3,000 kms in

Punjab, lends a cutting edge to Connects competitiveness in the

telecom services sector.

Connect has positioned itself as a Total Telecommunication Solutions

Provider and offers the complete portfolio of telecom services that

include fixed line & mobile telephony, broadband internet & customized

data solution and a host of value added services that includes video &

audio conferencing, besides exciting lifestyles services.

Connect offers extremely innovative product & tariff options to its

subscribers, enjoy excellent brand equity and has also been rated as the

No.1 basic telephony operator in Punjab by TRAI.

Launched Planet Connect a one-stop for all telecom needs of a

subscriber. Besides subscribing to any Connect service, a consumer can

also buy mobile phones, personal computers, surf the internet @ 5.12

kbps & video conference with anyone across the world at the Plant

Connect.

Pioneered the launch of Triple Play service-voice, video & data

together, a first by any telecom operator in the country in October05.

The launch of this service also marked the introduction convergent

services by a telecom brand in India.


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Connect was the Ist telecom operator to launch Broadband Internet in

Punjab and set new benchmarks of services excellence in this domain.

The brand is the market leader in the broadband segment in Punjab.

The brand has created a wide Public Call Offices (PCO) network acrossthe state of Punjab. Now with over 37,000 PCOs CONNECT possibly has

the largest PCO network amongst the all private fixed line operators in a

single circle in India.

Pioneered the concept of Public Access Terminal (PATs) a virtual

automatic Pay Phone running on intelligent network that can be used by

a consumer by using Calling Card to make call to any local, STD or ISD

destination. More than 1,000 such PATs have been installed in high

traffic locations across the Punjab.

AREAS OF OPERATION

Business Solutions

Connect offers full range of communication solutions for the business

requirements of modern industry.

Landline Telephony

It has helped in bringing people closer through its state of the art network &

latest product offerings.

Internet and Data Services

CONNECT Internet & Data Services allows you to transfer voice, data and

image simultaneously at high speedsover standard copper wires.


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Mobile Telephony

CONNECT Mobile uses the advanced CDMA technology. This enables you to

make and receive calls from anywhere in the world.

Value Added ServicesCONNECT Value Added Services enables you to conduct an audio as well as

voice conference service.

HOME USER SEGMENT

Landline Telephone

CONNECT is today a leading brand name in the basic telecom services in

Punjab & Chandigarh.

Connect Mobile

CONNECT provides WLL Mobile service in Chandigarh, Ludhiana, Jalandhar

and Amritsar under the brand name CONNECT Mobile.

Phonecards

CONNECT Phone card is a smart and convenient way of making and receiving

calls from anywhere in the world.

Internet Services

With CONNECT NetReady, all new CONNECT landline telephone subscribers

can now enjoy free Internet access 24 hours a day.

Public Access

A convenient way to connect, TRAI ranks us No.1 in Customer Satisfaction in

Punjab.

PCO Services

CONNECT Phone Points have been installed at various important locations in

various cities across Punjab.


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Phone Cards

CONNECT Phone card is a smart and convenient way of making phone calls.

TECHNOLOGY STRENGTH

1. Welcome to a whole new world where the futuristic telecom network

delivers a wide range of voice, data and video services, at high speeds. A

Company spearheading Punjabs Telecom revolution, offers the entire

spectrum of telecom solutions such as Landline Telephony, Mobile

Phone Service, PCOs, Centrex, DSL, Intelligent network Services,

ISDN, Leased Lines, Internet Leased Lines and much more. With

technological know how from the globally acknowledged leaders like

Lucent technologies (USA), Compaq, Cisco, Bell Nexxia, Suntec and IIT

Chennai.

2. CONNECTS Broad band fibre network is enabled for interactive

multimedia services and capable of high quality content, high speed

Internet access and large number of interactive applications including

B2B and B2c e-commerce.

3. CONNECT has also provisioned fiber connectivity to the larger

Corporate houses and Industrial areas. CONNECT provides and

uninterrupted service with large centrally administered state of the art

digital switches, optical fibre backbone and backhaul and installation

practices to ensure high quality voice and data communication.


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COMPANY PROFILE OF VODAFONE:----

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

Vodafone made the UK's first mobile call at a few minutes past midnight on 1

January 1985. Within fifteen years, the network was the largest company in

Europe and the largest of its kind anywhere in the world. By the turn of the

century, almost every second UK citizen had a mobile and a third of them

were connected to Vodafone.

The Vodafone story is one of investment, innovation and award-winning

customer service. Above all, its one of growth and the ability to deliver the

tremendous benefits of mobile communications, not just in the UK but

worldwide.

Vodafone is a British mobile network operator with its headquarters in

Newbury, Berkshire, England, UK. It is the largest mobile telecommunications

network company in the world by turnover and has a market value of about 75


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billion (August 2008). Vodafone currently has operations in 25 countries and

partner networks in a further 42 countries

The name Vodafone comes from Voice data Phone, chosen by the company to

"reflect the provision of voice and data services over mobile phones."

In September 21, 2007, Hutch, Indias fourth-largest mobile service provider,

will be renamed Vodafone. As is known, Vodafone had acquired 67 per cent in

Hutchison Essar from Hong Kong-based Hutchison Whampoa a few months

ago, in a bid to enter the fast-growing Indian market.

This transformation will witness a huge, pan-India marketing effort, and a

heavy use of television, press, the outdoors and the Internet is well on its way.

In fact, the television campaign is likely to break in a days time.

For the record, global player Vodafone completed the acquisition of Hutchison

Essar in May 2007 and the company was formally renamed Vodafone Essar inJuly 2007.


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2009

y June

Completion of merger between Vodafone Australia Limited and

Hutchinson 3G Australia Pty Limited.

y March

Telephonic and Vodafone announce milestone Pan European

collaboration to share network infrastructure in Germany, Spain, Ireland

and the UK.

y

February

Hutchinson and Vodafone agree to merge Australian telecom operations

to form a 50:50 joint venture.

y January

Vodafone trials HSPA+ mobile broadband at speeds of up to 16 Mbps.


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Vodafone Global Enterprise

Global Enterprise is a business set up by Vodafone with the sole purpose of

handling Vodafone's multinational clients. It is the high end business to

business (B2B) section of Vodafone Group, and acts like an operating country

(such as for example Vodafone UK). Devices and services available in any

operating country, are available to Global Enterprise customers in the same

country, and so Vodafone Global Enterprise are able to offer a wide range ofproducts. Vodafone Global Enterprise have a presence in over 65 countries, and

this number is expected to grow in future, as with the recent acquisition of

Ghana Telecom. Since its foundation in 2007, Global Enterprise has aimed to

be a world leader in managed mobility services. Vodafone Global Enterprise

are headquartered in Newbury, but have operatives around the world; while

many of Vodafone's marketing employees are relocated to London, Global

Enterprise' team will remain in Newbury.


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SPONSORSHIPS

Technique 09, Annual Techno-Management Festival of IIT Gauwahati, INDIA

as the Title Sponsor

Brisbane Lions Football Club, Australian rules football team, major sponsor

from 2007, this sponsorship ended on October 31, 2009

Kshitij, Annual Techno-management festival of IIT Kharagpur, Strategic

Partner 2008

Albania national football team, 2008 sponsor


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REVIEW OF LITERATURE

LITERATURE SURVEY

An attempt has been made to review the literature pertaining to various aspects

of Human Resource Management in the Government as well as private sector

industry. The review of studies provides proper prospective about the research

problem and helped to formulate a suitable methodology of the study. Two of

major researches in the area have been explained below:-

The important factor in change process is people, propensity and motivation

to participation was the finding by Malhotra (1991) as a result of attempting

to examine adaptive capabilities of electronics industry in India through her

study on Organisational Change: A Study of Selected Electronics

Organisactions in Northern Indiaand concluded that the study suggested that

to expedite transition to the control via budget and standards, there was a

need for result based leadership conforming to requisite organizational state

and characteristics. It further suggested that for an organization to remain

dynamic, it should define its environment segments properly and scan it

thoroughly.

The Study titled A study of Organisational Climate in Relation to the Job

Satisfaction and Managerial Effectiveness in Electronics Industry in Punjab

concluded that fear and punishment theory was no more successful in the

organizations as it leads to frustration and dissatisfaction and hence, did not

motivate the executives. It further concluded that proper training to

executives was required for high level of effectiveness. Ritu (1999) further

stressed that the levels of the three variables i.e. organizational climate, job


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satisfaction and managerial effectiveness among the executives working in

organizations should be checked on continuous basis.

The review of literature has also reveled that most of the industries recognizes

the need for development of its employees and result based leadership in the

organizations for a better growth in the industry. It has also been emphasized

that training to executives required on regular basis.

No researcher has tried to find the real of employees in telecom sector after

closure of major electronics and telecom companies in Punjab. Also no

researcher has ever tried to find the reasons for a high turnover of employees

in the telecom sector company of Punjab.

After going through the work of various researches and surveys done, it has

been found that most of the researchers have used secondary data alone as a

base of their study. The present study has used data collected from the

primary sources. Study of employees performance appraisal in a Punjab based

telecommunication company not only for the purpose of evaluation but for

the development of the employees has also failed to attract attention of any

researcher.

Thus, most of the studies covered topics related to organizational behaviour

and Human Resource in non-telecom industries. There appears enough scope

for carrying out the study and making an analysis of employees performance

appraisal and its effectiveness in telecom sector based in Punjab which was

once on the top of Indian Telecommunication map.


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OBJECTIVES OF STUDY

To study the concept and theory of Employees Performance Appraisal

System have being followed in HFCL Infotel Limited and Vodafone

Mohali.

To evaluate the existing Performance Appraisal System of HFCL Infotel.

To recommend improvements in the existing Performance Appraisal

System of the company to make it more effective


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LIMITATIONS

1) The study is only related to one organization, so conclusion drawn may

not be finding its utility in all the industries.

2) As the time period is very limited, the study cannot be a full-fledged

one.

3) Difficulty was faced in getting the various answers because employees

couldnt devote enough time to us.

4) The researcher is armature in this field and so some of the factors may

not be covered in this study.

5) It is very difficult to study the human psychology perfectly.

6) The study is based only on the information received from thequestionnaires.

7) The study is based on researchers own ideas and insights.


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RESEARCHMETHODOLOGY


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Research Methodology

This chapter describes the methodology in terms of the research involving

sampling , tools, questionnaire design, methods of collecting data and its

analysis. The questionnaire, its validity and reliability and the techniques used

for analysis of the final data are outlined. The methodology of the pilot and the

main study is explained.

Only primary data has been used for the research. Primary data has been

collected by using a questionnaire comprising of 18 questions and getting it

filled by employees of the company.

RESEARCH METHODOLOGY

Research means a search for knowledge or gain some new knowledge &

methodology can properly refer to the theoretical analysis of the methods

appropriate to the field of study or the body of methods. A research

methodology has a specified framework for collecting the data in an effective

manner. Research methodology means a defining a problem, developing the

research plan, collecting the information, such framework is called Research

Design.


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PLAN ADOPTED FOR RESEARCH STUDY

The research methodology adopted for the study is summarized in a flowchart.

Designing of a questionnaire

The success of the questionnaire method for collecting information depends

largely on the proper designing of the questionnaire. The designing of a

questionnaire is a highly specialize job and requires a great deal of skills and

experience. It is difficult to lay down any hard and fast rules to be followed in

this connection. Although, much progress has been made, the designing of

questionnaire is still very much an art.

Most of what is known about making questionnaire is based on experience.

Neither a basic theory nor a fully systemized approach to the problem has

been developed. Never the less the extensive experience of many researchers

and limited number of organized experiments have let to a considerable

understanding of the problem. These are definitely help a beginner researcher

to avoid pitfalls but they can not be substituted for creating imagination in

designing the questionnaire procedures.

While developing a questionnaire the researcher has to be very clear on the

following issues:


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What information will be sought?

What type of questionnaire will be required?

How that questionnaire will be administered?

What the contents of the individual question will be? How many questions will be used and how the individual question will

be sequenced?

Whether the questionnaire shall be distinguished or un-distinguished?

Whether the questionnaire shall be structured or un-structured?


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MAIN STUDY

FORMULATION OF RESEARCH

EXTENSIVE SURVEY OF LITERATURE AND REVIEW

& IDENTIFICATIONS OF CAPS

CONCENPTUAL FRAMENWORK

DESIGN OF QUESTIONNAIRE

MAIN STUDYDATA COLLECTION

DATA ANALYSIS AND INTERPRETATION USE OF

STASTICAL TECHNIQUES AND GRAPHICAL

REPRESENTATION

DISCUSSION OF THE FINDINGS OF THE STUDY

RECOMMENDATIONS


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SCOPE OF THE STUDY

In view of the objectives of this study data respondents were chosen from five

different departments including Finance, Human Resource, Marketing,

technical department _ I and Technical II. During the present study, the

researcher also held informal discussions with experts in HRM from industry to

know their views regarding factors contributing towards effectiveness of an

employees performance appraisal system.

The present study makes use of primary data for critically examining the

effectiveness of performance appraisal system prevailing in the company.

SAMPLING PLANT

Sample Size

The sample comprised of45 employees from HFCL and VODAFONE. Total of 90

employees were covered for collection of data.

Data Collection

Primary data collected for the present study was restricted to sample

departments mentioned. Selection of the sample was purposive and based on

the judgement.

Primary Data

A). Respondents

All the major departments of the company were identified and 10 employees

selected on random basis were covered for collection of data.


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B). Tools

Separate pre-tested questionnaires were designed for employees. The

questionnaires were pre-tested for clarity on two respondents (One from the

HR department and one from other than HR). Improved questionnaires were

used for final collection of data.

C). Administration

The investigator (Student) personally administered the questionnaires.

DATA ANALYSIS

The primary data received through questionnaires from employees of different

departments of the company was classified and tabulated. Quantitative and

qualitative analysis was done and inference were drawn in line with objective

of the study.

The chapter delineates the methodology in terms of the research design,

sampling design, questionnaire design, methods of data collection and the

analysis of data. The research design described the conceptual framework

within which the research study has been conducted. The pre-testing of the

questionnaires, their validity and the techniques used for analysis of the final

data are outlined. The chapter explained the methodology of the pilot and the

main study and also highlights the methods and techniques used for the

analysis of data.


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METHODS OF EMPLOYEES

PERFORMANCE APPRAISAL AND

EVALUATION OF THE SYSTEM

FOLLOWED BY HFCL and VODAFONE


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Different methods and techniques are used for evaluating employee

performance in different companies these may be classified into two broad

categories as shown below:

TRADITIONAL & MODERN METHODS

The traditional approach is also known as Traits approach. It is based on the

evaluation of traits in a person. This system may list 10 to 1 5 personal

characteristics such as ability to get along with people, competence,

judgement, initiative, leadership etc. They may also be added work related

characteristics such as job knowledge, Ability to complete an assignment,success in carrying out plans, efforts in cost reduction etc.

Confidential Report

The confidential report relates to the performance, ability and character of the

employee during a year.

Graphic Scales

Rating scale list traits and a range of performance, values for each trait.

Straight Ranking

In straight ranking method every employee is judged as a whole without

distinguishing the rates from his performance.

Paired comparison

In paired comparison method, every person is compared trade wise

with other persons one at a time.


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Grading System

In grading system, employees are given grades according to the judgment of

the rater.

Forced Distribution

The main idea in forced distribution method is to spread ratings in number of

grades.

Check List method

Check list is a list of statements that describe the characteristics and

performance of an employee on the job.

Critical Incident Method

This method attempts to measure workers performance in terms of certain

events or incidents that occurs in the course of work.

Group Appraisal

Under the method, employees are rated by an appraisal group rather than by

an individual.

Modern Methods

Modern firms use the following methods for the performance appraisal.


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Assessment Centre

As assessment centre is a central location where the manager may come

together to participate in job related exercises evaluated by trained observers.

Human Resource Accounting

This method attaches money values to the value of firms internal human

resources and its external customer good will.

Behaviourally Anchored Rating Scales

This method anchors a scale with specific behavioural examples of good or

poor performance.

Management By Objectives

MBO refers to a comprehensive , organization wise goal setting and appraisal

programme.

THE EXISTING PERFORMANCE APPRAISAL SYSTEM BEING

FOLLOWED AT HFCL

HFCL has adopted confidential report method for performance appraisal of its

employees.

In most of the Government departments and public enterprises, performance

appraisal is done through annual confidential reports. These reports differ

from department to department and from level to level.

The confidential report is written for a unit of one year and relates to

the performance, ability and character of the employees during the year. The


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employee who is to apprised never knows his weaknesses and the

opportunities available for overcoming them. In recent years, due to pressure

from Courts and Trade Unions the detail of negative confidential reports are

given to the appraise.

PROCEDURE

In the present appraisal system at HFCL, the appraiser (Reporting Officer) or

the Reviewing officer plays a crucial role in moderating the assessment.

A group of personnel comprising of the appraise superior, the

department Head, Senior member of staff with whom the appraised has

the maximum contacts and the representative from the personnel

department brought together this may be addressed as a committee.

The overall rating is based on the performance of appraise in all the key

performance areas and the achievement of the objective by appraise.

The appraisal process starts with finding the number of the employees

eligible for appraisal in every department.

Then the appraisal form is sent to all employees for staff appraisal.

The employee first does his self appraisal.

After this the re[porting officer appraises the employee on following

parameters.

a). Job knowledge

b). Quality of work

c). Planning and organization


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d). Initiative and drive

e). Intepersonal Relations / Team work

f). Work attitude

g). Sense of responsibility

h). Leadership

Job Knowledge

Under this parameter, it is assessed by the appraiser whether he / she has

professional knowledge appropriate to his status at work and is applying it to

perform his assigned duties.

Quality of Work

For each work certain standards are fixed by the organization and while

appraising his performance, the already defined standards for the respective

level are kept in mind.

Planning And Organising

While appraising performance of an employee, capabilities in regards to

planning in the area of his work are assessed. In addition, organizing skills

achieved by the appraisee to accomplish set goals and objectives are

evaluated and then the rating is awarded by the appraiser.


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Initiative And Drive

For success in any work initiative and drive traits in the worker are very

important. Under this category, capacity of the employee to originate actions

independent of any promoting is evaluated along with his ability to execute

action vigorously and resolutely followed by compelling others to do so.

Interpersonal Relations / Team Work

Works willingly and co-operates loyally with the members of the team is an

essential requirement in a worker for success of a group task. An appraisee is

also assessed for his cordial and tactful behaviour in dealing with others.

Work Attitude

It is an important feature of appraisal in the company to assess for the

employees positive attitude towards his work. A person with negative attitude

is very harmful for an organization.

Sense of responsibility

Appraiser, under the appraisal system, rate employees capability for rational

conduct or his sense of responsibility towards job assigned to him.

Leadership

Assigns specific responsibilities, recognizes assigned employees abilities,

capacities, and limitations are assessed for giving rating to the appraisee.


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Salient Features

The existing appraisal system uses the primary appraisal form as its tool.

The appraisal is followed by a meeting with the immediate superior for

the counseling in which appraisee is given the feed back.

A new feature added in the system is the Critical Incident Approach

System in which appraise is required to maintain a Critical Incident

Diary for all the important incidents related with the performance of

the Appraise. The dairy may be referred to during the time of the

appraisal.

The performance appraisal form is same for all the employees

irrespective of the position they hold or the department they are

serving.

The feed back is verbal and is given by the immediate superior.

Counseling is also held to improve upon the identified week areas.

The appraisal is done on annual basis and takes place in the month of

January every year.

In between quarterly appraisal for variable pay are done.


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DATA

ANALYSIS

AND

INTERPRETATION


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This chapter is devoted to in-depth study and analysis of

primary data collected from the employees of the various

departments of the company. Responses received from respondents

in respect of each question of the questionnaire have been

tabulated, analyzed below to arrive at an interpretation. Out of 50

employees to whom the questionnaire was given. 45 have

responded and submitted the questionnaire duly filled-up.

QUESTION NO. 01

Doyou view PAS is a significant tool for

development of an employee?

Scales

Respondent

of HFCL

Respondent of

Vodafone

Strongly

Agree 38 35

Agree 0 4

Cant Say 0 0

Disagree 7 4

Strongly

Disagree 0 2


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Interpretation

38 out of45 employees selected for the present study in HFCL & in

Vodafone 35 strongly agreed that the performance appraisal system

is the tool for development of an employee. The result shows themost of the employees in the company have faith in the system

which is a positive sign.

84%

0%

0%16

%

0%

Respondent of HFCL

Strongly Agree Agree Cant Say Disagree Strongly Disagree

70%

8%

10%

8% 4%

Respondent of VodafoneStrongly Agree Agree Cant Say Disagree Strongly Disagree


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45

QUESTION NO. 02

Doyou agree that the present PAS isused for the purpose of promotionof

the employee?

Respondentof HFCL Respondent ofVodafone

Strongly

Agree 5 6

Agree 32 31

Cant Say 8 4

Disagree 0 4

Strongly

Disagree 0 0

11%

71%

18%

0%0%

Respondent of HFCL



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Interpretation

Majority 32 in HFCL and 31 in Vodafone of the respondents were of

the view that the existing performance appraisal system in the

company is being used only for the purpose of promotion.Employees

were not sure about the actual use of the system by the

management. This indicates that the employees do not have

confident in the prevailing appraisal system of the company.

The result of the appraisal should be used for the overall

development of the employees by acting for improvement on

areas where the appraisee has earned a low rating.

13%

69%

9% 9%

Respondent of Vodafone



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QUESTION NO. 03

Doyou agree that the present PAS canbe animportant tool for identified

trainingneeds?

Respondent

of HFCL

Respondent of

Vodafone

Strongly

Agree 12 14

Agree 30 28

Cant Say 3 2

Disagree 0 1

Strongly

Disagree 0 0

27%

67%

6%

0%0%

Respondent of HFCL



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Interpretation

The study shows that all the employees have the feeling that the

present performance appraisal method can be used by the company

for identifying the training needs for different levels of employees

were dead sure about this while remaining also agreed to it.

Training needs of an individual employee should be assessed

from his performance rating in respect of various parameters

based on which the performance of an employee is appraised.

31%

62%

5% 2% 0%




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QUESTION NO. 04

Doyou thinkorganization hasdesigned a proper appraisalsystem for you?


Strongly

Agree 10 15

Agree 25 25

Cant Say 7 4

Disagree 2 1

Strongly

Disagree 1 0

22%

56%

16%

4% 2%

Respondent of HFCLStrongly Agree Agree Cant Say Disagree Strongly Disagree


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Interpretation

Study has revealed that about half of the employees have strongly

agreed that the appraisal system designed by the company for them

is appropriate. Some were found to have doubt about it.

33%

56%

9% 2% 0%




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QUESTION NO. 05

Doyou agree that every subordinate is made clear about his role, duties

and responsibilities?


Strongly

Agree 10 17

Agree 20 23

Cant Say 12 4

Disagree 2 1

Strongly

Disagree 1 0

22%

44%

27%

5% 2%

Respondent of HFCL



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Interpretation

Much of the respondent were of the view that the company has

made aware its subordinate staff about their role, duties and

responsibilities. Only 10 and 17 out of total 45 employees have

strongly agreed that they are clear about their duties and

responsibilities.

The employees must be made aware by the company regarding

their specific roles to play at work. They should also be made

clear about their assigned duties and responsibilities towardsaccomplishment of work.

38%

51%

9%

2% 0%




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QUESTION NO. 06

Do the present PAS effectsyour relationship with your subordinates?

Respondent

of HFCL

Respondent of

Vodafone

Strongly

Agree 20 30

Agree 15 10

Cant Say 5 5Disagree 5 0

Strongly

Disagree 0 0

45%

33%

11%

11%

0%

Respondent of HFCL



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Interpretation

The Present study has also revealed that it is feeling of most of the

employees that the existing appraisal system is affecting their

relationship with the subordinates.

The employees need to be given awareness training to educate

them regarding the positive side of the appraisal system and

that the appraisal is not to highlight their weaknesses but to

make an assessment regarding areas where they need some

additional skill improvement training for overall developmentof the employee. Thereafter all the upgraded skill on an

employee will be used for the better productivity at his work

place.

67%

22%

11%

0%0%




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QUESTION NO. 07

Doyou agree the appraiser have the need of

training?


Strongly

Agree 30 30

Agree 15 10

Cant Say 0 5

Disagree 0 0

Strongly

Disagree 0 0

67%

33%

0%0% 0%

Respondent of HFCL



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Interpretation

The study further indicates that the most of the employees feel that

an appraiser needs training. Additional do not wants to give their

comments.Maximum respondents wanted to advocate in favour.

67%

22%

11%

0%0%




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QUESTION NO. 08

Are youscared whenyour superior is fillingyour appraisal form?

Respondent

of HFCL

Respondent of

Vodafone

Strongly

Agree 25 30

Agree 15 10

Cant Say 0 5Disagree 0 0

Strongly

Disagree 0 0

62%

38%

0%0% 0%

Respondent of HFCL



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Interpretation

Study revealed that 30 and 25 out of 45 employees under study

confirmed that they are scared at the time of appraisal process is

going on and they were not at all affected and take it as a routine.

67%

22%

11%

0%0%




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QUESTION NO. 09

Do you think that in the present PAS the appraiser can give biased

appraisal?


Strongly

Agree 15 10

Agree 20 30

Cant Say 5 5

Disagree 5 0

Strongly

Disagree 0 0

33%

45%

11%

11%

0%

Respondent of HFCL



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Interpretation

Finding of the study that majority of the employees have a feeling

that under the existing system of appraisal there are all chances for a

biased reporting.

This finding alarm on need for a change over the present

appraisal system. Such feelings in the employees create

uncertainty of job security in his mind. The system must give a

feeling of faith in the mind of the employees and then only an

employee will be able to deliver the maximum output.

22%

67%

11%

0%0%




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QUESTION NO. 10

Do you think that the reviewing officer can play an important role in

reducing thisbiasness?

Respondent

of HFCL

Respondent of

Vodafone

Strongly

Agree 25 30

Agree 10 10

Cant Say 5 5

Disagree 5 0

Strongly

Disagree 0 0


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Interpretation

Maximum of the 45 sample employees have shown more faith in

the reviewing officer then the reporting officer. Those who have

nothing to say on the issue of biasness of the reporting boss while

recording appraisal rating.

56%22%

11%11

%

0%

Respondent of HFCL


67%

22%

11%

0%0%




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QUESTION NO. 11

Do you think that the accepting officer can play an important role in


Respondent

of HFCL

Respondent of

Vodafone

Strongly

Agree 10 15

Agree 15 10

Cant Say 10 5

Disagree 10 5

Strongly

Disagree 0 0

43%

29%

14%

14%

0%




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Interpretation

Half of the sample employees have shown more faith in the

accepting officer then the reporting officer.Some have nothing to say

on the issue of biasness of the reporting boss while recording

appraisal rating.

22%

34%

22%

22%

0%

Respondent of HFCL



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QUESTION NO. 12

Do you think that the existingPAS help to support the potential of the

employee?


Strongly

Agree 15 20

Agree 5 10

Cant Say 10 5

Disagree 5 10

Strongly

Disagree 0 0

43%

14%

29%

14%

0%

Respondent of HFCL



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Interpretation

The present study has recorded a mixed response to the question

regarding the appraisal system supporting the potential of an

employee. have no comments to give while equal number of

respondents have agreed as well as recorded their disagreement.

The appraisal system needs to assess the potential of the employee

being appraised. This will help utilization of full potential of the

employee and hence, better productivity

45%

22%

11%

22%

0%




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QUESTION NO. 13

Doyou view that the existingPAS is a great importance to the organization

andnot just a paper work?

Respondent of

HFCL

Respondent of

Vodafone

Strongly Agree 20 25

Agree 15

Cant Say 2 2

Disagree 3 5

Strongly

Disagree 5 0


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Interpretation

Most of the employees participating in the study sample consider

that the appraisal system is an important tool with the management

which can be used for a better productivity and growth in the

company.

44%

33%

5%

7%11

%

Respondent of HFCL


56%29%

4%11%

0%




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QUESTION NO. 14

Does the PAS support value,culture andchange?

Respondent of

HFCL

Respondent of

Vodafone


Agree 12

Cant Say 5 7

Disagree 8 4

Strongly

Disagree 2 0

40%

27%

11%

18%

4%

Respondent of HFCL



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Interpretation

Most of the employees assumed it support value,culture and change.

40%in HFCL and 56% in Vodafone

56%20%

15%9

%

0%




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QUESTION NO. 15

Does the high performance staff are easilyidentified?

Respondent of

HFCL

Respondent of

Vodafone


Agree 18

Cant Say 2 7

Disagree 8 4

Strongly

Disagree 5 0

51%27%

14%8% 0%



27%

40%4%

18%

11%

Respondent of HFCL



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Interpretation

In Vodafone 51% are strongly agree and in HFCL 40% are agree.

QUESTION NO. 16

Does the current PAS too time consuming?

Respondent of

HFCL

Respondent of

Vodafone


Agree 15

Cant Say 2 0

Disagree 0 0

Strongly

Disagree 3 7


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73

56%33%

4% 0% 7%

Respondent of HFCL


56%29%

0%

0%

15%




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QUESTION NO. 17

Is performance appraisalis a motivating factor for an employees?

Respondent ofHFCL

Respondent ofVodafone


Agree 5

Cant Say 2 0

Disagree 0 0

Strongly

Disagree 3 5

78%

11%

4% 0% 7%

Respondent of HFCL


67%

22%

0% 0%11%




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QUESTION NO. 18

Isgoalsetting animportant factor for PAS?

Respondent of

HFCL

Respondent of

Vodafone


Agree 3 2

Cant Say 2 0

Disagree 0 3

Strongly

Disagree 2 0

89%

4% 0%7% 0%




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Interpretation

Goal setting is an important factor in performance appraisal system

89% employees are strongly agree and in HFCL 84% employees are

agree on this statement.

84%

7%5% 0% 4%

Respondent of HFCL



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FINDINGS

From the data it is found that the employees of HFCL and

VODAFONE are more satisfied with the performance

appraisal system


VO

DAFON

E are assume performance appraisal systemhas made for the purpose of promotion of employees.


VODAFONE are assume performance appraisal system is

a important tool for the identification of training needs.

It is found that the employees of both the organization are

satisfied with the communication process of their

organization.


VODAFONE are assume performance appraisal system

helps to support the potential of employees more then

HFCL employees.

The equal employees of Vodafone and HFCL assume it is

too timing process


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SUGGESTION

1. Performance appraisal system should be flexible my

means here it should not be complex.

2. Result of the PAS should be made very clear to

employee and properly communicated to the employees.

3. High performing staff should be rewarded properly

so that they could feel motivated

4. Result of PAS should be effective & concrete which

can convey the lacking as well as achievements to

employee.

5. There should be democratic policy adopted by HFCL

so that employee must not fill the appraisal form under

pressure.


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6. Both the companies should provide to appraiser or

they must appoint expert for the PA so that the feeling

should not generate among the employees the appraisal

are incapable and insufficient.

7. HFCL should be followed the ethical way for PA.

8. HFCL should change the designing of the performance

appraisal procedure according to the need of time.


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CONCLUSION

Based on the findings of the present study by critically examining the

effectiveness of performance appraisal system prevailing in the

company using primary data as well as informal discussions with

experts in HRM from industry, conclusions were drawn and the

following recommendations are made.

1. The result shows that most of the employees in the

company have principally faith in the system which is a

positive sign and leave scope for easy adoption.

2. Employees Performance Appraisal System must focus on

the performance and future potential of the employee and

not only for judging the caliber of an employee so as todecide salary increment.

3. The result of the appraisal should be used for the overall

development of the employee by acting for improvement on

areas where the concern employee has earned a low rating.

4. Training needs of an individual employee should be assessed

from his performance rating in respect of various

parameters based on which the performance of an

employee is appraised.


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5. The employees must be made aware by the company

regarding their specific roles to play at work. They should

also be made clear about their assigned special duties and

responsibilities towards accomplishment of work.

6. It may be appropriate to appraise performance of an

employee in manufacturing sector on annual basis.

However, in service sector appraisal need to be on quarterly

basis.


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Bibliography

Kothari, C.R. (1993), Research Methodology, Wiley Eastern

Limited, New Delhi.

Gupta, Shashi K., and Joshi Rosy (2004), Human Resource

Management, Kalyani Publishers, New Delhi

Koontz, Harold and Weihrich, Heinz (1990) essentials of

Management, Fifth Edition, McGraw Hill Publishing Company, New

Delh.

Gupta, Shashi J. and Hoshi Rosy (2005), Organizational

Behavior, Kalyani Publishers, New Delhi.

www.hfclconnect.com Website of HFCL Infotel Limited.


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Annexure I

Questinnaire for the Employees of HFCL and Vodafone to Assess

Effectiveness of the Prevailing Performance Appraisal System of the

Company

Note:

1. The study is purely for the academic purpose and the

findings will not be used for any other purpose. You may

kindly give your frank views.

2. Please tick mark the most appropriate answer.

3. Abbreviation of PAS has been used for Performance

Appraisal System throughout the questionnaire.


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Questions

1.Doyou view PAS is a significant tool for

development of an employee?

Strongly Agree____ Agree____ Cant Say _____ Disagree

______Strongly Disagree _____________

2.Do you agree that the present PAS is used for the purpose of

promotionof the employee?



3.Doyou agree that the present PAS canbe animportant tool for identified

trainingneeds?




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4.Do you think organization has designed a proper appraisal system for

you?



5.Do the present PAS effectsyour relationship with your subordinates?



6.Doyou agree the appraiser have the need of

training?



7.Are youscared whenyour superior is fillingyour appraisal form?




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8.Do you think that in the present PAS the appraiser can give biased

appraisal?



9.Do you think that the reviewing officer can play an important role in




10.Doyou think that the existingPAS help tosupport the potentialof the

employee?



11.Do you view that the existing PAS is a great importance to the

organization andnot just a paper work?

Strongly Agree____ Agree____ Cant Say _____

Disagree ______Strongly Disagree _____________


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12.Does the PAS support value,culture andchange?



13.Does the high performance staff are easilyidentified?



14.Is performance appraisalis a motivating factor for an employees?



15.Isgoalsetting animportant factor for PAS?



16.Does the current PAS too time consuming?




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17.Doyou think that the accepting officer can play an important role in




18.Doyou agree that everysubordinate is made clear about his role, duties

and responsibilities?



Final Project Ofk Ks

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