INTRODUCTION ABOUT THE INDUSTRY

Life is very fragile and death is a certainty. We cannot control the uncertainties of life. But, we can cover the risks surrounding us. Life insurance, simply put, is the cover for the risks that we run during our lives. It protects us from the contingencies that could affect us.

Life insurance is not for the person who passes away, it for those who survive. It is the responsibility of every bread earner to guard against the events that could affect the family in the unfortunate circumstance of his / her demise. Thus, having a life insurance policy is very vital. Before going for a life insurance policy it is imperative that you know about various types of life insurance policies.

Life insurance is an essential part of financial planning. The main purpose of purchasing life insurance is to ensure that your dependents are financially protected in the event of death. Life insurance is a way to plan for the future so you need to be sure that the coverage you purchase fits your needs.

There are many options available to you when purchasing life insurance. Some policies provide coverage for your lifetime and others provide coverage for a specific number of years. With certain policies, you are able to combine different kinds of insurance and even build up your cash value. Your choice should be based on your needs and what you can afford.

DIFFERENT POLICIES
Term Life Insurance

Term life insurance is an insurance policy that is in effect for a specific period of time. If the insured dies within that timeframe, the beneficiary of the policy receives the death payment. However, if the insured survives that period of time, the beneficiary receives nothing and the policy is closed. Term life also provides the ability to convert to a permanent kind of coverage at a later time. The main reasons people buy term life insurance include:

Coverage for a specific amount of time until they are able to build up their assets. Coverage for the amount of time the mortgage is for so in the event of an untimely death, the mortgage is taken care of.

Coverage for those that cannot afford a permanent policy, especially newlyweds and new parents.

Permanent Life Insurance

Permanent life insurance covers a longer period of time than term life or for the entire life of the insured. This kind of insurance combines death benefits with a savings component. The amount of money that is not used to cover the amount of the insurance is invested by the company and builds up a cash value that may be used in a variety of ways. You may borrow against a policy's cash value by taking a policy loan. If you don't pay back the loan and the interest on it, the amount you owe will be subtracted from the benefits when you die or from the cash value if you stop paying

premiums and take out the remaining cash value. The cash may also be used to increase your retirement income or to help pay for needs such as a child's tuition without canceling the policy. However, to build up this cash, you'll pay higher premiums. There are several types of permanent life insurance, including whole, universal, variable universal, and survivorship universal.

Whole Life Insurance

A whole life insurance policy remains in full force and effect for the life of the insured, with premium payments being made for the same period. Some whole life policies let you pay premiums for a shorter period such as 20 years, or until age 65. Premiums for these policies are higher since the premium payments are made during a shorter period of time.

Universal Life Insurance

The premiums of a universal life insurance policy are split in two ways. The premium you pay goes toward covering the cost of the insurance policy and the remaining balance is invested and earns interest on a tax deferred basis. With this type of life insurance you also receive a guaranteed minimum interest rate on the balance that is invested.

Variable Life Insurance

Variable life insurance is an investment-oriented whole life insurance policy that provides a return linked to an underlying portfolio of securities. The portfolio is a

group of mutual funds including common stocks, bond funds, and money market funds. This type of life insurance offers fixed premiums and a minimum death benefit. The better the total return on the investment portfolio, the higher the death benefit or value of the variable life policy.

Variable Universal Life Insurance

Variable universal life insurance is a combination of universal life insurance and variable life insurance in that excess interest credited to the cash value account depends on investment results of separate accounts (equities, bonds, real estate, etc.). You have a choice as to how the cash value is invested -- stock and bond mutual funds. However, there is no guaranteed minimum interest rate with a universal life insurance policy.

Survivorship Universal Life Insurance

Survivorship universal life insurance provides a policy in which two people are covered on one policy. The death benefit is paid upon the second death. The premiums for this joint life policy are significantly lower than a regular policy. Many people take this type of life insurance to help pay estate taxes after the deaths of both a husband and wife.

A BRIEF HISTORY OF THE INSURANCE INDUSTRY

The origin of insurance is very old. The time when we were not even born; man has sought some sort of protection from the unpredictable calamities of the nature. The basic urge in man to secure himself against any form of risk and uncertainty led to the origin of insurance. The insurance came to India from UK; with the establishment of the Oriental Life Insurance Corporation in 1818. The Indian life insurance company act 1912 was the first statutory body that started to regulate the life insurance business in India. By 1956 about 154 Indian, 16 foreign and 75 provident firms been established in India. Then the central government took over these companies and as a result the LIC was formed. Since then LIC has worked towards spreading life insurance and building a wide network across the length and the breadth of the country. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. In 1957 General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. In 1972 The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with the effect from 1st January 1973. it was after this that 107 insures amalgamated and grouped into four companies viz. the National Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

LIFE INSURANCE BASICS

We buy life insurance because we want to make sure that our loved ones, especially dependents, remain financially secure after we die. Income replacement is the number1 reason why people buy life insurance. Non-working caregivers also have an important, and oft overlooked economic value that should be covered by life insurance. Life insurance is also purchased by those interested in achieving specific business or estate transfer goals.

There are several choices when it comes to buying life insurance and there are huge pricing differences in the market among different companies offering identical coverage. Policies are now available from more than 1,500 life insurance companies in the United States. Most financial planners recommend that each family income provider carry no less than ten times their annual income in life insurance. Heres an orderly way to go about shopping for life insurance: 1) assess your life insurance needs, 2) decide on the most appropriate policy type, 3) set high standards for the financial stability ratings of your insurance company and, then 4) shop until you drop to find the best price.

Life insurance is a long-term proposition, which means that you should pay particular attention, at time of purchase and throughout the life of the policy, to the financial stability ratings of your life insurance company. While the average U. S. adult shops for life insurance once every seven years, its not uncommon for people to keep life policies in force for decades.

ASSESSING YOUR LIFE INSURANCE NEEDS

The first step in life insurance planning is to analyze your life insurance needs or rather, the economic needs of the dependents left behind:

Before purchasing a life insurance policy, you should consider your financial situation and the standard of living you want to maintain for your dependents or survivors. For example, who will be responsible for your final medical bills and funeral costs? Would your family have to relocate or otherwise change their standard of living? The assumption of immediate death is necessary to determine the current life insurance needs for the family or individual.

Beyond the initial readjustment period, consideration has to be given to the longer term financial needs of the remaining family members. Items of consideration should include dependency period income for children, income for the surviving spouse, mortgage and other debt payoffs, college education funds and an additional emergency fund.

Because life insurance needs change over time, your life insurance program should be reevaluated periodically. We recommend a review at least once every five years or whenever you experience a major life event such as change income or assets, marriage, divorce, the birth or adoption of a child, or purchase of a major item such as a house or business.

The Illinois Department of Insurance points out the reasons you might buy life insurance will vary, depending on your age, financial situation and other factors. Listed below are some examples:

Single person with no dependents: Funeral expenses; medical bills; debts, such as credit cards or student loans; elderly parents who may be dependent upon you for support. Note: Buying life insurance at a young age is cheaper. As you get older or possibly incur a serious health condition, it will be more expensive or difficult to buy a policy.

Single person with dependents: Funeral expenses; medical bills; outstanding debts; caretaker expenses for your surviving dependents; education costs for surviving children.

Couple with no children: Funeral expenses; medical bills; outstanding debts, especially mortgage or car payments.

Couple with children: Funeral expenses; medical bills; outstanding debts, especially mortgage payments; child-rearing expenses; education costs. Note: Even if one partner does not work outside the home, you may want to consider life insurance to help pay for childcare or other services performed by that partner. Older couple: Funeral expenses; medical bills; impact on spendable income; outstanding debts, such as a new home, second vacation home, or recreational vehicle; impact on assets you may want to leave for children or grandchildren

In theory, you should have a declining need for life insurance as you age because fewer people remain dependent upon you for income support. Exception to this rule would be for circumstances in which you want to protect a business entity or pay estate taxes for heirs. If the purpose of buying life insurance is to pay estate taxes, then youll only want coverage that is guaranteed for the remainder of your life and that of your spouse as well.

COMPANY PROFILE COMPANY PROFILE

MAX INDIA LTD.

Max India Limited is a multi-business corporate, driven by the spirit of enterprise, focused on Knowledge, People and Service oriented businesses of Healthcare and Life Insurance. Max also maintains interests in Clinical Research, IT and Telecom Services, and Specialty Plastic Products businesses Healthcare Life Insurance Clinical Research IT & Telecom Services Specialty Plastic Products Healthcare, at present, is our local business, centered in and around Delhi. Life Insurance has a national reach. Information Technology and Clinical Studies are international in scope. Taken together, they are the 'flags' of Max:

LOCAL -Max Healthcare -Max Ateev NATIONAL -Max New York Life INTERNATIONAL -Neeman Medical International -Max Ateev

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Max is a young, modern Indian corporation, with a strong capability of recognizing opportunities ahead of their time. Max has been able to form and strengthen international alliances with global leaders across a wide spectrum of management activity. Max India is led by a skilled team of professional managers and is recognized for commercially successful manufacturing and service delivery businesses. Max has created enviable history marked by tremendous growth in various fields and has been ranked among the "Top Two Hundred Most Valuable Indian Companies" by Business India (October 2000). Max's deep understanding of Indian consumer combined with a large pool of professionals and an enterprising spirit have helped complement its relationship with industry leaders of global stature like New York Life International LLC. of U.S.A. With a unique experience of growing through the 'JV route' Max is proud of the excellent relations it has with each of its partners. Max India already has successful and enduring partnerships with some of the most respected specialist organizations in the world, some of which are Gist Brocades of the Netherlands, Atotech Deutschland GMBH, Germany, and Hutchinson Telecommunications Ltd., Hong Kong, Singapore General Hospital, Harvard Medical International Inc., USA., Lockheed Martin Global Telecommunications.

VISION

To be one of India's most admired corporate for service excellence and a successful multibusiness enterprise for its stakeholders i.e. customers, shareholders, employees, JV partners, etc.

MISION

Establish niche service business in 2 areas of Healthcare, and Life Insurance. Rank in top 3 players in each niche. Partner with "Best in Class" world leaders. Maintain Traditional Business

NEW YORK LIFE

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New York Life Insurance Company, has been ranked at Fortune 68, in the 2005 Fortune 500 listing of companies, is one of the largest providers of life insurance coverage in America. Founded in 1845, the Company has over US$215 billion in assets under management. The mission of New York Life is to maintain its superior 'financial strength', adhere to the highest standards of 'integrity' and demonstrate 'humanity' by treating its customers, agents and employees with compassion, consideration and respect. New York Life Insurance Company has been among the highest rated companies by leading independent rating agencies including - A.M. Best Company (A++), Fitch (formerly Duff & Phelps) (AAA), Moody's Investors Service (Aa1) and Standard & Poor's (AA+) The company has its headquarters in New York City and has operations in the United States, Argentina, Hong Kong, SAR, India, Indonesia, Mexico, The Philippines, South Korea, Thailand and Taiwan. The company maintains representative offices in the People's Republic of China and Vietnam. For the last 47 years, New York Life has had the highest number of agents who qualify as members. As a leader in the insurance industry, New York Life continues to bring to its operations new management concepts, advanced technologies, new distribution and training systems and innovative insurance products of the 'Million-Dollar Round Table'. The MDRT is the world's most prestigious organization of insurance sales professionals.

MAX NEW YORK LIFE INSURANCE CO. LTD.

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Max New York Life Insurance Company Ltd is a Joint Venture between New York Life, a Fortune 100 company and Max India Limited, one of India's leading multibusiness corporations. Through its wide network of highly competent life insurance Agent Advisors and flexible products and solutions, Max New York Life is committed to creating a partnership for life with its customers in India. In line with its values of financial responsibility, Max New York Life has adopted prudent financial practices to ensure safety of policyholder's funds. It invests only in debt instruments and meets both Indian and international disclosure norms. The Company's paid up capital is Rs.527crore, which makes it among the highest capitalized life insurer in India.

Max New York Life has identified Individual agents as its primary channel of distribution. The Company places a lot of emphasis on its selection process, which comprises four stages - screening, psychometric test, career seminar and final interview. The agents are trained in-house to ensure optimal control on quality of training. Max New York Life invests significantly in its training programme and each agent is trained for 152 hours as opposed to the mandatory 100 hrs stipulated by the IRDA before beginning to sell in the marketplace. Training is a continuous process for agents at Max New York Life and ensures development of skills and knowledge through a structured programme spread over 500 hours in two years. This focus on continuous quality training has resulted in the company having amongst the highest agent pass rate in IRDA examinations and over 126 of its agents becoming MDRT members in 2005, which is among the highest among the private life insurers in the country. Max New York Life offers a suite of flexible products. It now has 22 life insurance products and 9 options & 8 riders that can be customized to over 400 product combinations enabling customers to choose the policy that best fits their need. The 22 products are - Life Maker - Investment Plan, Life Maker - Pension Plan, Whole Life Par, Level Term, Term Renewable and Convertible, Super saver bond, Life Gain Endowment Plan, Life Pay Money Back Plan, 20 years Endowment Plan,

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Life Partner Plus (Participation) Policy, Easy Life - Retirement Plan, Endowment to age 60 Plan, Life Maker - Pension Plan, Immediate Annuity, Children's endowment 18 & 24, Stepping Stones - A Child Money Back Plan, Amsure Bonus Builder, Amsure Future Builder, Amsure Business Builder, Amsure Future Builder, Max Mangal Endowment plan and Max Vriksha Money Back.

Tailoring a policy to best-suit individual requirements, even before a policy is sold, a Personal Insurance Plan gives complete details of a policy with a year-on-year summary of the premiums to be paid, as well as the likely benefits that may accrue. Also all policies come with a 'policy review period' offer that allows unconditional return of the policy within 15 days from date of receipt.

The 9 Options & Riders are - Option to Participate in Progressive Bonus, Guaranteed Insurability Option, Waiver of Premiums, Spouse Insurance, Personal Accident Benefit, Dread Disease, Payor Benefit, Term Rider, 5 Year Term Renewable & Convertible Rider

MISSION
Become one of the top 3 new life insurance companies Become a national player dominant in north India Be the brand of first choice among all stake holders Become the employer of choice. Be the principal of choice for agents.

Max New York Life is a young vibrant company proud of the excellent track record it has created for itself in a relatively short period of time. MNYL has today become one of the most aggressive players in the Insurance services domain. A key factor in our success has been our ability to attract some of the most talented people in any industry. MNYL in many ways is a lens to India. We represent rich diversity in our workforce and this is reflected in our open work environment. Within this diversity we have successfully created

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a strong emotional bond, which threads everyone together irrespective of his or her function, location, seniority or background. This identification with one organization and one purpose draws its strength from our simple and powerful Vision statement, which is to become the "Most Admired Life Insurance Company in India". By developing structure, systems and a workplace culture that provides challenging jobs, rewards performance and delivers opportunities continuously, MNYL is striving to get the best out of its most valuable asset its people. Our "in house culture recipe" has some of the finest ingredients going into its making. Some of the more prominent aspects of our culture are stated belowCustomer comes first Do it right the first time Bias for result oriented action Financial strength and discipline Clarity of purpose International quality standards Inclusive Meritocracy Learning opportunities Fun at work Commitment to published value system At MNYL, we endeavor to create an environment where everyone can reach their full potential and to do their jobs effectively for our customers. We encourage learning at all levels and career stages which support personal and professional development. The organization provides all the right elements that you need to get to the top with ample fun and learning opportunities as added advantage. We believe that work is fun, when you enjoy it the most. To make work more fun, we provide a dynamic, fast paced and flexible work environment to our people. We nurture the relationships through celebrating our people's happiness, hobbies, achievements, and festivals through LY Fun club, which stands for Life Youth and Fun.

Finally it would be appropriate to say that the cornerstones for all our interactions and behaviors are the MNYL Values and Beliefs. These are non-negotiable behaviors that breathe life and vigor into the Organization and its Vision. Our values influence the way we work and interact with our colleagues; as well as the way we serve our clients and engage with all our

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stakeholders. MNYL recognizes the need for appreciation for demonstrating our core values thru behaviors. We provide a platform in the form of Cultural Ambassador to recognize employees demonstrating our values of Caring, Honesty, Excellence, Knowledge, Integrity, and Teamwork.

Possibly then the best way to explain the MNYL culture would be to share our MNYL Values and Beliefs.

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MAX NEW YORK LIFE VALUES AND BELIEFS

KNOWLEDGE
Knowledge constitutes expertise and our expertise is in helping people protect themselves. Perfectly combining global expertise with local knowledge, we are the Indian life insurance specialists. Max New York Life believes that for knowledge to be of value it must be focused, current, tested and shared.

CARING
Max New York Life is redefining the life insurance paradigm to focus on the needs of customers. The service process is responsive, personalized, humane and empathetic. Every individual who represents the company is for us our brand champion

HONESTY
Max New York Life is redefining the life insurance paradigm to focus on the needs of customers. The service process is responsive, personalized, humane and empathetic. Every individual who represents the company is for us our brand champion.

EXCELLENCE
Excellence at Max New York Life implies the ability to perform at a consistently high level. Focused on the value of continuous improvement in people, processes and

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the organization, the company strives for the highest standards of quality in every aspect of its business. No. of cities No. of Offices No. of Agents No. of Policies Sum assured 37 57 13000 + 8, 00,000 + 23,500 cr. +

MAX NEW YORK LIFE- GROWING PRESENCE:

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Fig. 5

ACHIEVEMENTS

MNYL is the first life insurance company in India to be awarded the ISO 9001: 2000 certification. MNYL was among the top 25 companies to work with in India, according to 2003 Business World Magazine, Great Workplaces In India, MNYL was ranked at the 20th position. This survey is the local version of the Great Places to Work survey carried out every year in 22 countries.

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 We were among top five most respected private life insurance companies in India according to 2004' Business World Most Respected survey. It makes it more special as that year insurance as a category was included for the first time.

MDRT (MILLION DOLLAR ROUND TABLE)

The MDRT was founded by a group of dedicated agent leaders. In a sense, it may be said that the field force of the business, despairing of company managements sales centric approaches in agent education and training, turned to self-organised efforts in promoting self-education philosophy and concepts. Thinking field men foresaw misfortune to the industry itself if the faults of the agency system were continued. They also recognised that their plans must permeate the whole industry to become effective and it would be necessary, therefore, to enlist the help of home offices. MDRT is a world wide organization of the top producers of life insurance sales. 74 nations and territories participate in it. New York Life is the no.1 in MDRT membership 50 years in a row.

Max New York Life leads the MDRT among Indian private insurers. Max New York Life is in top 100 MDRT global list ranked at the 49th position. 201 Max New York Life agent advisors have qualified 2006 MDRT for the meeting to be held in San Diego.

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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, pay increase.

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OBJECTIVES OF THE STUDY

This project is aim at studying the system of performance appraisal. Performance appraisal is the most significant and indispensable tool for the management as it provides useful information for decision making in the area of promotions and compensation reviews.

To carry out the study of Max Life Insurance, we framed the following objectives

1. Identification of the technique of performance appraisal followed in Max Life Insurance.

2. Employee attitude towards the present appraisal system.

3. To identify and know the area for improvement system.

4. Review of the current appraisal system in order to:

Enhance productivity Attain global standards

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

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PERFORMANCE APPRAISAL SYSTEM INTRODUCTION TO THE TOPIC

Human Resource (or personnel) management, in the sense of getting things done through people, is an essential part of every managers 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 clich, which no member of any senior management team would disagree with. Yet, the realities for many organizations are that their people remain undervalued, under trained and underutilized.

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.

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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

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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.

Performance Appraisal Performance evaluation should be a continuing process throughout the year, with a formal performance evaluation interview conducted annually. The intent is to communicate expectations, provide constructive feedback, document accomplishments, compare current performance against

expectations and jointly formulate performance development plans. Training and development Training and development -- or "learning and development" as many refer to it now -- is one of the most important aspects of our lives and our work. (Many people view "training" as an activity that produces the result or outcome of "learning" -- and learning is typically viewed as new knowledge, skills and competencies or abilities.) In our culture, we highly value learning. Yet, despite our having attended many years of schooling, many of us have no idea how to carefully design an approach to training and development.

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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 employees excellence in matters pertaining to his present job and his potential for a better job. CHARACTERISTICS 1. 2. Performance Appraisal is a process. It is the systematic examination of the strengths and weakness of an employee in terms of his job. 3. 4. It is scientific and objective study. Formal procedures are used in the study. 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 an employee. PROCESS The process of performance appraisal: 1. 2. Establishing performance standards Communicating the Standards

3. Measuring Performance

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4. Comparing the actual with the standards 5. 6. Discussing the appraisal Taking Corrective Action

LIMITATIONS 1. 2. 3. 4. 5. Errors in Rating Lack of reliability Negative approach Multiple objectives Lack of knowledge

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METHODS OF PERFORMANCE APPRAISAL The foregoing list of major program pitfalls 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. 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

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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. 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 so familiar to most managers that I will not dwell on it here. 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

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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 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 as shown below, the employee who is highest on the characteristic being measured and the one who is the lowest are indicated. Then choose 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.

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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? 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."

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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.

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 selfmonitoring. Variable objectives may cause employee confusion. It is also possible that fluid objectives may be distorted to disguise or justify failures in performance.

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Benefits of Performance Appraisals

Measures an employees 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. 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 organizations 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: -

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1. 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. 2. 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. 3. 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 as 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.

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4. 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. 5. Primacy and Regency effects: - The rater's rating is heavily influenced either by behaviour 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. 6. 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. 7. Spillover effect: - This refers to allowing past performance appraisal rating to unjustifiably influence current ratings. Past ratings, good or bad, result in

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similar rating for current period although the demonstrated behaviour does not deserve the rating, good or bad. 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 normalization / performance appraisal process Address employee concerns / queries on performance rating, in consultation with the reviewer.

b) Reviewer (Reporting Managers Reporting Manager) Discuss with the reporting managers on the behavioral traits of all the employees for whom he / she is the reviewer 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

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Owns the performance rating of every employee in the department.

d) HR Head

Secretary to the normalization committee Assists HODs / 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 Reviews the performance ratings proposed by the HODs, 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

KEY CONCEPTS IN PMS In order to understand the Performance Management System at MAX LIFE

INSURANCE, some concepts need to be explained which play a very important role in using the PMS successfully. They are: KRAS (KEY RESULT AREAS): The performance of an employee is largely dependent on the KRA score achieved by the employee during that particular year. Thus, it is necessary to answer a few basic questions i.e. What are the guidelines for setting the KRAs for an employee?

38

How does an employee write down his KRAs for a particular year?

financial

KRAs: The Four Perspectives.

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. MAX LIFE INSURANCE 2010 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. EC, SC, C and PC. 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

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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.

PERFORMANCE RATING PROCESS

EXCEPTIONAL CONTRIBUTOR (EC) SIGNIFICANT CONTRIBUTOR (SC)

Performs

consistently

and

Performs above expectations in all areas

substantially above expectations in all areas Achieves a final score greater than or equal to 115%

Achieves final score between 100-114%

Versatile in his/ her area of operation

Consistently delivers on stretch targets

Develops creative solutions and require little / minimal supervision

Is proactive Spots and anticipates problems, implements solutions

Sets examples for others Take ownership of own development

Sees and exploits opportunities Delivers ahead of time

Coaches others

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 Sees

the

wider

picture-impacts

Demonstrates business initiative Is self motivated Supportive team player Leads own team very effectively Demonstrate functional initiative

across business Focuses on whats 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 feedback. Able to establish and lead crossfunctional teams open and honest

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PROJECT REPORT ON "PERFORMANCE APPRAISAL" LITERATURE REVIEW AND CONCEPT FORMULATION

Human Resource (or personnel) management, in the sense of getting things done through people, is an essential part of every managers 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 clich, 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. Following are the various functions of Human Resource Management that are essential for the effective functioning of the organization: 1. 2. 3. 4. 5. Recruitment Selection Induction Performance Appraisal Training & Development

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PROCESS OF PERFORMANCE APPRAISAL

STEPS OF PERFORMANCE APPRAISAL

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ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDS Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators. MEASURING THE ACTUAL PERFORMANCE The most difficult part of the performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the

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appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work. COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance. DISCUSSING RESULTS The result of the appraisal is communicated and discussed with the employees on oneto-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better. DECISION MAKING The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related

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HR

decisions

like

rewards,

promotions,

demotions,

transfers

etc.

PURPOSE OF PERFORMANCE APPRAISAL Performance Appraisal is being practiced in 90% of the organizations worldwide. Self-appraisal and potential appraisal also form a part of the performance appraisal processes. Typically, Performance Appraisal is aimed at: To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. To diagnose the training and development needs of the future. It provides information to assist in the HR decisions like promotions, transfers etc.

Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.

To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.

To reduce the grievances of the employees. Helps to strengthen the relationship and communication between superior subordinates and management employees.

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Challenges of Performance Appraisal

In order to make a performance appraisal system effective and successful, an organization comes across various challenges and problems. The main challenges involved in the performance appraisal process are: Determining the evaluation criteria Identification of the appraisal criteria is one of the biggest problems faced by the top management. The performance data to be considered for evaluation should be carefully selected. For the purpose of evaluation, the criteria selected should be in quantifiable or measurable terms. Create a rating instrument The purpose of the performance appraisal process is to judge the performance of the employees rather than the employee. The focus of the system should be on the development of the employees of the organization.

Lack of competence Top management should choose the raters or the evaluators carefully. They should have the required expertise and the knowledge to decide the criteria accurately. They should have the experience and the necessary training to carry out the appraisal process objectively.

Errors in rating and evaluation Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing the evaluators rating for all other traits) etc. may creep in the

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appraisal process. Therefore the rater should exercise objectivity and fairness in evaluating and rating the performance of the employees. Resistance The appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. Therefore, the employees should be communicated and clearly explained the purpose as well the process of appraisal. The standards should be clearly communicated and every employee should be made aware that what exactly is expected from him/her.

PRE-REQUISITES FOR EFFECTIVE & SUCCESSFUL PERFORMANCE APPRAISAL The essentials of an effective performance system are as follows: 1. Documentation means continuous noting and documenting the

performance. It also helps the evaluators to give a proof and the basis of their ratings. 2. Standards / Goals the standards set should be clear, easy to understand, achievable, motivating, time bound and measurable. 3. Practical and simple format - The appraisal format should be simple, clear, fair and objective. Long and complicated formats are time consuming, difficult to understand, and do not elicit much useful information.

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4. Evaluation technique An appropriate evaluation technique should be selected; the appraisal system should be performance based and uniform. The criteria for evaluation should be based on observable and measurable characteristics of the behavior of the employees. 5. Communication Communication is an indispensable part of the performance appraisal process. The desired behavior or the expected results should be communicated to the employees as well as the evaluators. Communication also plays an important role in the review or feedback meeting. Open communication system motivates the employees to actively participate in the appraisal process 6. Feedback The purpose of the feedback should be developmental rather than judgmental. To maintain its utility, timely feedback should be provided to the employees and the manner of giving feedback should be such that it should have a motivating effect on the employees future performance. 7. Personal Bias Interpersonal relationships can influence the evaluation and the decisions in the performance appraisal process. Therefore, the evaluators should be trained to carry out the processes of appraisals without personal bias and effectively.

MANAGERIAL ETHICS IN PERFORMANCE APPRAISAL Performance appraisal system should be effective as a number of crucial decisions are made on the basis of score or rating given by the appraiser, which in turn, is heavily 50

based on the appraisal system. Appraisal system, to be effective, should possess the following essential characteristics: Reliability and validity: Appraisal system should provide consistent, reliable and valid information and data, which can be used to defend the organization-even in legal challenges. If two appraisers are equally qualified and competent to appraise an employee with the help of same appraisal technique, their ratings should agree with each other. Then the technique satisfies the condition of inter-rater reliability. Appraisals must also satisfy the condition of validity be measuring what they are supposed to measure. For example, if appraisal is made for potential of an employee for promotion, it should supply the information and data relating to potentialities of the employee to take up higher responsibilities and carry on activities at higher level.

Job Relatedness: The appraisal technique should measure the performance and provide information in Job related activities/areas.

Standardization: Appraisal forms, procedures, administration of techniques, rating etc. should be Standardized as appraisal decisions affect all employees of the group.

Practical Viability: The techniques should be practically viable to administer, possible to implement and Economical regarding cost aspect.

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Legal Sanction: It should have compliance with the legal provisions concerned of the country.

Training and Appraisers: Because appraisal is important and sometimes difficult, it would be useful to provide training to appraisers namely insights and ideas on rating, documenting appraisals, and conducting appraisal interviews. Familiarity with rating errors can improve rater performance and this may inject the needed confidence in appraisers to look into performance ratings more objectively. Open Communication: Most employees want to know how well they are performing on the job. A good appraisal system provides the needed feedback on a continuing basis. The appraisal interviews should permit both parties to learn about the gaps and prepare themselves for future. To this end, managers should clearly explain their performance expectations to their subordinates in advance of the appraisals period. Once this is known it becomes easy for employees to learn about the yardsticks and, if possible, try to improve their performance in future.

Employee Access to Results: Employees should know the rules of the game. They should receive adequate feedback on their performance. If performance appraisals are meant for improving employees performance, then withholding appraisals results would not serve any purpose. Employees simply could not perform better without having access to this

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information. Permitting employees to review the results of their appraisal allows them to detect any errors that may have been made. If they disagree with the evaluation, they can even challenge the same through formal channels. It follows then that formal procedures should be developed to enable employees who disagree with appraisal results which are considered to be inaccurate or unfair. They must have the means for pursuing their grievances and having them addressed objectively. When management uses it as a whip or fails to understand its limitations, it fails. The key is not which forms or which method is used. Performance appraisal should be used primarily to develop employees as valuable resources. Only then it would show promising results.

ELECTRONIC PERFORMANCE MONITORING Electronic performance monitoring refers to the use of technology to monitor the employees performance.

Organizations across the world are incorporating the use of various advanced technologies for all functions at all levels. Many organizations have incorporated technologies in the performance appraisal and management processes. The electronic and computerized systems are being used to monitor and evaluate the performance of the employees. The concept of electronic performance management has been the latest trend in performance surveillance in the foreign countries where almost every job has the potentials of being monitored electronically. But with the increasing number of MNCs, the trend is catching up fast in India.

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With the organizations using the latest technologies and soft wares, electronic performance monitoring supports comprehensive, qualitative, and subjective assessment of the individuals performance. The main reasons for practicing electronic performance monitoring are

It improves productivity and the quality of work Subjective work evaluation Compliance with the organizational policies and the local laws Helps in cost-control in the company Helps in the security of the company information.

Despite all its advantages, the arguments given against the use of electronic performance monitoring is that such systems interfere in the privacy of the employees and some employees may take it against their dignity.

Using such system can have both positive and negative effects on the organizational health. It is argued that, to ensure the positive effects of electronic performance monitoring:

The employees should be explained and communicated clearly about the system:

The employees suggestions should be taken in designing the system The employees should be involved in the implementation of the system The organization should not solely rely on the system for the data on employees performance.

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The system should be supported by effective two-way communication and feedback.

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PERFORMANCE AND ITS EFFECTIVENESS

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PERFORMANCE APPRAISAL METHODS

Tools of Performance appraisal methods include 11 methods / types which are as follows: 1. CRITICAL INCIDENT METHOD

The critical incidents for performance appraisal is a method in which the manager writes down positive and negative performance behavior of employees throughout the performance period

2. WEIGHTED CHECKLIST

This method describe a performance appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs

3. PAIRED COMPARISON ANALYSIS Paired comparison analysis is a good way of weighing up the relative importance of options. A range of plausible options is listed. Each option is compared against each of the other options. The results are tallied and the option with the highest score is the preferred option.

4. GRAPHIC RATING SCALES The Rating Scale is a form on which the manager simply checks off the employees

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level of performance. This is the oldest and most widely method used for performance appraisal. 5. ESSAY EVALUATION

This method asked managers / supervisors to describe strengths and weaknesses of an employees behavior. Essay evaluation is a non-quantitative technique

this method usually used with the graphic rating scale method.

6. BEHAVIORALLY ANCHORED RATING SCALES

This method used to describe a performance rating that focused on specific behaviors or sets as indicators of effective or ineffective performance.

It is a combination of the rating scale and critical incident techniques of employee performance evaluation.

7. PERFORMANCE RANKING METHOD

Ranking is a performance appraisal method that is used to evaluate employee performance. Manager will compare an employee to another employee, rather than comparing each one to a standard measurement.

8. MANAGEMENT BY OBJECTIVES (MBO)

MBO is a process in which managers / employees set objectives for the employee, periodically evaluate the performance, and reward according to the result. MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods)

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9. 360 DEGREE PERFORMANCE APPRAISAL

360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them.

10. FORCED RANKING (FORCED DISTRIBUTION)

Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution. For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and 10 percent in the bottom.

11. BEHAVIORAL OBSERVATION SCALES

Behavioral Observation Scales is frequency rating of critical incidents that worker has performed.

SAMPLE FORMS OF PERFORMANCE APPRAISAL SYSTEM

Samples / examples of performance appraisal are popular in staff / employee appraisal with organizations, human resource department, managers. This information will help us develop effective Performance appraisal.

We can use free sample / example job specifications as follows:

1. Performance appraisal form This is general form for performance appraisal. 2. Manager performance appraisal form This form is a performance appraisal sample used for manager position.

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3. Employee performance appraisal form This form is a performance appraisal sample used for staff position. 4. Essay evaluation form This form is based on essay evaluation method of performance appraisal. 5. Forced Choice form This form is a performance appraisal sample based on forced choice method of performance appraisal. 6. Weighted checklist form This form is based on weighted checklist method of performance appraisal. 7. Rating scale form This form is a performance appraisal sample based on rating scales method of performance appraisal. 8. Employee self appraisal form This form is a performance appraisal sample based on appraisal self by employee.

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1. PERFORMANCE APPRAISAL FORMS

I/ RATING SCALES OF PERFORMANCE APPRAISAL FORM: We can use scales as follows for this performance appraisal form. 1. Unsatisfactory: Major improvements needed. 2. Needs Improvement: Less than Satisfactory could be doing better. 3. Meets Expectations: Performing duties as directed with minimal Supervision. 4. Excellent: Performing all duties in a cost-effective manner with positive, measurable results. 5. Outstanding: Performing at a level above and beyond the duties of the current positions requirements.

II/ CONTENTS OF PERFORMANCE APPRAISAL FORM: 1. Quality of work Consider accuracy, thoroughness, effectiveness. Pressure, ability to meet standards of quality. Use of time and volume of work accomplished. Work output matches the expectations established.

2. Quantity of work Competence, thoroughness, and efficiency of work regardless of volume. Neatness and accuracy.

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3. Teamwork: Establish and maintain effective working relationship with others. Shares information and resources with others Follows instructions of supervisor and respond to requests from others in the team in a helpful manner. Contributing work and effort to group performance to meet agreed upon objectives and achieve team success

4. Job knowledge Application of appropriate level of technical and procedural knowledge in specific field Degree of technical competence. Understanding of job procedures, methods, facts and information related to assignments. Perform duties with minimal supervision but seek guidance where and when appropriate to the job, consults the appropriate staff

5. Initiative Consider the extent to which the employees sets own constructive work practice and recommends and creates own procedures. Self-starter, develop and implement new methods, procedures, solutions, concepts, designs and/or applications of existing designs or procedures.

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Accepts additional challenges and responsibilities and willingly assist others, self-reliant.

Completes assignment on time.

6. Interpersonal relations Consider the extent to which the employee is cooperative, considerate, and tactful in dealing with supervisors, subordinates, peers, faculty, students and others.

7. Health and safety compliance The degree to which he or she complies with or over sees the compliance with university safety rules. The following are also to be completed for supervisory personnel and members of the administrative staff.

8. Communications abilities Performance appraisal of communications includes elements as: Ability to listen and understand information; Presents information in a clear and concise manner. Knows appropriate way of communicating with immediate superiors and the management Demonstrates respect for all individuals in all forms of communication regardless of their background or culture.

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9. Planning and organizing: Adapting to changes and using resources effectively; Maintains confidentiality as appropriate. Setting objectives, establishing priorities, developing plans; Arranging work schedules and prioritizing work to meet deadlines. Know when to ask for clarification before proceeding on a work project.

10. Problem analysis and decision making Anticipating problems and facilitate problem resolution. Willingness to make necessary and immediate decisions given incomplete information. Understanding practical and workable solutions. Recognizing when a decision is necessary, asking for input, making decisions and providing information and feedback in a timely manner.

11. Staff development The extent to which the individual provides guidance and opportunities to his or her staff for their development and advancement in the university.

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12. Dependability Performance appraisal of dependability includes elements as: Consider the extent to which the employee completes assignments on time and carries out instructions. Starts work at appropriate time; Respects time allowed for breaks and lunch; Follows policies for requesting and reporting time off; Helps ensure work duties are covered when absent; Employees presence can be relied upon for planning purposes. Attendance and punctuality meets supervisors requirements.

2. MANAGER PERFORMANCE APPRAISAL FORM

I / MANAGER INFORMATION: o Name o Date o Job Title o Date of Last Review o Department: o Appraiser Name

II/ PERFORMANCE ACHIEVEMENT You should design table with columns as No, agreed objectives, weight, result, total score.

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 This table is used for objective performance.

III/ COMPETENCIES 1. Identify competencies needed for job, for example: Technical skills financial skills Decision making ability Analytical ability / problem solving Initiative/perseverance/enthusiasm Flexibility Written communication skills Oral communication skills Customer focus Teamwork Organizational ability. Negotiating skills

2. Rating scales can be: 1 = Exceptional 2 Strong 3 = Fully Competent 4 = Continued Development 5 = Poor

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N = Not Applicable

IV/ MANAGEMENT SKILLS 1. Staff Development/ Mentoring 2. Influencing Skills 3. Analytical/Conceptual Thinking 4. Ability to Lead a Team 5. Using Business Acumen 6. Coaching skill etc

V/ DISCUSSIONS 1) Strengths (examples of where individual has excelled). 2) Developmental needs (areas that need strengthening, additional

experience/exposure).

VI/ OVERALL RATING 1. Rating scales Exceptional Strong Fully Competent Continued Development Poor

2. Definition of each element:

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 Exceptional (clearly outstanding performance). Performance falls within top 5 10 % of employees at his/her level. Strong (excellent performance). Performance falls within top 15% of the employees at his/her level. Fully Competent (solid performance). Consistently meets expectations. Two-thirds of your employees should fall within this category. Continued Development. Needs development in current position. Overall performance is somewhat lower than expected for the current position. Poor (unsatisfactory performance). Performance is clearly below what is expected at current position/level. New to Position. Employee has been in position for less than six (6) months.

VII/ MANAGER COMMENTS

VIII/ SIGNATURES: The employees signature below indicates that a performance development discussion was conducted on the specified date, but does not necessarily indicate agreement with the content of the session. Manager / Supervisor Signature Supervisor Signature Date. Distribution: (1) Copy to HR departmental Personnel File (2) Copy to line manager. (3) Copy to Manager / Supervisor.

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3. EMPLOYEE PERFORMANCE APPRAISAL FORM

I / EMPLOYEE INFORMATION: Name Date Job Title Date of Last Review Department: Appraiser Name

II/ PERFORMANCE ACHIEVEMENT You should design table with columns as No, agreed objectives, weight, result, and total score. This table is used for objective performance

III/ COMPETENCIES 1. Identify competencies needed for job, for example: Written communication skills Oral communication skills Customer focus Teamwork Organizational ability. Negotiating skills Technical skills

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Financial skills Decision making ability Analytical ability / problem solving Initiative/perseverance/enthusiasm Flexibility

2. Rating scales can be: 1 = Exceptional 2 Strong 3 = Fully Competent 4 = Continued Development 5 = Poor N = Not Apply

IV/ DISCUSSIONS 1. Strengths (examples of where individual has excelled). 2. Developmental needs (areas that need strengthening, additional

experience/exposure).

V/ OVERALL RATING 1. Rating scales Exceptional Strong

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Fully Competent Continued Development Poor to Position

2) Definition of each element: Exceptional (clearly outstanding performance). Performance falls within top 5 10 % of employees at his/her level. Strong (excellent performance). Performance falls within top 15% of the employees at his/her level. Fully Competent (solid performance). Consistently meets expectations. Two-thirds of your employees should fall within this category. Continued Development. Needs development in current position. Overall performance is somewhat lower than expected for the current position. Poor (unsatisfactory performance). Performance is clearly below what is expected at current position/level. New to Position. Employee has been in position for less than six (6) months.

VI/ EMPLOYEE COMMENTS

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VII/ SIGNATURES: The employees signature below indicates that a performance development discussion was conducted on the specified date, but does not necessarily indicate agreement with the content of the session. Employee Signature Supervisor Signature Date Distribution: (1) Copy to HR departmental Personnel File (2) Copy to line manager. (3) Copy to Employee.

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4. ESSAY EVALUATION FORM

1. Definition of essay evaluation This method asked managers / supervisors to describe strengths and weaknesses of an employees behavior. Essay evaluation is a non-quantitative technique. This method usually use with the graphic rating scale method.

2. Input of information sources Job knowledge and potential of the employee; Employees understanding of the companys programs, policies, objectives, etc.; The employees relations with co-workers and superiors; The employees general planning, organizing and controlling ability; The attitudes and perceptions of the employee, in general.

3. Disadvantages of essay evaluation Manager / supervisor may write a biased essay. Some evaluators may be poor in writing essays on employee performance. Others may be superficial in explanation and use flowery language which may not reflect the actual performance of the employee.

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A busy rater may write the essay hurriedly without properly assessing the actual performance of the worker.

Apart from that, rater takes a long time, this becomes uneconomical from the view point of the firm, because the time of rater is costly.

HR department can design questions as follows and send to line manager for appraising. 1. Please give examples of the employees ineffective behavior 2. Please give examples of the employees effective behavior 3. What steps have been taken (or will be taken) to modify ineffective behavior? 4. Does the jobholders job description need revision? And how to? 5. What are additional comments related to the conditions and circumstances of effective/ineffective behavior?

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6. Jobholders comments

5. FORCED CHOICE FORM

1. Design question Forced Choice Requirements of questions: both statements in the pair may be positive or negative. Quality of work: ____quality is good____ Absent too often: ____works hard____ Learns quickly: ____work is reliable____ Performance is exemplary: ____usually tardy____

2. Deployment of Forced Choice form This form is conducted by line manager. The rater is required to choose the most descriptive statement in each pair of statements.

FORCED RANKING (FORCED DISTRIBUTION) 1. Definition of forced ranking (forced distribution) Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution.

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For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and 10 percent in the bottom. The top-ranked employees are considered high-potential employees and are often targeted for a more rapid career and leadership development programs. In contrast, those ranked at the bottom are denied bonuses and pay increases. They may be given a probationary period to improve their performance.

2. Application of Forced Ranking GE, Ford Motor, Conoco, Sun Microsystems, Cisco Systems, EDS, Enron and a host of other U.S. corporations have adopted similar policies of this method

Advantages and disadvantages of forced Ranking

Advantages: They create and sustain a high performance culture in which the workforce continuously improves. They force reluctant managers to make difficult decisions and identify the most and least talented members of the work group.

Disadvantages They increase unhealthy cut-throat competitiveness; They discourage collaboration and teamwork; They harm morale; They are legally suspect giving rise to age discrimination cases.

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6. WEIGHTED CHECKLIST FORM

1. Definition of weighted checklist This method describes a performance appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs.

2. Process of weighted checklist HR department and Managers / Supervisors will set up checklist for each position. If the rater believes strongly that the employee possesses a particular listed trait, he checks the item; otherwise, he leaves the item blank.

3. Sample of weighted checklist Does he give respect to his superiors? Yes/No Does he follow instructions properly? Yes/No Does he make mistakes frequently? Yes/No

The value of each question may be weighted equally or certain questions may be weighted more heavily than others.

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4. Advantages and disadvantages of weighted checklist This method helps the manager in evaluation of the performance of the employee. The rater may be biased in distinguishing the positive and negative questions. He may assign biased weights to the questions. This method also is expensive and time consuming. It becomes difficult for the manager to assemble, analyze and weigh a number of statements about the employees characteristics, contributions and behaviors.

WEIGHTED CHECKLIST FORM 1. Identify question: Based on elements of job performance, you can design questions as follows (for example) Employee cooperatively assists coworkers who need help Employee plans actions before beginning work Employee works overtime when asked to Employee keeps work station well organized Employee listens to advice but seldom follows it

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2. Design table of checklist You should design a table with 5 columns: No, Question, Yes / No, Weight. Then, Send Using this benchmarking form to to identify for weight of (stick each yes question. or no).

employees

answer

Identify result by summarizing all points at weight column.

7. RATING SCALE FORM

1. Definition of the rating scales The Rating Scale is a form on which the manager simply checks off the employees level of performance. This is the oldest and most widely method used for performance appraisal. The scales may specify five points, so a factor such as job knowledge might be rated 1 (poorly informed about work duties) to 5 (has complete mastery of all phases of the job).

2. Content of appraisal Quantity of work. Volume of work under normal working conditions Quality of work. Neatness, thoroughness and accuracy of work Knowledge of job. Dependability. Conscientious, thorough, reliable, accurate, with respect to attendance, relief, lunch breaks, etc.

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Judgment Attitude. Exhibits enthusiasm and cooperativeness on the job Cooperation. Willingness and ability to work with others to produce desired goals.

Initiative.

3. Rating scales Rating scales can include 5 elements as follows: Unsatisfactory Fair Satisfactory Good Outstanding

4. Advantages of the rating scales Graphic rating scales are less time consuming to develop. They also allow for quantitative comparison.

5. Disadvantages of the rating scales More validity comparing workers ratings from a single supervisor than comparing two workers who were rated by different supervisors. Different supervisors will use the same graphic scales in slightly different ways.

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One way to get around the ambiguity inherent in graphic rating scales is to use behavior based scales, in which specific work related behaviors are assessed.

1. Elements of the rating scale Elements for performance appraisal can include as follows. Quality of work Quantity of work Dependability Initiative Overall Output Attendance Attitude Cooperation

For each element, you can ask some questions.

2. Rating scales: Rating scales of each element above can include scales as follows: Excellent 5 points Good 4 points Acceptable 3 points

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 Fair 2 points Poor 1 point

8. SELF APPRAISAL FORM

EMPLOYEE SELF APPRAISAL FORM

Review period: from ___to___ Name: Department: Position: Job code: Based on your job description and current work assignments, please answer questions as follows: 1. Please list your most significant accomplishments or contributions during this appraisal period. 2. Describe any factors, positive or negative, you feel may have helped or hindered in meeting your formal or informal goals or objectives. 3. Have you successfully performed any new tasks or additional duties outside the scope of your regular responsibilities? If so, please specify. 4. What skills do you have that you feel could be used more effectively? 5. Describe the areas you feel require improvement in terms of your professional development. List the steps you plan to take and/or the resources you need to accomplish this.

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6. In your opinion, how does the work you perform align with or support the objectives of the University Mission Statement? 7. List 2-4 of your career goals for the coming year and indicate how you plan to accomplish them. 8. Please evaluate yourself on the following factors: outstanding, very competent, satisfactory, needs improvement Interpersonal Skills Time Management Skills Teamwork Innovation/Creativity

Please use this space to provide any additional comments. Please attach additional sheets if necessary. Employee Signature: Date:

SELF EVALUATION FORM Employee name: Department: Position: Date: Period of appraisal:

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1. What are your main job responsibilities? 2. Which job responsibilities do you view as most important? Why? 3. Have any new responsibilities been added or removed from your job this year? If so, what? 4. Have there been any special circumstances that have helped or hindered you in doing your job this year? If yes, how did they affect your work, and what were the circumstances? 5. List your most significant accomplishments or contributions during the past year. How do these achievements align with the goals/objectives outlined in your last review? 6. Since the last review period, have you performed any new tasks or additional duties outside the scope of your regular responsibilities? If so, please specify. 7. To which of the following factors would you attribute your professional development since last year: offsite seminars/classes, onsite training, peer training, on-the-job experience, better exposure to challenging projects, other. Please describe. 8. What would help you to do your job better and provide greater job satisfaction? 9. What are your goals for next year and what action will you take to accomplish these goals? 10. What could your supervisor/manager do to support you in doing your job? 11. What additional support from your organization would help you do your job more effectively? 12. What recommendations do you have that would make this a better place to work? 13. Indicate your career interests, including the type of assignment you would like next.

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SELF-ASSESSMENT QUESTIONS

1. Describe your job description. For each of the major responsibilities, what were the expectations and outcomes? 2. What would you have liked to have done this year, but were unable to? Why? 3. What goals have you set for yourself during the next year? What types of projects would you like to be involved in? 4. What types of developmental activities would you like to take advantage of (e.g., seminars, specific training classes, etc.)? 5. What kind of support and/or guidance would you like to see from your supervisor? 6. Describe any projects you have been responsible for which are not in your job description. What results have you achieved? 7. Describe any changes you suggested and/or implemented this year that led to improvement in your area (e.g., quality of work life, cost savings, efficiency). 8. What action(s) have you taken this year to gain a better understanding of the organization, your unit/division/department, or your own job? 9. Give examples of departmental collaborative efforts that you were involved in this year. What contributions did you make to the team? 10. Describe goals and/or developmental steps you set out to accomplish during this past year. Of those, which did you accomplish? 11. What do you think has been your most important contribution to the department and/or the organization? What are you most proud of?

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1. DEFINITION OF SELF APPRAISAL Self-appraisal is a method of performance appraisal that is done by employee (appraise).

ADVANTAGES OF SELF APPRAISAL By having employees do some sort of self evaluation before the actual review meeting, the review meetings can be shorter. If done properly and tactfully, encouraging employees to self evaluation or self appraise at any time during the year, including around the actual review meetings, help convey the message that the process of performance management and appraisal is a team effort, and not something the manager does to the employee. Whey self appraisal is an accepted and integrated part of the performance management process, it encourages employees to self evaluate throughout the year. Self-ratings are particularly useful if the entire cycle of performance management involves the employee in a self-assessment. The developmental focus of self-assessment is a key factor. Approximately half of the Federal employees in a large survey felt that selfratings would contribute to a great or very great extent to fair. Self-appraisals are particularly valuable in situations where the supervisor cannot readily observe the work behaviors and task outcomes.

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 DISADVANTAGES OF SELF APPRAISAL Research shows low correlations between self-ratings and all other sources of ratings, particularly supervisor ratings. The self-ratings tend to be consistently higher. This discrepancy can lead to defensiveness and alienation if supervisors do not use good feedback skills. Sometimes self-ratings can be lower than others. In such situations, employees tend to be self-demeaning and may feel intimidated and put on the spot. Self-ratings should focus on the appraisal of performance elements, not on the summary level determination. A range of rating sources, including the self assessments, help to round out the information for the summary rating.

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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: 1. 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.

2. 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.

3. 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

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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. 4. 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. 5. 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. 6. 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. 7. Spillover effect: - This refers lo allowing past performance appraisal rating lo unjustifiably influence current ratings. Past ratings, good or bad, result in similar

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rating for current period although the demonstrated behavior docs not deserve the rating, good or bad. 8. Personal Prejudice: If the rater dislikes any employee or any group, he may rate them at the lower end, which may distort the rating purpose and affect the career of these employees.

Other factors that are considered as problems are Failure of the superiors in conducting performance appraisal and post performance appraisal interview. Most part of the appraisal is based on subjectivity. Less reliability and validity of the performance appraisal techniques. Negative ratings affect interpersonal relations and industrial relations system. Influence of external environmental factors and uncontrollable internal factors. Feedback and post appraisal interview may have a setback on production. Management emphasizes on punishment rather than development of an employee in performance appraisal. Some ratings particularly about the potential appraisal are purely based on guess work.

The other problems of performance appraisal reported by various studies are:

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Relationship between appraisal rates and performances after promotions was not significant.

Some superiors completed appraisal reports within a few minutes. Absence of inter-rater reliability. The situation was unpleasant in feedback interview. Superiors lack that tact of offering the suggestions constructively to subordinates.

Supervisors were often confused due to too many objectives of performance appraisal.

RESEARCH METHODOLOGY

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The quality and reliability of research study is dependent on the information collected in a scientific and methodological manner. Scientific planning of designing of research method is a blue print for any research study. Therefore, proper time and attention should be given in designing the plan of research. While proper definition of problem tells the researcher where he has to go, proper design tells him how he should go. Selection of methodology for a particular project is made easy by sorting out a number of alternative approaches, each of them having its own advantage and disadvantages. Efficient design is that which ensure that the relevant data are collected accurately.

The researcher has to think about what procedure and techniques should be adopted in the study. He should arrive at the final choice by seeing that the methodology chosen for project is indeed the best one, when compared with others.

RESEARCH DESIGN:

Research design is the first and foremost step in methodology adopted and undertaking research study. It is overall plan for the collection and analysis of data in the research project. Thus it is an organized, systematic approach to be the formulation, implementation and control of research project.

In fact a well planned and well balanced research design guards against collection of irrelevant data and achieves the result in the best possible way.

SAMPLE DESIGN:-

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The universe of study being large, researcher has to resort to sampling method of data collection. On the basis of a section of the universe selected in a prescribed manner one is able to deduce for the universe. For the sample results to be applicable on the universe, sample should be adequately chosen so to make it representative and reliable.

SAMPLING PLAN: Sample Size = 50 Employees Sample Area = Max Life Insurance Duration = Two (2) Months.

DATA COLLECTION METHOD:

Data are the bricks with which the researcher has to make a house. While the quality of research findings depends on data, the adequacy of appropriate data in turn depends upon proper method of data collection. A number of methods are at the disposal of the researcher of which one has to select the most appropriate one for visualizing the research objective. Thus he has to see that the method adopted is compatible with the resources and research study.

a) Primary Data: Data which are collected fresh and for the first time and thus happens to be original in character. Primary data are gathered for specific purpose. b) Secondary Data: Data that collected from primary data i.e., they are already exit some where. For the purpose of our study we collected both the data.

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DATA COLLECTION: Data Sources: (i) Secondary Data through Internet (ii) Primary Data through Questionnaire (iii) Contact Method (iv) Personal Interaction

DATA PRESENTATION AND ANALYSIS: 1. 2. Bar graphs Pie Diagrams

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Data Analysis
By having discussion with senior production officers of Max Life Insurance and filling of the questionnaire, the data was collected which is analyzed as follows: -

1. Type of performance appraisal preferred

Table-1 S. No 1. 2. View Quaterly Half-yearly Percentage 85% 15%

90 80 70 60 50 40 30 20 10 0 quaterly half-yearly monthly annually

Interpretation

After analyzing the data, the results shows that 85% of the senior production officers prefer quarterly performance appraisal and 15% prefer half-yearly performance appraisal.

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2. Seniors satisfied by subordinates performance

Table-2 S. No 1. 2. View Yes No Percentage 85% 15%

Satisfied with Subordinate performance 0% 0%

2 15%

1 85%

Interpretation After analyzing the data, the results shows that 85% of the senior production officers feel that their seniors are satisfied with their performance and 15% cant say. This analysis shows there is lack of appraisal by the immediate seniors.

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3. Satisfied with their own Performance

Table-3 S. No 1. 2. View Yes No Percentage 85% 15%

Satisfied with their own performance

0% 2 15% 0%

1 85%

Interpretation After analyzing the data, the results shows that 85% of the senior production officers are satisfied with their own performance and 15% are not satisfied with their own performance. This implies that satisfaction level has to be increased among senior production Officers.

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4. Performance appraisal improves performance

Table-4 S. No 1. 2. View Yes No Percentage 98% 2%

Improves Performance
100 80 60 40 20 0 1 2

Improves Performance

Interpretation After analyzing the data, the results shows that 98% of the senior production officers feels that performance appraisal do helps in performing better and rest 2% was not satisfied with them. Through this we come to know that process of performance appraisal is coming out to be positive and it should be continued.

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5. Information is submitted timely by the senior production officers to their seniors.

Table-5 S. No 1. 2. View Yes No Percentage 99% 1%

Improves Performance
100 80 60 40 20 0 1 2

Interpretation After analyzing the data, the result shows that 99% of the senior production officers submit all the information timely to their seniors but 1% was not submit their information in time. This shows that all the senior production officers submit all the information timely to the seniors.

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6. Adequate and fair chance provided to defend against adverse entries in your appraisal
Table-6 S. No 1. 2. View Yes No Percentage 67% 33%

Defend against adverse entries

Interpretation After analyzing the data, the results show that 67% of the senior production officers feel that they are provided with a chance to defend them against adverse entries in their appraisal whereas 33% denies it. This shows that there is lack of chances provided to defend against adverse entries in appraisal.

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7. Reason for bad performance

Table-7 Personal Officials Others No bad performance 16% 16% 16% 52%

In percentage
60% 50% 40% 30% In percentage 20% 10% 0% Personal Officials Others No bad performance

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Interpretation After analyzing the data, the results shows that 16% of senior production officers performed bad due to personal reasons, 16% of senior production officers due to official reasons, 16% of senior production officers due to other reasons and no bad performance from the rest of the 52% of senior production officers. This shows that there are some reasons, which are required to be rectified to improve performance.

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8. Awareness about performance appraisal system.

Table-8 S. No 1. 2. View Yes No Percentage 67% 13%

Awareness of appraisal system

Interpretation

After analyzing the data, the results shows that 67% of the senior production officers are fully aware of the appraisal system and rest 33% are unaware of this system.This shows that awareness about the performance appraisal system is to be increased.

FINDINGS & SUGGESTION

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Based on my analysis of data collected during my study in Max Life Insurance Meerut, I have got the following:1.) 2.) Performance appraisal in Max Life Insurance , is done annually. For appraisal in Max Life Insurance, a Self-Appraisal form is given to the staff members and they fill it up. And then after according to their self-observation and through the appraisal form filled by the staff members rating is given to the members. Accordingly then incentives and promotions are granted. 3.) In Max Life Insurance Meerut, at the majority senior staff members submit all the information timely to their superiors. 4.) In Max Life Insurance Meerut, there is lack of proper knowledge among senior production officers about the procedure followed in Performance Appraisal. 5.) There is lack of fair chances provided to defend yourself against adverse entries in your appraisal. 6.) All senior production officers agree that performance appraisal system helps them to perform better. 7.) There is lack of satisfaction level among the senior production level officers regarding to their own work as they have monotony at their work.

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LIMITATIONS
According to research undertaken by me, and the results obtained, following are the recommendations to improve the procedure of performance appraisal followed in Reliance Life Meerut: 1) Staff members should be provided with the training about performance appraisal and they should be made very well aware about the thing that this exercise can help them in developing their performance and attitude which will help them on their own part at majority and company at minority. 2) Senior-Subordinate meetings should be made very regular so that every can keep his point in front without any hesitation and that will add to their innovation and creation. 3) The process of performance appraisal should be made goal-oriented. 4) Staff members should be provided with the well-defined targets.

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SUGGESTION
As we know Performance appraisal is a systematic and objective way of judging the relative worth or ability of an employee in performing the task. Performance appraisal helps to identify those who are performing their assigned tasks and those who are not and the reasons for such performance. The company should go for the 360degree performance appraisal. Under this method the person whose performance is to be judged is in between and his peers, supervisor, head and the manager of the company is around him who rate the performance of the employee based upon certain predefined criterias. The system is like: The standards of the rating should be very specific, clear and concise. There should be the feeling of teamwork in the organization. The system should be cost effective and it should suit the budget of the company. The performance, which is been measured, should be verifiable and measurable afterwards also.

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CONCLUSION
After collecting the information from the senior production officers with the help of personal discussion, filling the questionnaire and analyzing the data, I have derived the following conclusion In Max Life Insurance Meerut performance appraisal is conducted annually. Under this process, a self-appraisal form has been given and senior production officers have to fill that form which throws light on their basic achievements during the past accounting year. After that the immediate boss who has been observing the immediate subordinate throughout the year rates him according to the self appraisal form filled and personal observation under following factorsa) Quality of work. b) Quantity of work. c) Job knowledge. d) Dependability. e) Innovation and creativity. f) Ability to learn. g) Attendance. h) Reactions to criticism. i) Discipline. j) Customer relations. k) Subordinate development.

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The rating given is confidential and out of the knowledge of their subordinates. Accordingly, promotions and incentives are granted to the deserving ones.

Rating given to the senior production officers is done confidentially and whatever information is been filled in the self-appraisal form is not cross-questioned.

The sole objective for taking part in performance appraisal of Senior production officers in Max Life Insurance Meerut is to be awarded with promotions and incentives but the basic reason why performance appraisal is conducted is to develop the performance and attitude. Senior production officers of Max Life Insurance Meerut follow the procedure of performance appraisal given by the senior managers because they have monotony in their work and they have no time for any innovation or creativity. Also I concluded that Max Life Insurance considers performance appraisal important because of the following reasons

Performance appraisals provide employees and managers with opportunities to discuss areas in which employees excel and those in which employees need improvement. Performance appraisals should be conducted on a regular basis, and they need not be directly attached to promotion opportunities.

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Personal Attention

1. During a performance appraisal review, a supervisor and an employee discuss the employee's strengths and weaknesses. This gives the employee individual face time with the supervisor and a chance to address personal concerns.

Feedback

2. Employees need to know when their job duties are being fulfilled and when there are issues with their work performance. Managers should schedule this communication on a regular basis.

Career Path

3. Performance appraisals allow employees and supervisors to discuss goals that must be met to advance within the company. This can include identifying skills that must be acquired, areas in which one must improve, and educational courses that must be completed.

Employee Accountability

4. When employees know there will be regularly scheduled evaluations, they realize that they are accountable for their job performance.

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Communicate Divisional and Company Goals

5. Besides communicating employees' individual goals, employee appraisals provide the opportunity for managers to explain organizational goals and the ways in which employees can participate in the achievement of those goals.

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BIBLIOGRAPHY
MAGAZINE Business Today Advertising & Management NEWSPAPERS Times of India Hindustan Times WEBSITE
http://www.reliancelife.com/rlic/index.aspx http://www.performance-appraisal.com/intro.htm www.performance-appraisal.com/home.htm 360-degree-performance-appraisal.html http://www.indianinsurance.com/showthread.php/464-Reliance-Life-InsuranceCompany-Limited

BOOKS

Human resources development -T.N. CHABBRA

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Human resources development - V.S.P. RAO

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ANNEXURE

STUDY OF PERFORMANCE APPRAISAL SYSTEM

1. What type of performance appraisal you prefer? Annually Monthly Quarterly Half yearly

2. Are your seniors satisfied with your performance? Yes No

3. Are you satisfied with your performance? Yes No

4. If no do you think you can perform better?

Yes

No

5. Does performance Appraisal help you in performing better?

Yes

No

6. Do you submit information timely to your superiors?

Yes

No

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7. Do you get adequate and fair to defend your self against adverse entries in your appraisal?

Yes

No

8. What actually comes as the reason for your bad performance? (if any)

Personal

Official

Other

Bad Performance

9. Are you fully aware of the appraisal system followed in your company?

Yes

No

10. What is the criteria of your performance evaluation? Performance Attendance Customer focus Target achievement

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