COMPANY PROFILE

Mi ssi on : To becom e a r esponsi bl e cust om er focused m arket l ead er. We st il l st ri ve t o unde rst and the i nsuran ce needs of t he consum ers and t ransl at e i t i nt o a fford abl e product s t hat del i ver val ue fo r m one y. Vi si on : To be t he fi rst choi c e i nsurer for cust om e rs. To be t he pre fer red em pl o yee fo r st aff i n t he i nsuranc e i ndust r y. To be t he num ber one i nsurer for c reat i n g sha rehol der val ue.

B ajaj All i an ze L if e In su ran ce Is the fast est growi n g pri vat e l i fe i nsurance com pany i n Indi a. C urrent l y have over 300000 sat i sfi ed cust om ers.

Have Customer care centers in !" cities with #$000 Insurance Consultant providing the finest customer service.

%a& a& 'l li an( )eneral In suran ce C om pany *i m i t ed is a & oi nt vent ure bet ween %a& a& 'ut o *i m i t ed and 'l l i an( ') of )erm an y. %ot h en& oy a reput at i on of e+ pert i se, st abi l i t y and st rengt h.

%a& a& 'l li an( )eneral In suran ce recei ved t he Insur ance - egul at or y and .evel opm ent 'ut hori t y /I- .'0 cert i fi c at e of - egi st rat i on /- 30 on 1a y # n d , #00 t o conduct )eneral

Insur anc e busi ness /i ncl udi ng Heal t h Insu ran ce busi ness0 in In di a. The C om pan y has an aut hori ( ed and pai d up capi t al of -s. rem ai ni ng #"4. '), )erm an y. 0 crores. %a& a& 'ut o hol ds 234 and 'l l i an( hol ds t he

In it s fi rst yea r of operat i ons t he com pany has ac5ui red t he 67. non8 li fe i nsurers. 's on 3
st

st at us am ong the pri vat e

1arch #003, %a& a& 'l l i an( e )ener al Insur anc e m ai nt ai ned i t s

l eadershi p posi t i on b y garn eri n g a prem i um i ncom e of - s.300 C rores. %a& a& 'l li an( e al so becam e one of t he few com pani es t o m ake a profi t i n it s fi rst ful l yea r of operat i ons. %a& a& 'l l i an( m ade a profi t aft er t a+ of -s.9." crores.

%a& a& 'l li an( e t oda y has a net work of 30 offi ces spread across t he l engt h and breadt h of t he count r y. :rom ;urat t o ; l il i guri and <amm u t o Thi ruvanant hapur am , al l the 3$ offi ces are i nt erconnect ed wi t h the Head 7ffi ce at =une .

In t he fi rst hal f of t he current fi nanci al yea r, #00380!, %a& a& 'l l i an( gene rat ed a p remi u m i n come of Rs !"# crores$ achi evi ng a growt h of $34 and re gi st ered a !#4 gro wt h i n 6et profi t of -s. #0 C rores over t he l ast ye ar for t he sam e peri od. In t he fi nanci al yea r #003803,

t he prem i um earn ed was -s.3$0 C rores, whi ch i s a & um p of "04 and t he profi t ( oom ed by #!4 to - s. # ."4 C rores.

% &a re& ol' e rs ( Promo) ers

B ajaj Au )o Li mi )e' %a& a& 'ut o *i m i t ed i s the l argest m anufact ur er of t wo and t hree8 wheel ers i n In di a and al so one of t he l argest m anufact ure rs i n the worl d. %a& a& 'ut o has been in operat i on for over !! yea rs . 's a prom ot er of %a& a& 'l l i an( )eneral Insur ance C om pan y *t d., %a& a& 'ut o has t he fol l owi ng t o offer> ?ast di st ri but i on net work. @nowl edge of In di an consum ers. :i nanci al st rengt h and st abi li t y t o support t he i nsurance busi ness

A ll i an z A G, Germ an y 'llian( )roup is one of the worldAs leading insurers and financial services providers. :ounded i n $90 i n %erl i n, 'll i an( i s now present i n more t han 20 count ri es wi t h over

22,000 em pl o ye es . 't t he t op of t he int ernat i onal group i s t he hol di ng com pany, 'l l i an( '), wi t h it s head offi ce i n 1uni ch.

'l l i an( )roup provi des it s m ore than "0 mi l li on cust om ers worl dwi de wit h a com prehensi ve ran ge of servi ces i n the areas of = ropert y and casual t y i nsurance, *i fe and heal t h insurance, 'sset m anagem ent and banki ng.

In fi scal yea r #00!, 'll i an( As t ot al revenu es am ount ed t o som e of #00! 'll i an( )roup had m ore t han

00.9 bi ll i on euros. 't t he end

.#" t ri l l i on euros i n asset s under m anagem ent . 7f thi s,

233 bi l li on euros were asset s m anaged for t hi rd part i es.

CO RE CO MPE * E NCIE % A* B A+A+ AL L IAN, L IFE IN% -RANCE

Trust

C l ai ms Phi l osophy Cust omer Ori ent at i on

Experienced and Expert Servicing Team ; uperi or Technol ogy Bni 5ue :orm s of -i sk C over

In)ro'uc)ion of *opic

:rom immemorial time, man has continuously assesses their capability with others. This urge to do better has resulted in his continuously evolution which is vital for the growth of any business. Performance Appraisal .PA/ is one such tool to measure the performance of an employee. Cmployee performance appraisal is an effective way to determine the performance of the employees in an organi(ation. =erformance 'ppraisal /='0 is mainly used to determine the wage increase, promotions, transfer and layoffs, termination of services D the training and development to the employees in an organi(ation. It serves as a tool to determine the future of the organi(ation and visuali(e the career growth of the employees.

Performance Appraisal .PA/ is normally done by senior e+ecutives and the senior manager in the organi(ation to appraise the employee for their performance and also to find out difficulties while meeting their goals. .uring this period of carrying out the process the appraiser faces the problem in rating the subordinateEemployeeEpeer and sometime they may rate their subordinate wrongly, which will block the whole purpose of the appraisal system.

:rom user testing, the traditional appraisal system found to be efficient in the issues like> it help to evaluate the true abilities of employees, help employees to understand organi(ational goals, and to provide fast and effective feedback. The users found the system easy to understand and use and were more satisfied with the overall effectiveness of the system

The main focus of the study of this is to identify the areas in =erformance 'ppraisal ;ystem that would help in the organi(ational development. Cvery organi(ation has made it mandatory to have this appraisal done once in a year to measure their employee performance. Hence, there should be well8defined appraisal procedure which is properly used to evaluate employeeFs performance. This study report aims at covering all aspects related to performance.

In order to make this report comprehensive, sample appraisals are also provided. This study was conducted at ba&a& allian( life insurance co. ltd, ;agar

*&e o0jec)i1e of )&e 2ues)ionnaire 3as )o o0)ain emplo4ees5 opinion on performance appraisal .PA/ s4s)em in )&eir or6anisa)ion *&e %)ruc)ural 2ues)ionnaire prepare' for 7R sur1e4 comprise' of )3o par)s: Firs) par) re6ar's )&e 8'emo6rap&ic9 of )&e respon'en)s$ as:in6 )&eir name$ 'esi6na)ion$

2ualifica)ions an' 'epar)men) in )&e compan4 .Vice Presi'en)$ %enior 7R consul)an)s$ Business ;e1elopmen) E<ecu)i1e/$ )&eir )enure 3i)& )&e or6anisa)ion an' )o)al e<perience *&e 'emo6rap&ic c&arac)eris)ics of )&e respon'en) 6roup 3ere as follo3s *&ere is Vice Presi'en) 3&o &as e<perience of 3or: since =# 4ears in )&e or6anisa)ion$ %enior 7R consul)an)s 3&o 3or: e<perience of =># 4ears e<perience$ Business 'e1elopmen) e<ecu)i1e 3&o 3or: e<perience of ">= 4ears %econ' par) of )&e 2ues)ionnaire consis)e' of 82uan)i)a)i1e an' 2uali)a)i1e s)a)emen)s9 In or'er )o i'en)if4 impor)ance of )&e fac)ors in 'e)erminin6

OB+EC*IVE% OF *7E PRO+EC*

The basic ob&ectives of this pro&ect is>

To find out present performance appraisal system used in the company. To find about the employees views for the system adopted by the company to appraise their performance. To know about the working scheme of the company.

To suggest some measures for improving the methods to appraise the performance of the workers.

Performance Appraisal
?&a) is Performance Appraisal@ 8Performance appraisal is a s4s)ema)ic an' o0jec)i1e 3a4 of ju'6in6 )&e rela)i1e 3or)& or a0ili)4 of an emplo4ee in performin6 )&e )as: Performance appraisal &elps )o i'en)if4 )&ose 3&o are performin6 )&eir assi6ne' )as:s an' )&ose 3&o are no) an' )&e reasons for suc& performance 9

Mo'ern Appraisal:8

=erformance appraisal may be defined as a structured formal interaction between a subordinate and supervision , that usually takes the form of a periodic interview /annual or semi annual0, in which the work performance of the subordinate is e+amined and discussed with a view to identifying weakness and strengths as well as opportunities for improvement and skills development.

In many organi(ations but not all appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is the appraisal results are used to identify the better performing employees who should get the ma&ority of available merit pay increases, bonuses and promotions.

%y the same token , appraisal results are used to identify the poorer performers who may re5uire some form of counseling , or in e+treme cases ,demotion, dismissal or decreases in pay . /7rgani(ations need to be aware of laws in their country that might restrict their capacity dismiss employees or decrease pay0.Whether this is an appropriate use of performance appraisal G the assignment and &ustification of rewards and penalties G is very uncertain and contentious matter.

Performance appraisal is use' for >8 . Identifying employees for salary increases , promotion , transfer and layoff or termination of services. #. 3. 3. .etermining training need for further improvement in performance. 1otivating employees by indicating their performance levels. Cstablishing a basis for research and reference for personnel decisions in future.

Aoals of )&e Performance Appraisal %4s)em >8

For super1isors$ )&e process of performance mana6emen) is one of )&e mos) impor)> an) lea'ers&ip responsi0ili)ies *&e performance appraisal s4s)em &as )&ree primar4 6oals:>

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

#.

To enhance employee development through performance feedback and through the identification of future professional development activities.

3.

To measure and document &ob performance as a basis for making prom8 otion, compensation and other personnel management decision.

?&o %&oul' Con'uc) )&e Appraisal@

The individual /superviser0 who has the authority to make hiring recommendations and to assign work to the employee should be the person responsible for completing the appraisal. ;upervsors who donot directly observe or otherwise measure the outcomes of a given emp8 loyeeFs &ob performance should seek input from individuals who do directly observe the employee /eg.' crew leader, group leader, area co8ordinator, and other workers0. This may be the case, especially in larger departmentsEunits. ItFs the responsibility of departmentEunit heads and supervisors to

prepare written performance appraisal and to conduct timely appraisal meetings. If a given supervisor should delay or neglect to conduct an appraisal, the affected employee is encouraged to initiate such or may contact the .epartment of Human resources for assistance.

*&e Performance Appraisal Process

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

7b&ectives of =erformance 'ppraisal Cstablish <ob C+pectations .esign an 'ppraisal =rogram 'ppraise =erformance =erformance Interview Bse 'ppraisal .ata for 'ppropriate =urpose
Performance %)an'ar' an' Aoals

=erformance standards and goals are the basis from which employee performance is measured. The written performance appraisal should reflect how well the employee performed against defined &ob responsibilities and previously established goals and ob&ectives. Cffective goals and ob&ectives must be specified, measurable and reasonable and have a time frame.

%pecific: > 7b&ective and precise language is essential when developing performance goals and ob&ectives. ;upervisors should use terms and descriptions, which have the same meaning to the

supervisor and the employee. .etailed points rather tan vague descriptions are important for understanding and documentation.

Measura0le: > )oals and ob&ectives should be written so that accomplishment accomplishment can be ob&ectively measured.

or degrees

of

Reasona0le> 8 )oals and ob&ectives which are too high or rigid may actually inhibited an employeeHs performance. Individuals may become discouraged and give up if perceive e+pectations to be unattainable. )oals and ob&ectives should be reasonable given time frames, circumstances and departmentalEunit e+pectations.

*ime frame: > ' specific period of time for accomplishment should be identified with each goals and ob&ectives.

ME*7O;% OF PERFORMANCE APPRAI%AL:>

Terms used to describe the various type of rating systems as well as a definition or performance appraisal is as follows>

Be&a1ioral Anc&ore' Ra)in6 %cales >8 The terms used to decribe a

performance rating that

focused on specific behaviors or sets as indicators of effective or ineffective performance , rather than on broadly stated ad&ectives such as Iaverage, above average, or below averageJ. 7ther variations were > . #. 3. %ehavioral observations scale. %ehavioral e+pectations scale. 6umerically anchored ating scales.

C&ec:lis)s>8 The term used to define a set of ad&ectives or descriptive statements. If the rather believed the emplotee possessed a trait listed, the rather checked the item , if not the ather left the item blank, rating score from the check8 list e5ualed the number of checks.

Cri)ical Inci'en) *ec&ni2ue >8 The term used to describe a meth8 od of performance appraisal that made list of statements of very effective and very ineffective behavior foremploye. The lists have been combined into categories , which vary with &ob .7nce the cat8 egories had been developed and statements of effective and ineffe8 ctive behavior had been provided ,the evaluator prepared a log for each

employee. .oring the evaluation period , the evaluator reco8 rded e+amples of critical behaviors in each of the categories and the log has been used to evaluate the employee at the end of the evaluation period.

 Force' C&oice Me)&o': > This appraisal method has been developed to prevent evaluators from rating employees to high. Bsing this method, the evaluator has to select from a set of descriptive statements that apply to the employee. The statements have been weighted and summed to at, effective8 ness inde+.

Force' ;is)ri0u)ion>8 The term used to describe an appraisal system similar to grading on a curve. The evaluator had been asked to rate employees in some fi+ed distribution of categories. 7ne way to do this has been to type the name of each employee on a card and ask the evaluators so sort the cards into piles corresponding to rating.

Arap&ic Ra)in6 %cale>8 The term used to define

the oldest and most widely used performance

appraisal method. The evaluators are given a graph and asked to rate the employees on each of the characteristics can vary one to one hundred. The rating can be a matri+ of bo+es for the evaluator to check off or a bar graph wh8ere the evaluator checked off a loca8 tion relative to the evaluators rating.

Narra)i1e or Essa4 E1alua)ion>8 This appraisal method asked the evaluator to describe strengths and weakness of an emplyeeHs beh8 avior. ;ome companies still use this method e+clu8 sively , where8 as in others , the method has been combined with the graphic rating scale.

Mana6emen) 04 O0jec)i1e>8 The management by ob&ectives perfo8 rmance appraisal method has the supervisor and employee get tog8 ether to set ob&ectives in 5uantifilable terms.

Paire' Comparison >8 The term used to describe an appraisal method for taking employee. :irst the names of the employees to be evalu8 ated have been placed on separated sheets in a predetermined order , so that each person has been compared with all other employees to be evaluated. The evaluator then checks the person he or she felt had been the better of the two on the criterion for each

comparison. Typically the criterion has been the employees over all ability to do the present &ob. The number of tines a person has been preferred is tallied and the tally developed is inde+ of the number being evaluated.

 Ran:in6 >8 The term ranking has been used to describe an altern8 ative method of performance appraisal where the supervisor has been asked to order his or her employees in terms of performance from highest to lowest.

?ei6&)e' C&ec:lis) >8 The term used to describe a performance appraisal method where supervisors or personnel specialists fam8 iliar with the &obs being evaluated prepared a large list of descrip8 statements about effective and ineffective behavior on &obs. tive

Purpose of *ra'i)ional Performance Appraisal =erformance appraisal for evaluation using the traditional approach has served the following purposes>8

=romotion , separation and transfer decision. :eedback to the employee regarding how the organi(ation viewed the employeeHs performance. Cvaluations of relative contributions made by individuals and entire departments in achieving higher level organi(ation goals. Criteria for evaluating the effectiveness of selection and placement decisions including the relevance information used n the decision with in the organi(ation. -eward decisions , including merit increases , promotions and other rewards. 'scertaining and diagnosing training and development decisions Criteria for evaluating the success of training and development decisions. Information upon which work scheduling plans, budgeting and human resources planning can be used.

Two serious flaws in the traditional approach in the performance appraisal e+ist. The flaws are> 7rgani(ational performance appraisal is typically primarily concerned with the past rather than being forward looking through the use of setting ob&ectives or goals.

=erformance appraisal is usually tied to the employeesH salary reviewed. .ealing with salary generally overwhelmed and block creative, meaningful or comprehensive consideration of performance goals.

IN*RO;-C*ION
The Insurance sector in India governed by Insurance 'ct, 93$, the *ife Insurance Corporation 'ct, 9!" and )eneral Insurance %usiness /6ationalisation0 'ct, 92#, Insurance -egulatory and .evelopment 'uthority /I-.'0 'ct, 999 and other related 'cts. With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of !8#0 per cent annually. Together with banking services, it adds about 2 per cent to the countryFs ).= .In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. 6early $04 of Indian populations are without *ife insurance cover and the Health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation I1alhotra CommitteeJ was constituted by the government in 993 to e+amine the various aspects of the industry. The key element of the reform process was =articipation of overseas insurance companies with #"4 capital. Creating a more efficient and competitive financial system suitable for the re5uirements of the economy was the main idea behind this reform. ;ince then the insurance industry has gone through many sea changes .The competition *IC started facing from these companies were threatening to the e+istence of *IC .since the liberali(ation of the industry the insurance industry has never looked back and today stand as the one of the most competitive and e+ploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techni5ues and the IT tools has increased the scope of the industry in the longer run.

7I%*ORY OF IN%-RANCE %EC*OR

The business of life insurance in India in its e+isting form started in India in the year $ $ with the establishment of the 7riental *ife Insurance Company in Calcutta. ;ome of the important milestones in the life insurance business in India are given in the table .

*a0le =: miles)one5s in )&e life insurance 0usiness in In'ia

Year 9 # 9#$ 93$ 9!"

Miles)ones in )&e life insurance 0usiness in In'ia The Indian *ife 'ssurance Companies 'ct enacted as the first statute to regulate the life insurance business The Indian Insurance Companies 'ct enacted to enable the government to collect statistical information about both life and non8life insurance businesses Carlier legislation consolidated and amended to by the Insurance 'ct with the ob&ective of protecting the interests of the insuring public. #3! Indian and foreign insurers and provident societies taken over by the central government and nationalised. *IC formed by an 'ct of =arliament, vi(. *IC 'ct, 9!", with a capital contribution of -s. ! crore from the )overnment of India.

The )eneral insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company *td., the first general insurance company established in the year $!0 in Calcutta by the %ritish. ;ome of the important milestones in the general insurance business in India are given in the table #.

*a0le B: miles)one5s in )&e 6eneral insurance 0usiness in In'ia Year 902 9!2 9"$ 92# Miles)ones in )&e 6eneral insurance 0usiness in In'ia The Indian 1ercantile Insurance *td. set up, the first company to transact all classes of general insurance business )eneral Insurance Council, a wing of the Insurance 'ssociation of India, frames a code of conduct for ensuring fair conduct and sound business practices The Insurance 'ct amended to regulate investments and set minimum solvency margins and the Tariff 'dvisory Committee set up. The )eneral Insurance %usiness /6ationalisation0 'ct, 92# nationalised the general insurance business in India with effect from st <anuary 923. 02 insurers amalgamated and grouped into four companies vi(. the 6ational Insurance Company *td., the 6ew India 'ssurance Company *td., the 7riental Insurance Company *td. and the Bnited India Insurance Company *td. )IC incorporated as a company.

In'ian Insurance Mar:e) C 7is)or4

Insurance has a long history in India. *ife Insurance in its current form was introduced in $ $ when 7riental *ife Insurance Company began its operations in India. )eneral Insurance was however a comparatively late entrant in $!0 when Triton Insurance company set up its base in @olkata. History of Insurance in India can be broadly bifurcated into three eras> a0 =re 6ationalisation b0 6ationalisation and c0 =ost 6ationalisation. *ife Insurance was the first to be nationali(ed in 9!". *ife Insurance Corporation of India was formed by consolidating the operations of various insurance companies. )eneral Insurance followed suit and was nationali(ed in 923. )eneral Insurance Corporation of India was set up as the controlling body with 6ew India, Bnited India, 6ational and 7riental as its subsidiaries. The process of opening up the insurance sector was initiated against the background of Cconomic -eform process which commenced from 99 . :or this purpose 1alhotra Committee was formed during this year who submitted their report in 993 and Insurance -egulatory .evelopment 'ct /I-.'0 was passed in 999. -esultantly Indian Insurance was opened for private companies and =rivate Insurance Company effectively started operations from #00 .

Insurance Mar:e)> Presen):

The insurance sector was opened up for private participation four years ago. :or years now, the private players are active in the liberali(ed environment. The insurance market have witnessed dynamic changes which includes presence of a fairly large number of insurers both life and non8life segment. 1ost of the private insurance companies have formed &oint venture partnering well recogni(ed foreign players across the globe.

There are now #9 insurance companies operating in the Indian market G 3 private life insurers, nine private non8life insurers and si+ public sector companies. With many more &oint ventures in the offing, the insurance industry in India today stands at a crossroads as competition intensifies and companies prepare survival strategies in a detariffed scenario.

There is pressure from both within the country and outside on the )overnment to increase the foreign direct investment /:.I0 limit from the current #"4 to 394, which would help <? partners to bring in funds for e+pansion.

There are opportunities in the pensions sector where regulations are being framed. *ess than 0 4 of Indians above the age of "0 receive pensions. The I-.' has issued the first licence for a standalone health company in the country as many more players wait to enter. The health insurance sector has tremendous growth potential, and as it matures and new players enter, product innovation and enhancement will increase. The deepening of the health database over time will also allow players to develop and price products for larger segments of society.

%)a)e Insurers Con)inue *o ;omina)e There may be room for many more players in a large underinsured market like India with a population of over one billion. %ut the reality is that the intense competition in the last five years has made it difficult for new entrants to keep pace with the leaders and thereby failing to make any impact in the market.

'lso as the private sector controls over #". $4 of the life insurance market and over #".!34 of the non8life market, the public sector companies still call the shots.

The countryFs largest life insurer, *ife Insurance Corporation of India /*IC0, had a share of 23.$#4 in new business premium income in 6ovember #00!.

;imilarly, the four public8sector non8life insurers G 6ew India 'ssurance, 6ational Insurance, 7riental Insurance and Bnited India Insurance G had a combined market share of 23.324 as of 7ctober #00!. ICICI =rudential *ife Insurance Company continues to lead the private sector with a 2.#"4 market share in terms of fresh premium, whereas ICICI *ombard )eneral Insurance Company is the leader among the private non8life players with a $. 4

market share. ICICI *ombard has focused on growing the market for general insurance products and increasing penetration within e+isting customers through product innovation and distribution.

Reac&in6 Ou) *o Cus)omers 6o doubt, the customer profile in the insurance industry is changing with the introduction of large number of divergent intermediaries such as brokers, corporate agents, and bancassurance.

The industry now deals with customers who know what they want and when, and are more demanding in terms of better service and speedier responses. With the industry all set to move to a detariffed regime by #002, there will be considerable improvement in customer service levels, product innovation and newer standards of underwriting.

In)ense Compe)i)ion In a de8tariffed environment, competition will manifest itself in prices, products, underwriting criteria, innovative sales methods and creditworthiness. Insurance companies will vie with each other to capture market share through better pricing and client segmentation.

The battle has so far been fought in the big urban cities, but in the ne+t few years, increased competition will drive insurers to rural and semi8urban markets.

Alo0al %)an'ar's While the world is eyeing India for growth and e+pansion, Indian companies are becoming increasingly world class. Take the case of *IC, which has set its sight on becoming a ma&or global player following a -s#$08crore investment from the Indian government. The company now operates in 1auritius, :i&i, the B@, ;ri *anka, 6epal and will soon start operations in ;audi 'rabia. It also plans to venture into the 'frican and 'sia8 =acific regions in #00".

The year #00! was a testing phase for the general insurance industry with a series of catastrophes hitting the Indian sub8continent.

However, with robust reinsurance programmes in place, insurers have successfully managed to tide over the crisis without any adverse impact on their balance sheets.

With life insurance premiums being &ust #.!4 of ).= and general insurance premiums being 0."!4 of ).=, the opportunities in the Indian market place is immense. The ne+t five years will be challenging but those that can build scale and market share will survive and prosper.

Researc& Me)&o'olo64
a) Statement of the Problem Cvery business organi(ation large or small spend huge amount of money on Human -esource. It is necessary therefore to find out how they are performing in order to design their future of the organi(ation. It may be to develop the employees or to correct the employees or to utili(e employeeFs strength. This study is directed towards probing =erformance 'ppraisal system of %'<'< '**I'6K *I:C I6;B-'6CC. b) Types of ResearchThere is social research in a H- ;urvey with particular reference to =erformance 'ppraisal as a of %'<'< '**I'6K *I:C I6;B-'6CC Sample Design: It is random sampling techni5ues where the samples were designed based on the nature of work, 5ualification, e+perience, etc. Sample Size: #0 Cmployees -espondents Tool for collection of Data: ;tructured 5uestionnaire is used to collect the data. Copy of 5uestionnaire is placed at the 'nne+ure of the pro&ect report. Metho of !ollecting Data: The 5uestionnaires were floated to respondents through -esearcher where the data was collected and returned by H- Bnit. Metho of Analysis: . #. 3. 3. The collected data were tabulated =ercentage of respond was worked out 'nalysis is based on percentage fre5uency Weight age is given to high percentage in response factor

!.

Cvaluation is made based on the analysis and the presumptions inherences are used, where every data is ambiguous. .efinitive evaluation is made every data is clear.

Fin'in6s$ Anal4sis an' ;iscussion>

Present Appraisal System "ee bac# In this system, employees and managers set e+pectations and prepare plans for work and development at the beginning of the year. The key responsibilities and results /@--s0 dimensions and behavioral e+pectations, and the criteriaEstandards for the performance measurement are prescribed and clarified. 'lthough they may be e+pressed differently for different &obs, the basic areas of measurement for all &obs are 5uality, 5uantity, cost and timeliness. To ensure that all employees receive feedback for maintaining or improving productivity, two documented semi8 annual feedback sessions are re5uired. The supervisor uses discretion to schedule informal feedback based on individual employeesF needs.

'lthough a case study with a limited number of respondents cannot be widely generali(ed, the results should be 5uite interesting to mangers who would like to think critically and seek ways to improve performance appraisal systems in organi(ations

Part A: Personal Data . To carry out any =ro&ect ;tudy personal data needs detailed analysis because it is basic foundation to understand correct profile of respondent. This shows their knowledge, mental status and maturity. Cducational background to understand the topic of the study so that they can be related age. Age Gro$p # 830 3 830 3 8!0 Total %o& of Respon ents 3 # 3 #0 Percentage 20 0 #0 00

:rom the above data indicates that 204 of respondents are of # 830 age group, 04 of respondents are of 3 830 age group and #04 of respondents are of 3 8!0 age group.

Gen er-

Gen er 1ale :emale Total

%o& of Respon ents # $ #0

Percentage "0 30 00

The above data indicates that "04 of respondents are male, rest 304 of respondents are female.

'$alification'$alification .iploma )raduate =ost )raduate Total %o& of Respon ents # " # #0 Percentage 0 30 "0 00

In the above data, it is seen that 04 of respondents are diploma in 5ualifications, 304 of respondents are graduates and rest "04 of respondents are post graduate.

DesignationDesignation 1anager 7fficer <unior 7fficer ?= Total %o& of Respon ents 3 0 3 # #0 Percentage #0 !0 #0 0 00

:rom the above data, it is seen that #04 of respondents are 1anagerial post, !04 of respondents are at officer post, #04 of respondents are &unior officer and 04 of respondents are ?= in post.

Part (: Research Data = Is )&e Performance Appraisal process user frien'l4@ a Yes 0 No

S.No. = B Total

Options Yes No

No. of espondents =D ! B"

Percentage E" B" =""

Respon ents an ResponsesE"F of )&e respon'en)s are a6ree' )o )&e a0o1e s)a)emen) It is user8friendly and easily accessible within the organi(ation. It also provides a consolidated view. It captures an individualFs strengths, improvement areas and also captures training courses recommended. It gives an opportunity to the employee to accept or decline. It is very fle+ible.

B"F of )&e respon'en)s are 'isa6ree' )o )&e s)a)emen) It is a very easier tool, where employee can fill in short time. 's an employee need to know what is re5uired of them in order to work effectively by this.

Is Performance Appraisal con'uc)e' on )ime@ a Yes 0 No

S.No. = B Total

Options Yes No

No. of espondents =B E B"

Percentage D" !" =""

Respon ents ) ResponsesD"F of )&e respon'en)s a6ree' )o )&e a0o1e s)a)emen) =erformance 'ppraisal process will start on time. There is a fi+ed schedule to meet listed in detail at the beginning of the process. =rocess will be conducted as per the appraisal period.

!"F of )&e respon'en)s 'isa6ree' )o )&e s)a)emen) =rocess end will take long time and unintentionally however measuring 5uality issues do cause delays. =rocess Cycle should be reduced because there is always delay due to the respective owners of the employee. The steps involved in the process are very long as a result.

;oes Performance Appraisal process assess fairl4@ a Yes 0 No

S.No. = B Total

Options Yes No

No. of espondents =D ! B"

Percentage E" B" =""

Respon ents ) ResponsesE"F of )&e respon'en)s a6ree' )o a0o1e s)a)emen) The process assessment is fair and &ustified with business units. It is ob&ective process. 1easuring an individual is fair. The metrics are ade5uate.

B"F of )&e respon'en)s 'isa6ree' )o )&e s)a)emen) 'cross %usiness units does not yield right results. There are some issues with performing employees not getting proper result of the appraisal. 3"0 feedback systems should be there. There is an element of sub&ectivity. The presence of 'ppraiser and

reviewer is aimed at eliminating the sub&ectivity.

Ac)ions )a:en af)er Performance Appraisal> Particulars -seful 'iscussions No 'iscussions Onl4 failure are 'iscusse' Aenius Fee'0ac: is 6i1en Total espondents == ! B G B" Percentage ## B" =" =# =""

*&e a0o1e 'a)a s&o3s ac)ions )a:en af)er )&e Performance Appraisal 04 )&e appraiser )&e mana6emen) ##F respon'en)s of )&em repor)e' )&e4 )a:e up useful 'iscussions on )&e e1alua)ion an' resul)s$ ! of )&em i e B"F &a1e 'enie' an' sa4s no 'iscussion$ ="F sai' onl4 failures are 'iscusse'$ no 'iscussion is ma'e on ac&ie1emen)$ =#F a6ree' )&a) )&e4 6e) 6enius fee'0ac: on e1alua)ion *&us$ majori)4 of respon'en)s )ol' )&e4 are useful 'iscussions 3i)& appraiser af)er performance appraisal

He4 fin'in6s>
*&e follo3in6 :e4 fin'in6s are foun' 3&ile performin6 7R sur1e4 for i'en)if4in6 )&e impac) of Performance Appraisal .PA/ s4s)em:

%'<'< '**I'6K *I:C I6;B-'6CC follows two types of 'ppraisal process 8 )raphic -ating ;cales and %ehaviorally 'nchored -ating ;caling /%'-;0 which is user8friendly and easily accessible within the organi(ation.

It captures an individualFs strengths, improvement areas D also captures training courses recommended. =erformance 'ppraisal process will start on time and process will be conducted as per the appraisal period. There is a fi+ed schedule to meet listed in detail at beginning of the process. The process assessment is fair and &ustified with business units. It is ob&ective process, measuring an individual is fair but the metrics are inade5uate. 'cross business units does not yield right results. There are some issues with performing employees not getting proper result of the appraisal. =rocess is clear to e+press as an individual his strengths and capacity. It gives an opportunity to show case his achievement. It helps to understand the re5uired capacity to meet re5uirements. ' =erformance 'ppraisal system tools should be based on assessment of work performance not personality. ' =erformance 'ppraisal system tools should be kept as simple as possible while meeting ob&ectives. .etailed orientation will be given at all level at beginning of the performance appraisal process. ?arious training programs are available and discussed with superiors. ;ometimes process will be failed due to some internal problem after getting orientated on the performance appraisal system.

:eedback session involved revisions of individualFs accomplishments during the appraisal period. HisEher strengths, improvement areas and training and development.

1ore time will be spent if one employee worked under different managers for assignments.

It is necessary to now the earlier managerFs feedback

Conclusions>

1ost of the time =erformance 'ppraisal /='0 for determining compensation increases, training need identification and for promotions. The =erformance 'ppraisal has delinked itself from being an instrument of evaluating performance in the organi(ation. 'pplication of performance and bringing about better performance management practices that enables organi(ation to improve their performance and bring in a performance driven culture is the need of the hour rather performance appraisal only.

6o .oubt without the commitment of the top management it would &ust be very difficult to bring this sort of change. This in fact calls for a cultural change where in emphasis is not only given to the 7utcome or the end result but also on the process and effort made to achieve the result. While discussing of the process D effort we need to focus on the leadership style, his approach of consulting others, his ability to learn, his approach as a team member, his effort in planning his days and week, and his overall orientation for subordinates development. 'll this really calls for a different ball games wherein the concerned supervisors are able to emphasi(e with his sub8ordinates and is really above to understand his emotional world.

In this era where every individual is competing with each other and where very tight schedules are drawn without much scope for slippages, there is every probability that conflicts are going to become a common affair. 's such is has become all the more important that a supervisor makes all out effort to understand emotional world of the sub8 ordinate in terms of his hindering and facilitating factors in terms of achieving his goals, what help the person growth and his own ambition in the ne+t 383 years, what is happening on his family front.

'll this shall only happen if the sub8ordinate is able to see value and a genuine concern in all this. :or this what can be done is that once in a month an effort can be made by the supervisor to sit his sub8ordinate to sit with his sub8 ordinate and have a face to face interaction in a non threatening atmosphere. What I have personally observed that it

charges the motivation level of an individual considerably and in fact the employee makes all out effort to achieve the 7rgani(ational goals.

Recommen'a)ions
Though the employees feels that the company is fair in its appraisal process but still has lot to in terms of making the appraisal process effective so that it results in enhanced employee satisfaction and helps in retaining key employees of the company. The pro&ect leaders are dissatisfied with the way responsibilities are distributed. The company needs to works in this area and bring more clarity in the definitions of roles and responsibilities. The 1anagement should design training and development programs, career plans for their employeesF on the basis of skills, knowledge needs. 'ppreciate employeesF on the basis of employeesF work performance by =romotion or increment in the salaries. The performance culture of the company is another area where needs to be done to improve the training regimen so that involvement of the employees is enhanced which finally would build the morale and productivity would be enhanced. Cmployees have doubts about the rewards and feel that the system is not too transparent. This in the long run unattended would reduce the morale and may lead to attrition.

Limi)a)ion of )&e %)u'4>

'ny research study will be restricted in scope by certain inherent limitations that are participated by the choice of the research design. This study has the following limitations>

Cven though the survey was conducted for the employee performance review the study does not match with the entire population in the company.

%ecause of time constraints, the sample si(e is restricted to #0, which may not reflect the opinion of the entire population in the company.

;ince study was restricted to samples. ;ample may behave or give different opinions at different times because of their psychological temperament. This will affect the study.

.ata could be collected from only #0 respondents as they were busy and could not respond so well to the 5uestionnaires.

1ost of the organi(ation hesitates to give confidential H- information which is needed for the study like e+pectation in salary, periodical incremental percentage.

=erformance appraisal is very important for any company. It helps to make the companies employee work better and show good result for the company too. This helps the company to turn out to be profit making company.

's in %'<'< '**I'6K *I:C I6;B-'6CC we are using the I-ating scalesJ or I:air comparison methodJ mostly to grade the performance of the employees. The method used by the company is very fair and it is very easy to be adopted by the personnelFs. This method is very convenient to be used. %ut the drawback associated with the method is that it has now became an out dated method to be used because there are fifty percent chances of biasness to occur for a particular employee by the raters.

'fter the survey and the conversation by the people of other company we came to know that they have introduced the 3"08degree performance appraisal in the company. %efore they were using the same method as used by %'<'< '**I'6K *I:C I6;B-'6CC at times they used I:orced

choice methodJ also to rate the performance, which affected the companies working to a great e+tent.

%ut when they reali(ed that they are having complains from the workers, staff etc. they decided to go for a change and now they incorporated 3"08deree performance appraisal, the result of using this method is that everyone in the company is satisfied by it.

Hence accordingly to my views I would also suggest the company to go for the change it the method adopted by them for better results and employee satisfaction.

(ibliography
!. " S P ao, #uman esource $anagement, %nurag &ain for Excel 'oo(s, Ne) *elhi.

+. *r. , %sh)athappa, #uman esource - Personal management, T%T%

$c.ra)/#ill Publishing Company limited, Ne) *elhi.

0. Prem Chadha, Performance $anagement

1. .oogle Engine Search

!. ))).appraisals.nau(rihub.com

". ))).performance/appraisal.com

2. 3i(ipedia /%n Encyclopedia