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DECLARATION

I hereby declare that the project titled PERFORMANCE APPRAISAL PROCESS IN BAJAJ ALLIANZ is my own work and efforts which is completed under the supervision of Mr. Vinay Kumar Sharma
EXECUTIVE IN BAJAJ ALLIANZ) HR

The project report has been submitted to N!r"h In#ian In$"i"u"% !& T%'hn!(!)y* Na+i,a,a# a&&i(ia"%# "! Mahamaya T%'hni'a( -ni.%r$i"y* N!i#a -.P./ for the purpose of the compliance of any requirement of any examination or any degree earlier.

PRI0ANKA RAJP-T
MBA III S%m./

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PREFACE

Ma$"%r !& Bu$in%$$ A#mini$"ra"i!n M.B.A./ one of the most reputed professional courses includes both theory ! practical as a part of two years curriculum. In this course each student it reputes to undergo practical project in an organi"ation of repute. Project report is an exercise by means of which student learn many things which cannot be taught in the classroom. #uring project students understand the real modus operation of the concerned areas of interest in the real life situation. The Project report process is an endeavor to converts all that$s virtual into a real image i.e. it helps in applying all the theoretical concepts in to the real corporate world. It helps in developing the managerial skills using which we can convert into language ! convey the taught ! ideas from our mind to others.

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ACKNO2LED3EMENT

This project is the result of the help of the various people who rendered their support and suggestions from time to time. I take this opportunity to thank all of them with a deep sense of gratitude and reverence. &irstly I wish to express my sincere thanks to Mr. Vinay Kumar Sharma 4R Executive at BAJAJ ALLIANZ) for his caring and guiding support and for giving a very patient hearing whenever I needed. 'e directly made a significant contribution to emerge to this project report. (y sincere thanks to MISS AFS4A HR FACULTY & R!JECT "UI#E

NIIT$ NAJIBABA#/ 5 )ther faculty member for their support and help. I would also like to thank my family and friends who directly or indirectly helped me in finishing the project successfully.

PRI0ANKA RAJP-T
MBA III S%m./

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ABO-T INS-RANCE SECTOR IN INDIA


The Insurance sector in India governed by Insurance ,ct 1-*. the /ife Insurance 0orporation ,ct 1-12 and 3eneral Insurance 4usiness 56ationalisation7 ,ct 1-8% Insurance 9egulatory and #evelopment ,uthority 5I9#,7 ,ct 1--- and other related ,cts. :ith 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 11;%< per cent annually. Together with banking services it adds about 8 per cent to the country$s 3#P .In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. 6early .<= of Indian populations are without /ife insurance cover and the 'ealth 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 >(alhotra 0ommittee? was constituted by the government in 1--* to examine the various aspects of the industry. The key element of the reform process was Participation of overseas insurance companies with %2= capital. 0reating a more efficient and competitive financial system suitable for the requirements of the economy was the main idea behind this reform. @ince then the insurance industry has gone through many sea changes .The competition /I0 started facing from these companies were threatening to the existence of /I0 .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 exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run.

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4ISTOR0 OF INS-RANCE SECTOR


The business of life insurance in India in its existing form started in India in the year 1.1. with the establishment of the )riental /ife Insurance 0ompany in 0alcutta. @ome of the important milestones in the life insurance business in India are given in the table 1. Ta,(% 67 mi(%$"!n%8$ in "h% (i&% in$uran'% ,u$in%$$ in In#ia 0%ar 696: 69:; Mi(%$"!n%$ in "h% (i&% in$uran'% ,u$in%$$ in In#ia The Indian /ife ,ssurance 0ompanies ,ct enacted as the first statute to regulate the life insurance business The Indian Insurance 0ompanies ,ct enacted to enable the government to collect statistical information about both life and non;life insurance 69<; 69=> businesses Aarlier legislation consolidated and amended to by the Insurance ,ct with the objective of protecting the interests of the insuring public. %+1 Indian and foreign insurers and provident societies taken over by the central government and nationali"ed. /I0 formed by an ,ct of Parliament vi". /I0 ,ct 1-12 with a capital contribution of 9s. 1 crore from the 3overnment of India.

The 3eneral insurance business in India on the other hand can trace its roots to the Triton Insurance 0ompany /td. the first general insurance company established in the year 1.1< in 0alcutta by the 4ritish. @ome of the important milestones in the general insurance business in India are given in the table %.

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Ta,(% :7 mi(%$"!n%8$ in "h% )%n%ra( in$uran'% ,u$in%$$ in In#ia 0%ar 69?@ 69=@ Mi(%$"!n%$ in "h% )%n%ra( in$uran'% ,u$in%$$ in In#ia The Indian (ercantile Insurance /td. set up the first company to transact all classes of general insurance business 3eneral Insurance 0ouncil a wing of the Insurance ,ssociation of India frames a code of conduct for ensuring fair conduct and sound business 69>; 69@: practices The Insurance ,ct amended to regulate investments and set minimum solvency margins and the Tariff ,dvisory 0ommittee set up. The 3eneral Insurance 4usiness 56ationali"ation7 ,ct 1-8% nationali"ed the general insurance business in India with effect from 1st Banuary 1-8*. 1<8 insurers amalgamated and grouped into four company$s vi". the 6ational Insurance 0ompany /td. the 6ew India ,ssurance 0ompany /td. the )riental Insurance 0ompany /td. and the Cnited India Insurance 0ompany /td. 3I0 incorporated as a company.

/ife Insurance in its current form was introduced in 1.1. when )riental /ife Insurance 0ompany began its operations in India. 3eneral Insurance was however a comparatively late entrant in 1.1< when Triton Insurance company set up its base in Dolkata. 'istory of Insurance in India can be broadly bifurcated into three erasE a/ Pr% Na"i!na(iAa"i!n ,/ Na"i!na(iAa"i!n '/ P!$" Na"i!na(iAa"i!n. /ife Insurance was the first to be nationali"ed in 1-12. /ife Insurance 0orporation of India was formed by consolidating the operations of various insurance companies. 3eneral Insurance followed suit and was nationali"ed in 1-8*. 3eneral Insurance 0orporation of India was set up as the controlling body with 6ew India Cnited India 6ational and )riental as its subsidiaries. The process of opening up the insurance sector was initiated 81Page

against the background of Aconomic 9eform process which commenced from 1--1. &or this purpose (alhotra 0ommittee was formed during this year who submitted their report in 1--+ and Insurance 9egulatory #evelopment ,ct 5I9#,7 was passed in 1---. 9esultantly Indian Insurance was opened for private companies and Private Insurance 0ompany effectively started operations from %<<1. In$uran'% MarB%"C Pr%$%n"7 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 non;life segment. (ost of the private insurance companies have formed joint venture partnering well recogni"ed foreign players across the globe. There are now %- insurance companies operating in the Indian market F 1+ private life insurers nine private non;life insurers and six public sector companies. :ith many more joint ventures in the offing the insurance industry in India today stands at a crossroads as competition intensifies and companies prepare survival strategies in a #A tariffed scenario. There is pressure from both within the country and outside on the 3overnment to increase the foreign direct investment 5&#I7 limit from the current %2= to +-= which would help BG partners to bring in funds for expansion. There are opportunities in the pensions sector where regulations are being framed. /ess than 1< = of Indians above the age of 2< receive pensions. The I9#, 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. S"a"% In$ur%r$ C!n"inu% "! D!mina"% There may be room for many more players in a large underinsured market like India with a population of over one billion. 4ut the reality is that the

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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 %2.1.= of the life insurance market and over %2.1*= of the non;life market the public sector companies still call the shots. The country$s largest life insurer /ife Insurance 0orporation of India 5/I07 had a share of 8+..%= in new business premium income in 6ovember %<<1. @imilarly the four public;sector non;life insurers F 6ew India ,ssurance 6ational Insurance )riental Insurance and Cnited India Insurance F had a combined market share of 8*.+8= as of )ctober %<<1. I0I0I Prudential /ife Insurance 0ompany continues to lead the private sector with a 8.%2= market share in terms of fresh premium whereas I0I0I /ombard 3eneral Insurance 0ompany is the leader among the private non;life players with a ..11= market share. I0I0I /ombard has focused on growing the market for general insurance products and increasing penetration within existing customers through product innovation and distribution. R%a'hin) !u" "! Cu$"!m%r$ 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 banc assurance. 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. :ith the industry all set to move to a #A tariffed regime by %<<8 there will be considerable improvement in customer service levels product innovation and newer standards of underwriting. In"%n$% C!mD%"i"i!n In a de;tariffed environment competition will manifest itself in prices products underwriting criteria innovative sales methods and creditworthiness. Insurance companies will vie with each other to capture market share through better pricing and client segmentation. The battle has so far been fought in the big urban cities but in the next few years increased competition will drive insurers to rural and semi;urban markets. -1Page

3(!,a( S"an#ar#$ :hile the world is eyeing India for growth and expansionH Indian companies are becoming increasingly world class. Take the case of /I0 which has set its sight on becoming a major global player following a 9s%.<;crore investment from the Indian government. The company now operates in (auritius &iji the CD @ri /anka and 6epal and will soon start operations in @audi ,rabia. It also plans to venture into the ,frican and ,sia; Pacific regions in %<<2. The year %<<1 was a testing phase for the general insurance industry with a series of catastrophes hitting the Indian sub;continent. 'owever with robust reinsurance programmes in place insurers have successfully managed to tide over the crisis without any adverse impact on their balance sheets. :ith life insurance premiums being just %.1= of 3#P and general insurance premiums being <.21= of 3#P the opportunities in the Indian market place is immense. The next five years will be challenging but those that can build scale and market share will survive and prosper.

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COMPAN0 PROFILE
Ba+a+ A((ianA Li&% In$uran'% C!mDany Limi"%#

TyD% In#u$"ry F!un#%# 4%a#Euar"%r$ Ar%a $%r.%# K%y D%!D(% 2%,$i"%

Public /isted 0ompany Insurance %<<1 India :orldwide Garghese Philip 50A)7 4ajaj,llian".com

Bajaj Allianz offers a wide range of life insurance plans through which customers can secure their lives as well as their familys financial well-being.
,n overview of their life insurance productsE T%rm P(an$ F 4ajaj ,llian" offers basic term life insurance plans through which customers can insure their lives for a high sum assured. -LIP$ F The Cnit /inked Insurance Plans which combine the best of insurance and investment to provide security for one$s family. These plans come with the aim of helping the customer plan for various long;term objectives such as retirement children$s education and marriage etc.

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Tra#i"i!na( P(an$ F 4ajaj ,llian"$s money;back plans are geared towards the needs of those customers who are looking for both life insurance and savings for the future. These plans combine traditional life insurance with investment compounded over time to pay out a regular income to the customer once the plan has matured. Li&% F 4%a("h In$uran'% P(an$ F 4ajaj ,llian" also offers a range of unique hospitali"ation;cum;insurance plans that take care of the customers$ hospitali"ation bills and provide financial support to their dependents in case of their unfortunate death. P%n$i!n P(an$ F :ith the awareness that retirement is one of the largest worries of the populace 4ajaj ,llian" has created a range of plans specifically for generating a retirement income. 2!m%n In$uran'% P(an$ F 4ajaj ,llian" also offers women;specific plans which provide investment benefits savings retirement solutions and medical insurance all in one. A##i"i!na( Ri#%r B%n%&i"$ F 4ajaj ,llian"$s life insurance policies are customi"able in a variety of ways. They can be extended to cover additional risks such as disability critical illness loss of ability to work etc. via the various riders offered by the company and person as well.

Ba+a+ A((ianA Li&% In$uran'%


Is the fastest growing private life insurance company in India. 0urrently have over *<<<<< satisfied customers. 'ave 0ustomer care centers in 112 cities with %.<<< Insurance 0onsultant providing the finest customer service.

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4ajaj ,llian" 3eneral Insurance 0ompany /imited is a joint venture between 4ajaj ,uto /imited and ,llian" ,3 of 3ermany. 4oth enjoy a reputation of expertise stability and strength. 4ajaj ,llian" 3eneral Insurance received the Insurance 9egulatory and #evelopment ,uthority 5I9#,7 certificate of 9egistration 59*7 on (ay % n d %<<1 to conduct 3eneral Insurance business 5including 'ealth Insurance business7 in India. The 0ompany has an authori"ed and paid up capital of 9s.11< crores. 4ajaj ,uto holds 8+= and ,llian" holds the remaining %2=. ,3 3ermany. In its first year of operations the company has acquired the 6). 1 status among the private non;life insurers. ,s on *1 s t (arch %<<* 4ajaj ,llian"e 3eneral Insurance maintained its leadership position by garnering a premium income of 9s.*<< 0rores. 4ajaj ,llian"e also became one of the few companies to make a profit in its first full year of operations. 4ajaj ,llian" made a profit after tax of 9s.-.2 crores. 4ajaj ,llian"e today has a network of 2% offices spread across the length and breadth of the country. &rom @urat to @liliguri and Bammu to Thiruvananthapuram all the *. offices are interconnected with the 'ead

)ffice at Pune . In the first half of the current financial year %<<+;<1 4ajaj ,llian" generated a Dr%mium in'!m% !& R$.G?= 'r!r%$* achieving a growth of .+= and registered a 1%= growth in 6et profit of 9s. %< 0rores over the last year for the same period. In the financial year 1%1= to 9s. %1.2= 0rores. %<<*;<+ the premium earned was 9s.+.< 0rores which is a jump of 2<= and the profit "oomed by

Shar%h!(#%r$ 5 Pr!m!"%r$
6. Ba+a+ Au"! Limi"%#

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4ajaj ,uto /imited is the largest manufacturer of two and three;wheelers in India and also one of the largest manufacturers in the world. 4ajaj ,uto has been in operation for over 11 years. ,s a promoter of 4ajaj ,llian" 3eneral Insurance 0ompany /td. 4ajaj ,uto has the following to offerE Gast distribution network. Dnowledge of Indian consumers. &inancial strength and stability to support the insurance business

:. A((ianA A3* 3%rmany


,llian" 3roup is one of the worldIs leading insurers and financial services providers. &ounded in 1.-< in 4erlin ,llian" is now present in more than 8< countries with over 188 <<< employees. ,t the top of the international group is the holding company ,llian" ,3 with its head office in (unich. ,llian" 3roup provides its more than 2< million customers worldwide with a comprehensive range of services in the areas of

Property and casualty insurance /ife and health insurance ,sset management and banking. In fiscal year %<<1 ,llian"Is total revenues amounted to some 1<<.- billion euros. ,t the end of %<<1 ,llian" 3roup had more than 1.%2 trillion euros in assets under management. )f this 8+* billion euros were assets managed for third parties.

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Mi$$i!n 5 .i$i!n !& '!mDany


Mi$$i!n7 To become a responsible customer focused market leader. :e still strive to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money. Vi$i!n7 To be the first choice insurer for customers. To be the preferred employee for staff in the insurance industry. To be the number one insurer for creating shareholder value.

CORE COMPETENCIES AT BAJAJ ALLIANZ LIFE INS-RANCE Trust 0laims Philosophy 0ustomer )rientation Axperienced and Axpert @ervicing Team @uperior Technology Cnique &orms of 9isk 0over

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INTROD-CTION TO TOPIC

&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 ,ppraisal 5P,7 is one such tool to measure the performance of an employee. Amployee performance appraisal is an effective way to determine the performance of the employees in an organi"ation. Performance ,ppraisal 5P,7 is mainly used to determine the wage increase promotions transfer and layoffs termination of services ! 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 ,ppraisal 5P,7 is normally done by senior executives 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 subordinateJemployeeJpeer 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 likeE 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 Performance ,ppraisal @ystem that would help in the organi"ational development. Avery organi"ation has made it mandatory to have this appraisal done once in a year to measure their employee performance. 'ence there should be well;defined appraisal procedure which is properly used to evaluate employee$s performance. This study report aims at covering all aspects related to performance. In order to make this report comprehensive sample appraisals are also provided. This study was conducted at 4ajaj ,llian" life insurance co. ltd 6ew #elhi. The objective of the 12 1 P a g e

questionnaire was to obtain employees$ opinion on performance appraisal 5P,7 system in their organisation. The @tructural questionnaire prepared for '9 survey comprised of two partsE Fir$" Dar" regards the >demographic? of the respondents asking their name designation qualifications and department in the company 5Gice President @enior '9 consultants 4usiness #evelopment Axecutive7 their tenure with the organisation and total experience. The demographic characteristics of the respondent group were as follows. There is Gice President who has experience of work since 11 years in the organisation @enior '9 consultants who work experience of 1;1 years experience 4usiness development executive who work experience of <;1 years. S%'!n# Dar" of the questionnaire consisted of >quantitative and qualitative statements?. In order to identify importance of the factors in determining.

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OBJECTIVES OF T4E PROJECT


The basic objectives of this project areE 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.

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P%r&!rman'% ADDrai$a(
2ha" i$ P%r&!rman'% ADDrai$a(H
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.

M!#%rn ADDrai$a(7;
Performance appraisal may be defined as a structured formal interaction between a subordinate and supervision that usually takes the form of a periodic interview 5annual or semi annual7 in which the work performance of the subordinate is examined and discussed with a view to identifying weakness and strengths as well as opportunities for improvement and skills development. In many 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 majority of available merit pay increases bonuses and promotions. 4y the same token appraisal results are used to identify the poorer perform; ers who may require some form of counseling or in extreme cases demotion dismissal or decreases in pay . 5)rgani"ations need to be aware of laws in their country that mi; ght restrict their capacity dismiss employees or decrease pay7.:hether this is an appropriate use of performance appraisal F the assignment and justification of rewards and penalties F is very uncertain and contentious matter.

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P%r&!rman'% aDDrai$a( i$ u$%# &!rE;


1. Identifying employees for salary increases promotion transfer and layoff or termination of services. %. #etermining training need for further improvement in performance. *. (otivating employees by indicating their performance levels. +. Astablishing a basis for research and reference for personnel decisions in future. 3!a($ !& "h% P%r&!rman'% ADDrai$a( Sy$"%mE; &or supervisors the process of performance management is one of the most important leadership responsibilities. The performance appraisal system has "hr%% Drimary )!a($E; 1. To provide a formal means of constructive open and honest communication between the employees and hisJher supervisor. %. To enhance employee development through performance feedback and through the identification of future professional development activities. *. To measure and document job performance as a basis for making promotion compensation and other personnel management decision. 2h! Sh!u(# C!n#u'" "h% ADDrai$a(H The individual 5supervisor7 who has the authority to make hiring recommendations and to assign work to the employee should be the person responsible for completing the appraisal. @upervisors who do not directly observe or otherwise measure the outcomes of a given employee$s job performance should seek input from individuals who do directly observe the employee 5e.g. a crew leader group leader area coordinator and other workers7. This may be the case especially in larger departmentsJunits. It$s the responsibility of departmentJunit %< 1 P a g e

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 'uman resources for assistance. Th% P%r&!rman'% ADDrai$a( Pr!'%$$ The figure outlines the performance appraisal process. Aach step in the process is crucial and is arranged logically.

)bjectives of Performance ,ppraisal Astablish Bob Axpectations #esign an ,ppraisal Program ,ppraise Performance Performance Interview Cse ,ppraisal #ata for ,ppropriate Purpose
P%r&!rman'% S"an#ar# an# 3!a($
Performance standards and goals are the basis from which employee performance is measured. The written performance appraisal should reflect how well the employee performed against defined job responsibilities and previously established goals and %1 1 P a g e

objectives. Affective goals and objectives must be specified measurable and reasonable and have a time frame. SD%'i&i'7 C )bjective and precise language is essential when developing performance goals and objectives. @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. M%a$ura,(%7 C 3oals and objectives should be written so that accomplishment or degrees of accomplishment can be objectively measured. R%a$!na,(%E ; 3oals and objectives which are too high or rigid may actually inhibited an employeeKs performance. Individuals may become discouraged and give up if perceive expectations to be unattainable. 3oals and objectives should be reasonable given time frames circumstances and departmentalJunit expectations. Tim% &ram%7 C , specific period of time for accomplishment should be identified with each goals and objectives.

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MET4ODS OF PERFORMANCE APPRAISAL7C


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

B%ha.i!ra( An'h!r%# Ra"in) S'a(%$ E; The terms used to describe a performance rating that focused on specific behaviors or sets as indicators of effective or ineffective performance 1. 4ehavioral observations scale. %. 4ehavioral expectations scale. *. 6umerically anchored rating scales. Ch%'B(i$"$E ; The term used to define a set of adjectives or descriptive statements. If the rather believed the employee possessed a trait listed the rather checked the item if not the other left the item blank rating score from the check; list equaled the number of checks. Cri"i'a( In'i#%n" T%'hniEu% E; The term used to describe a meth; od of performance appraisal that made list of statements of very effective and very ineffective behavior foreplay. The lists have been combined into categories which vary with job .)nce the categories had been developed and statements of effective and ineffective behavior had been provided the evaluator prepared a log for each employee. #uring the evaluation period the evaluator recorded examples of critical behaviors in each of the categories and the log has been used to evaluate the employee at the end of the evaluation period. rather than on broadly stated adjectives such as >average above average or below average?. )ther variations were E

F!r'%# Ch!i'% M%"h!#7 C This appraisal method has been developed to prevent evaluators from rating employees to high. Csing this method the evaluator has to select from a set of descriptive statements that apply to the employee. The statements have been weighted and summed to at effective; ness index. %* 1 P a g e

F!r'%# Di$"ri,u"i!nE; The term used to describe an appraisal system similar to grading on a curve. The evaluator had been asked to rate employees in some fixed distribution of categories. )ne 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. 3raDhi' Ra"in) S'a(%E; The term used to define the oldest and most widely used performance appraisal method. The evaluators are given a graph and asked to rate the employees on each of the characteristics can vary one to one hundred. The rating can be a matrix of boxes for the evaluator to check off or a bar graph where the evaluator checked off a location relative to the evaluators rating. Narra"i.% !r E$$ay E.a(ua"i!nE; This appraisal method asked the evaluator to describe strengths and weakness of an employee$s behavior. @ome companies still use this method exclusively whereas in others the method has been combined with the graphic rating scale. Mana)%m%n" ,y O,+%'"i.%E ; The management by objectives performance appraisal method has the supervisor and employee get together to set objectives in quantifiable terms. Pair%# C!mDari$!nE ; The term used to describe an appraisal method for taking employee. &irst the names of the employees to be evaluated have been placed on separated sheets in a predetermined order so that each person has been compared with all other employees to be evaluated. The evaluator then checks the person he or she felt had been the better of the two on the criterion for each comparison. Typically the criterion has been the employees over all ability to do the present job. The number of tines a person has been preferred is tallied and the tally developed is index of the number being evaluated.

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RanBin)7 C The term ranking has been used to describe an alternative method of performance appraisal where the supervisor has been asked to order his or her employees in terms of performance from highest to lowest. 2%i)h"%# Ch%'B(i$"E; The term used to describe a performance appraisal method where supervisors or personnel specialists familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs.

PurD!$% !& Tra#i"i!na( P%r&!rman'% ADDrai$a(


Performance appraisal for evaluation using the traditional approach has served the following purposesE; Promotion separation and transfer decision. &eedback to the employee regarding how the organi"ation viewed the employeeKs performance. Avaluations of relative contributions made by individuals and entire departments in achieving higher level organi"ation goals. 0riteria for evaluating the effectiveness of selection and placement decisions including the relevance information used n the decision with in the organi"ation. 9eward decisions including merit increases promotions and other rewards. ,scertaining and diagnosing training and development decisions 0riteria for evaluating the success of training and development decisions. Information upon which work scheduling plans budgeting and human resources planning can be used. Two serious flaws in the traditional approach in the performance appraisal exist. The flaws areE )rgani"ational performance appraisal is typically primarily concerned with the past rather than being forward looking through the use of setting objectives or goals.

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Performance appraisal is usually tied to the employee$s salary reviewed. #ealing with salary generally overwhelmed and block creative meaningful or comprehensive consideration of performance goals.

D%.%(!Dm%n"a( P%r&!rman'% ADDr!a'h PurD!$%$


The developmental approach to performance appraisal has been related to employees as individuals. This approach has been concerned with the use of performance appraisal as a contributor to employee motivation development and human resources planning. The development approach contained all of the traditional overall organi"ational performance appraisal purposes and the following additional purposesE Provided employees the opportunity to formally indicate the direction and level of the employeeKs ambition. @how organi"ational interest it employee development which was cited to help the enterprise retain ambitious capable employees instead of losing the employees to competitors. Provided a structure for communications between employees and management to help clarify expectations of the employee by management and the employee. Provide satisfaction and encouragement to the employee who has been trying to perform well. EID%'"a"i!n &r!m a Mana)%r #!in) a P%r&!rman'% ADDrai$a( The following is typically expected from company manager when doing performance appraisalE Translate organi"ational goals into individual job objective. 0ommunicate managementKs expectations regarding employee performance.

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Provide feedback to employee about job performance in light of managementKs objectives. 0oach the employee on how to achieve job objectivesJrequirements. #iagnose the employeeKs strengths and weaknesses. #etermine what kind of development activities might help the employee better utili"e his or her skills improve performance on the current job.

Pr!,(%m !& 'ri"%ri!n


, brand definition of criterion is >that which is to be predicated?. This definition refers to the evaluative standards which measures are easy if the job is clearly defined but difficult if it is broad. ,t lower level of an organi"ation there are specific jobs and certain tangible and objective standards of performance can be identified. &urther up in the hierarchy jobs become more complex and clear;cut tangible standards of performance are difficult to specify. Irrespective of the level by and large most companies use eleven performance measuresE 1. Luantity of work %. Luality of work *. :aste and brokerage +. (oney earned 1. Bob knowledge 2. Bob tenure 8. ,bsenteeism .. 9ate of advancement -. @elf judgment 1<. Budgment by peers 11. Budgment by supervisors.

%8 1 P a g e

In$"ru'"i!n$ &!r u$in) D%r&!rman'% aDDrai$a( $y$"%m


PurD!$%7 The performance evaluation system is used to evaluate employees past work performance develop a work plan for the next review period and determine what resources are needed for improving performance to become more effective. Avaluations also develop employee$s potential through training and counseling. The process is designed to be interactive between the employee and the supervisor with the following objectives in mindE Cse to recogni"e and reward employees for positive work behavior. Cse the results as a basis for appropriate personnel actions. Ancourage employees to continuously improve support team endeavors develop professionally and perform at their maximum potential. 0ommunicate and clarify the goals and objectives of the division department and the 0ity in relation to the employeesK work expectation. Involve employees in improving their effectiveness and performance. Provide an employee improvement plan where performance is rated below standard.

%. 1 P a g e

P%r&!rman'% E.a(ua"i!n Sy$"%m7


The performance evaluation form is used for all performance reviews. This includes probationary evaluations 5expect Police and &ire have their own process7 annual evaluation and special evaluation for regular full time and regular part time employees. The evaluation periods are generally twelve months expect for special evaluations which may be for shorter periods of time. (erit step increases are conducted on the employeesK anniversary date 5assuming satisfactory performance7 and not during the annual performance review.

SuD%r.i$!r R%$D!n$i,i(i"y7
Aach department will conduct employee evaluations for all employees in the department during the same month. 'uman resources will notify department heads *< days prior to when evaluations are due. Aach supervisor completing the performance evaluation should review the following instructions the rating criteria definitions and familiari"e him or herself with the procedure prior to competing the evaluations. Cpon completion of the evaluation form by the supervisor 5rater7 and the reviewer 5one level above the rater7 then the rater will meet with the completed form for signatures. @upervisors should provide written comments on the evaluation form for each performance criteria and list specific examples. Cse 6J, if the rating criteria are not applicable. The supervisor is responsible for completing the evaluation process at the beginning of the rating period and again at 2 month to monitor progress and adjust time lines if necessary. ,t that time a new 1%;month work plan is established with the employee and the process repeats itself. @upervisors shall coordinate the discussion of performance evaluations with employees in a manner that allows privacy. The supervisor shall have the employee to complete the @elf Performance Avaluation &orm as a discussion tool.

%- 1 P a g e

F!rm$7
There are two performance evaluation forms which you will always useE The actual performance evaluation form which includes the cover page called the @ummary :orksheet. The Amployee @elf;Avaluation form. There are two other forms you may need to useE The Performance Improvement Plan form 5used when a rating is J6 Cnacceptable or J: Improvement needed7 and attached to Performance Avaluation form. Performance 3oals form 5used by department to follow up mid;year on goals set in evaluation7 optional and not returned to 'uman 9esources. Ra"in) Pr!'%$$ an# Cri"%ria7 1 M outstanding performance + M exceed expectations * M meet expectations % M needs improvement 1 M unacceptable , rating of 1 or % requires the supervisor to complete a Performance Improvement Plan form to document the problem including specific examples guidance on improvement a specific timetable for improvement and a follow up evaluation to monitor progress.

*< 1 P a g e

Si)na"ur% !n "h% E.a(ua"i!n F!rm


,fter the supervisor completes the performance evaluation with the employee both the supervisor and employee sign the form. The next level of review is the 9eviewer one level above the supervisor performing the evaluation 5the rater7. #epending on the #epartment structure the reviewer could be the #epartment head #eputy #irector or a #ivision (anager. The mid;year review will only involve the employee and hisJher supervisor with their signatures and the mid;year process does not go into the personnel file.

E.a(ua"i!n 2h%n a N%K SuD%r.i$!r i$ aDD!in"%#7


If the employee has an evaluation due and supervisor is appointed the new supervisor likely has not had the opportunity to properly evaluate the employeeKs performance. In this instant the new supervisor will evaluate the employee after -< days. If possible the supervisor that is leaving will do a close out evaluation for hisJher employees prior to leaving.

*1 1 P a g e

S"%D$ "! '!mD(%"% "h% annua( D%r&!rman'% %.a(ua"i!n Dr!'%#ur%E


S"%D 67 N!"i'% "! #%Dar"m%n" h%a#$7 human resources will notify department heads
*< days prior to when performance evaluations are due for full time and part time regular employees in their department. (anagersJsupervisors have *< days to complete the performance evaluations obtain signature and provide the original the human resources office for filling in the employees personnel file .The supervisor shall also retain a computer copyJfile copy for the midyear review process. 'uman resources will remind supervisors to schedule probationary evaluations on their calendar.

S"%D :7 B(anB D%r&!rman'% %.a(ua"i!n &!rm$7 managersJsupervisors obtain the


performance evaluation forms.

S"%D<7 R%.i%K +!, #%$'riD"i!n7 review the employee$s job description to see if any
changes are necessary. If there are increased responsibilities Jscope of work or a change in qualifications forward your edits to human resources for review. (inor differences in workload or added assignment that are industry or technology changes do not require a change to the job description. 5Individual employees do not amend their job descriptionsH this task is for the manager7

S"%D G7 S%(& %.a(ua"i!n &!rm7 provide a copy of the self evaluation form to the
employee. If the employee does not want to complete the form heJshe shall check the box and sign at the bottom of the form and return it to the supervisors. This completed form is used as a tool for discussion while the supervisors are completing the employees$ evaluation.

*% 1 P a g e

S"%D =7 C!mD(%"% "h% D%r&!rman'% %.a(ua"i!n ra"in) &!rm$7 The managers


Jsupervisors complete each section in performance evaluation forms 5page %;*plus7. If a section does not apply note 6J, for not applicable. :ritten comments are required and should include examples that support the rating the specific job element. @ection 1 to * 5Technical knowledge customer service and qualityJquantity of work7 apply to all positions. &or section +5,ttendance7 the supervisors should review the employees attendance record scheduled time away from the job and use of breaks. @ection1 5@afety and 9isk management7 applies to all jobs and should include notice of any accident injuries equipments usage or other safety related issues. @ection2 is only for department heads managers supervisors and lead workers. 6ext complete the section work plan for the next rating period completion achievable goals and projects as well as areas to improve upon. 6ext complete the training and development section. The raters the complete the summary worksheet cover pages for the evaluation form. This is done last and is and over all rating considering all the rating sectors. The performance goal forms5optional based on department head discussion is a departmental tool used during the midyear review o monitor progress completion date or makes comments concerning the goals. keep goals to a realistic number 5* to 17 and ones that are achievable we all have a tendency to put down more goals that we can reasonably achieve. ,lso some employees in entry level job may have only 1 or % goals or a training course to complete during the review period the supervisor should used their judgment and discussion their employees to arrive at goals for the work Plan . date. This list

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S"%D >7 -na''%D"a,(% !r ImDr!.%m%n" N%%#%# Ra"in)7 If y rate an employee


with a >1? Cnacceptable or >%? Improvement needed you must complete the performance improvement plan form. 'ave this completed form reviewed by the department head and 'uman 9esources prior to presenting it to the employee. This form is used to document performance and behavior problems that need corrective action. #ocumentation is critical for this type of rating. 6ote in the event the employee does not improve the documentation is important for corrective action. The notice of >Improvement 6eeded? or >unacceptable? rating must includeE The problem areas of performance that is determined to be unacceptable. Identify performance standards that must be achieved to meet acceptable standards. Provide a reasonable period of time demonstrate improved performance. Provide assistance to help them achieve the performance standards 5training counseling and coaching closer supervision feedback7. 0ommunicate with employee of the consequences if their performance does not improve and provide a deadline such as *<;-< days for a follow up review. 'owever this time line does not preclude immediate disciplinary action at any time by department head if the employeesK performance worsens during the rating period. , rating of N1 shall be reviewed and approved by the department head before being communicated to the employee.

S"%D @7 Mi#Cy%ar R%.i%K7 (id;point through the 1%;month rating period the manager
or supervisor will meet with the employee to review hisJher progress. This does not require any new information to be prepared merely review their performance goals and deadlines with the employee. ,t this step you may adjust the deadlines as necessary.

*+ 1 P a g e

S"an#ar# !& P%r&!rman'%


@tandards of performance are written statement describing how well a job should be performed. Performance standards are developed collaboratively with employees whenever possible and explained to new employees during the first month on the job.

Jo% #e&cri'tio( & E&&e(tia) Fu(ctio(&

*trate+ic )a( & A((ua) "oa)&

*ta(,ar,& of erfor-a(ce

!%&ervatio( & Fee,%ac.

erfor-a(ce A''rai&a)

erfor-a(ce #eve)o'-e(t
The performance standard provides a benchmark against which to evaluate work performance. :hile the job description describes the essential functions and the tasks to be done the performance standard defines how well each function or task must be performed in order to meet or exceed expectations. The Cniversity also establishes general criteria for evaluating work performance. S"an#ar#$ !& D%r&!rman'% ar% u$ua((y7 #eveloped in collaboration with the employees who do the tasks or functions. Axplained to new employees within the first month on the job.

*1 1 P a g e

The rating describes the level of performance of the individual employee compared to a job description and standard of performance. E LEI'%D"i!na(E Performance well exceeds expectations and is consistently outstanding. A L A,!.% EID%'"a"i!nE Performance is consistently beyond expectations. S L S!(i# P%r&!rman'%E Performance consistently fulfills expectations and at times exceeds them. I L ImDr!.%m%n" N%%#%#E Performance does not consistently meet expectation. - L -n$a"i$&a'"!ryE Performance is consistently below expectations. #eficiencies should be addressed as noted in the performance appraisal. ,s performance manager you will use these criteria to rate the employeesK performance. ,t the beginning of the appraisal period review these ratings and the performance standards for each position which reports to you so that you can fairly evaluate the employeesK performance.

Performance @tandards a answer the question >'ow will the employees and the performance manager know when the employee is meeting or exceeding expectation for his or her positionO?

3ui#%(in%$ &!r P%r&!rman'% S"an#ar#$ K%%D in min# "h% &!((!Kin) )ui#%(in%$ Kh%n Kri"in) y!ur D%r&!rman'% $"an#ar#$7 Performance standards should be related to the employeesK assigned work and job requirements. Pour reporting system should be adequate to measure and report any quantitative data you list.

*2 1 P a g e

Luantifiable measures may not apply to all functions. #escribe in clear and specific terms the characteristics of performance quality that are verifiable and that would meet or exceed expectations.

,ccomplishment of organi"ational objectives should be included where appropriate such as cost;control improved efficiency productivity project completion process redesign or public service.

Ch%'Bin) 0!ur S"an#ar#$


,fter you have written your performance standards check them against the questions in the following listE Ar% "h% $"an#ar#$ r%a(i$"i'H @tandards should be attainable and consistent with what is necessary to get the job done. @tandards for performance which meets expectations represent the minimum acceptable level of performance for all employees in that position. Ar% $"an#ar#$ $D%'i&i'H @tandards should tell an employee exactly which specific action and results he or she is expected to accomplish. Ar% "h% $"an#ar#$ ,a$%# !n m%a$ura,(% #a"a* !,$%r.a"i!n* !r .%ri&ia,(% in&!rma"i!nH Performance can be measured in terms of timeliness cost quality and quantity. Ar% "h% $"an#ar#$ '!n$i$"%n" Ki"h !r)aniAa"i!na( )!a($H @tandards link individual 5and team7 performance to organi"ational goals and should be consistent with these goals. Ar% "h% $"an#ar#$ 'ha((%n)in)H @tandards may describe performance that exceeds expectations. 9ecogni"ing performance that is above expectation or outstanding is crucial to motivating employee. *8 1 P a g e

Ar% "h% $"an#ar#$ '(%ar an# un#%r$"an#a,(%H The employees whose work is to be evaluated on the basis of the standards should understand them. @tandards should use the language of the job.

Ar% "h% $"an#ar#$ #ynami'H ,s organi"ational goals technologies operations or experiences change standards should evolve.

-$% !& B!!B$ an# S!&"Kar% &!r P%r&!rman'% ADDrai$a($


There are number of low cost paperbacks that can b handed out to the managerial staff to help them with their appraisals. @ince the advent o the use of computers a number of educational organi"ations are now using Performance ,ppraisal software. erfor-a(ce (o/ E(ter'ri&e is a software tool for logging events tracking goals providing effective feedback and writing employee reviews that maximi"e the potential of your team. &lexible enough to adapt to your present review system Performance now helps you become a better manager and get the best from your employees. &or a little more upscale package Performance !mpact "orkplace is easy to use to set goals for employees but are having trouble following up on those goals. )ther software such as #he Administrative $bserver for school systems is one of the more configurable stand;alone database package with an intuitive graphic interface geared towards the business environment is (I6#@)/GA 5(GP7. (GP is designed as enterprise level performance management software incorporating appraisal development resources *2< degree feedback performance logging etc. :hile the use of configurable software based tools are certainty making life easier the use of such tools are much more valuable.

*. 1 P a g e

R%$%ar'h M%"h!#!(!)y
S"a"%m%n" !& "h% Pr!,(%m
Avery business organi"ation large or small spend huge amount of money on 'uman 9esource. It is necessary therefore to find out how they are performing in order to design their future of the organi"ation. It may be to develop the employees or to correct the employees or to utili"e employee$s strength. This study is directed towards probing Performance ,ppraisal system as tool for employees at BAJAJ ALLIANZ LIFE INS-RANCE.

R%$%ar'h TyD%
There is $!'ia( r%$%ar'h in a '9 @urvey with particular reference to Performance ,ppraisal as a @ystem for employees at BAJAJ ALLIANZ LIFE INS-RANCE. *a-')e #e&i+(0 It is random sampling techniques where the samples were designed based on the nature of work qualification experience etc. *a-')e *i1e0 %< Amployees 9espondents Too) for co))ectio( of #ata0 @tructured questionnaire is used to collect the data. 0opy of questionnaire is placed at the ,nnexure of the project report. *- 1 P a g e

2et3o, of Co))ecti(+ #ata0 The questionnaires were floated to respondents through 9esearcher where the data was collected and returned by '9 Cnit. 2et3o, of A(a)4&i&0 1. The collected data were tabulated %. Percentage of respond was worked out *. ,nalysis is based on percentage frequency +. :eight age is given to high percentage in response factor 1. Avaluation 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.

+< 1 P a g e

Da"a Ana(y$i$ 5 In"%rDr%"a"i!n


In this system employees and managers set expectations and prepare plans for work and development at the beginning of the year. The key responsibilities and results 5D99s7 dimensions and behavioral expectations and the criteriaJstandards for the performance measurement are prescribed and clarified. ,lthough they may be expressed differently for different jobs the basic areas of measurement for all jobs are quality quantity cost and timeliness. To ensure that all employees receive feedback for maintaining or improving productivity two documented semi;annual feedback sessions are required. The supervisor uses discretion to schedule informal feedback based on individual employees$ needs. ,lthough a case study with a limited number of respondents cannot be widely generali"ed the results should be quite interesting to mangers who would like to think critically and seek ways to improve performance appraisal systems in organi"ations

+1 1 P a g e

art A0 er&o(a) #ata


1. To carry out any Project @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. Aducational background to understand the topic of the study so that they can be related age. A+e "rou' %1;*< *1;+< +1;1< Tota) No5 of Re&'o(,e(t& 1+ % + %< erce(ta+e 8< 1< %< 1<<

&rom the above data indicates that 8<= of respondents are of %1;*< age group 1<= of respondents are of *1;+< age group and %<= of respondents are of +1;1< age group. "e(,er6

+% 1 P a g e

"e(,er (ale &emale Tota)

No5 of Re&'o(,e(t& 1% . %<

erce(ta+e 2< +< 1<<

The above data indicates that 2<= of respondents are male rest +<= of respondents are female.

7ua)ificatio(6

7ua)ificatio( +* 1 P a g e

No5 of Re&'o(,e(t&

erce(ta+e

#iploma 3raduate Post 3raduate Tota)

% 2 1% %<

1< *< 2< 1<<

In the above data it is seen that 1<= of respondents are diploma in qualifications *<= of respondents are graduates and rest 2<= of respondents are post graduate.

++ 1 P a g e

#e&i+(atio(6

#e&i+(atio( (anager )fficer Bunior )fficer GP Tota)

No5 of Re&'o(,e(t& + 1< + % %<

erce(ta+e %< 1< %< 1< 1<<

&rom the above data it is seen that %<= of respondents are (anagerial post 1<= of respondents are at officer post %<= of respondents are junior officer and 1<= of respondents are GP in post.

Par" B7 R%$%ar'h Da"a


+1 1 P a g e

6. I$ "h% P%r&!rman'% ADDrai$a( Dr!'%$$ u$%r &ri%n#(yH a. 0%$ ,. N!

%.&o. 6 : #otal

$ptions 0%$ N!

&o. of 'espondents 6> G :?

Percentage ;? :? 6??

Re&'o(,e(t& a(, Re&'o(&e&6

+2 1 P a g e

;?M !& "h% r%$D!n#%n"$ ar% a)r%%# "! "h% a,!.% $"a"%m%n"

It is user;friendly and easily accessible within the organi"ation. It also provides a consolidated view. It captures an individual$s strengths improvement areas and also captures training courses recommended. It gives an opportunity to the employee to accept or decline. It is very flexible.

:?M !& "h% r%$D!n#%n"$ ar% #i$a)r%%# "! "h% $"a"%m%n"

It is a very easier tool where employee can fill in short time. ,s an employee need to know what is required of them in order to work effectively by this.

:. +8 1 P a g e

I$ P%r&!rman'% ADDrai$a( '!n#u'"%# !n "im%H

a. 0%$

,. N!

%.&o. 6 : #otal

$ptions 0%$ N!

&o. of 'espondents 6: ; :?

Percentage >? G? 6??

Re&'o(,e(t& & Re&'o(&e&6

+. 1 P a g e

>?M !& "h% r%$D!n#%n"$ a)r%%# "! "h% a,!.% $"a"%m%n" Performance ,ppraisal process will start on time. There is a fixed schedule to meet listed in detail at the beginning of the process. Process will be conducted as per the appraisal period.

G?M !& "h% r%$D!n#%n"$ #i$a)r%%# "! "h% $"a"%m%n" Process end will take long time and unintentionally however measuring quality issues do cause delays. Process 0ycle 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.

+- 1 P a g e

<.

D!%$ P%r&!rman'% ADDrai$a( Dr!'%$$ a$$%$$ &air(yH a. 0%$ ,. N!

%.&o. 6 : #otal

$ptions 0%$ N!

&o. of 'espondents 6> G :?

Percentage ;? :? 6??

1< 1 P a g e

Re&'o(,e(t& & Re&'o(&e&6

;?M !& "h% r%$D!n#%n"$ a)r%%# "! a,!.% $"a"%m%n" The process assessment is fair and justified with business units. It is objective process. (easuring an individual is fair. The metrics are adequate.

:?M !& "h% r%$D!n#%n"$ #i$a)r%%# "! "h% $"a"%m%n" ,cross 4usiness units does not yield right results. There are some issues with performing employees not getting proper result of the appraisal. *2< feedback systems should be there. There is an element of subjectivity. The presence of ,ppraiser and reviewer is aimed at eliminating the subjectivity.

11 1 P a g e

1% 1 P a g e

G.

I$ P%r&!rman'% ADDrai$a( Dr!'%$$ $imD(% "! un#%r$"an#H a. 0%$ ,. N!

%.&o. 6 : #otal

$ptions 0%$ N!

&o. of 'espondents 6@ < :?

Percentage ;= 6= 6??

Re&'o(,e(t& & Re&'o(&e&6 1* 1 P a g e

;=M !& "h% r%$D!n#%n"$ a)r%%# "! "h% a,!.% $"a"%m%n" It is simple to understand and follow pre;process. It clears to express as individual his strength and capacity. It gives an opportunity to show case his achievement. It helps to understand the required capacity to meet requirements. 6?M !& "h% r%$D!n#%n"$ #i$a)r%%# "! "h% $"a"%m%n"$ , Performance ,ppraisal tool should be kept as simple as possible while meeting objectives. , Performance ,ppraisal tools should be based on assessment of work quantity quality and knowledge of job but not personality. Process cycle time has to be reduced.

1+ 1 P a g e

=.

D! y!u r%'%i.% an !ri%n"a"i!n !n h!K "! '!n#u'" aDDrai$a( Dr!'%$$H a. 0%$ ,. N!

%.&o. 6 : #otal

$ptions 0%$ N!

&o. of 'espondents 6: ; :?

Percentage >? G? 6??

11 1 P a g e

Re&'o(,e(t& & Re&'o(&e&6 >?M !& "h% r%$D!n#%n"$ a)r%%# "! "h% a,!.% $"a"%m%n" #etailed orientation is given to all levels at the beginning of the process. Garious training programs are available and discussed with superiors. G?M !& "h% r%$D!n#%n"$ #i$a)r%%# "! "h% $"a"%m%n" @ometimes process will be failed due to some internal problems after getting orientated on the Performance ,ppraisal system.

>.

4!K mu'h "im% i$ $D%n" in Dr%Darin) &!r &%%#,a'B $%$$i!nH

12 1 P a g e

aC 6 h!ur.

,C : h!ur

%.&o. 6 : #otal

$ptions 6 h!ur : h!ur

&o. of 'espondents ; 6: :?

Percentage G? >? 6??

Re&'o(,e(t& a(, Re&'o(&e&6 G?M !& "h% r%$D!n#%n"$ a)r%%# "! 6 h!ur $"a"%m%n" 18 1 P a g e

(ore time will be spent if one employee worked under different managers for different assignments. It is necessary to know the earlier manager$s feedback on the employee to assess properly. In the Performance ,ppraisal system no recordsJdata are available of confirmation appraisal and project end appraisal. >?M !& "h% r%$D!n#%n"$ a)r%%# "! : h!ur$ $"a"%m%n" ,pproximately % hours 1 hour for collecting feedback and brainstorming and 1 hour for filling 9eview. 1 hour need to have things documented on how an employee has been appraised. There different process and have their strengths or improvement plans throughout the year. &eedback session involved revision of individual$s accomplishments during the appraisal period. 'isJher strengths improvement areas and training ! development.

@.

In y!ur !Dini!n h!K i$ !.%ra(( P%r&!rman'% ADDrai$a( $y$"%m in BAJAJ ALLIANZ LIFE INS-RANCEH

1. 1 P a g e

a. EI'%((%n" %.&o. 6 : < G #otal

,C 3!!# $ptions EI'%((%n" 3!!# A.%ra)% P!!r

'C A.%ra)%

#C P!!r Percentage =? <? :? C 6??

&o. of 'espondents 6? > G C :?

Th% a,!.% #a"a Dr%#i'"$ "ha" "h% Dr%$%n" aDDrai$a( $y$"%m $"a"u$ in "h% '!mDany Kh%r% =?M !& "h% %mD(!y%%$ r%$D!n#%# "! ,% %I'%((%n"* <?M r%$D!n#%n" "! ,% )!!#* an# :?M r%$D!n#%# a$ a.%ra)% i.%. +u$" $a"i$&i%#. Thu$ "h% ma+!ri"y !& r%$D!n#%n"$ ha.% .i%K%# "h%ir !Dini!n "ha" "h% Dr%$%n" aDDrai$a( $y$"%m i$ )!!#.

;.

a/ Ar% y!u $a"i$&i%# Ki"h "h% 'urr%n" ADDrai$a( $y$"%mH a. 0%$ ,. N!

%.&o. 1- 1 P a g e

$ptions

&o. of 'espondents

Percentage

6 : #otal

0%$ N!

6G > :?

@? <? 6??

Re&'o(,e(t& a(, Re&'o(&e&6 @?M !& "h% r%$D!n#%n"$ a)r%%# "! "h% a,!.% $"a"%m%n" It is simple to understand and follow pre process. It is clear to express as individual his strength and capacity. 2< 1 P a g e

It gives an opportunity to show case his achievement. It helps us to understand the required capacity to meet requirements. <?M !& "h% r%$D!n#%n"$ #i$a)r%%# "! "h% $"a"%m%n" @uggested by some managers to have half yearly appraisal system. Promotion salary revisions can be dealt during annual appraisal. 'alf yearly appraisal will help in motivating keeping employees known of peer strength and improvement areas. 0onfirmation appraisal and project end appraisal process needs to be automated. In the process of performance appraisal cross business unit appraisal process should be smoothened. Performance ,ppraisal should be subject to regular evaluation and review.

21 1 P a g e

;. ,/ I& n!" "h%n Kha" ar% "h% ar%a$ n%%# "! ,% imDr!.%#H a. Tim% %.&o. 6 : #otal ,. Pr!'%$$ $ptions Tim% Pr!'%$$ &o. of 'espondents @ 6< :? Percentage <= >= 6??

Th% a,!.% #a"a Dr%#i'"$ "ha" <=M !& "h% r%$D!n#%n" n%%# "! 'han)% "h% #ura"i!n !& PA $y$"%m an# r%$" !& "h% 6< r%$D!n#%n"$ i.%. >=M n%%# "! 'han)% "h% Dr!'%$$ !& D%r&!rman'% aDDrai$a(.

2% 1 P a g e

9.

D! y!u &%%( any #i&&i'u("y in han#(in) "h%mH a. 0%$ ,. N!

%.&o. 6 : #otal

$ptions 0%$ N!

&o. of 'espondents G 6> :?

Percentage :? ;? 6??

Th% a,!.% #a"a in#i'a"%$ "ha" ;?M !& "h% r%$D!n#%n"$ &%%($ n! #i&&i'u("y Khi(% han#(in) D%r&!rman'% aDDrai$a( $y$"%m Khi(% "h% r%$" !& "h% :?M !& "h% r%$D!n#%n" &%%($ (i""(% #i&&i'u("y.

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1<. :hat other process can be included making the appraisal process much betterO a. MBO %.&o. 6 : < T!"a( ,. Cri"i'a( In'i#%n" m%"h!# $ptions MBO Cri"i'a( In'i#%n" M%"h!# 2%, ,a$%# aDDrai$a( $y$"%m :? 6?? '. 2%, ,a$%# aDDrai$a( $y$"%m Percentage G? :? G?

&o. of 'espondents ; G ;

Th% a,!.% #a"a in#i'a"%$ "ha" %Eua( D%r'%n"a)% !& r%$D!n#%n" n%%# "! a## MBO a$ K%(( a$ 2%, ,a$%# aDDrai$a( $y$"%m in "h%ir !r)aniAa"i!n i.%. G?M an# "h% r%$" :?M !& !"h%r n%%#$ "! in'(u#% Cri"i'a( in'i#%n" M%"h!#.

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re&e(t A''rai&a) *4&te- *ati&factio( Leve)6 Particulars 3!!# Sa"i$&a'"!ry P!!r #otal 'espondents 6: > : :? Percentage >? <? 6? 6??

Th% a,!.% #a"a in#i'a"%$ "h% Dr%$%n" aDDrai$a( $y$"%m $"a"u$ in "h% '!mDany Kh%r% >?M !& "h% %mD(!y%%$ r%$D!n#%# "! )!!#* <?M r%$D!n#%# "! $a"i$&a'"!ry i.%. +u$" $a"i$&i%# an# "h% r%mainin) 6?M ar% n!" $a"i$&i%# an# Kh! ha.% n!" r%$D!n#%# a$ D!!r. Thu$* "h% ma+!ri"y !& "h% r%$D!n#%n"$ ha.% .i%K%# "h%ir !Dini!n "ha" "h% Dr%$%n" aDDrai$a( $y$"%m i$ )!!#.

Efficie(c4 of t3e 're&e(t a''rai&a) &4&te- i( e-')o4ee ,eve)o'-e(t6

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Particulars 0%$ N! #otal

'espondents 6> G :?

Percentage ;? :? 6??

Th% a,!.% #a"a $h!K$ "ha" ;?M r%$D!n#%n"$ ar% a''%D"in) "ha" P%r&!rman'% ADDrai$a( ha$ aim%# a" #%.%(!Dm%n" !& "h% %mD(!y%%* an# !n(y :?M !& "h%m #i$a)r%%# "! "h% Dr%$%n" $y$"%m. 4%n'%* m!$" !& "h% r%$D!n#%n"$ ar% a)r%% "ha" P%r&!rman'% ADDrai$a( i$ aimin) "! "h% 'ar%%r #%.%(!Dm%n" !& "h% %mD(!y%%.

re&e(t A''rai&a) &4&te- i( &etti(+ /or. tar+et&6

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Particulars 0%$ N! #otal

'espondents 6G > :?

Percentage @? <? 6??

Th% a,!.% #a"a r%.%a($ "ha" D!$$i,i(i"y !& $%""in) "ar)%"$ &!r "h% #i&&%r%n" +!,$ "h%y #! un#%r #i&&%r%n" #%Dar"m%n"* @?M r%$D!n#%n"$ ha.% $ai# y%$ &!r "h% +!, "h%y #!. <?M r%$D!n#%n"$ ha.% $ai# n! &!r "h% Eua(i"a"i.% an# 'r%a"i.% +!,$ "h%y #!. Th%r%&!r%* ma+!ri"y !& r%$D!n#%n"$ ha.% a)r%%# "h% D!$$i,i(i"y !& $%""in) K!rB "ar)%"$. Th% "ar)%" &!r "h% +!, "h%y #! %.%n "h!u)h %.%ry +!, n%%#$ '%r"ain #%)r%% !& 'r%a"i.i"y Khi'h #%D%n#$ uD!n "h% na"ur% !& +!,.

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Actio(& ta.e( after erfor-a(ce A''rai&a)6 Particulars -$%&u( #i$'u$$i!n$ N! #i$'u$$i!n$ On(y &ai(ur% ar% #i$'u$$%# 3%niu$ F%%#,a'B i$ )i.%n #otal 'espondents 66 G : < :? Percentage == :? 6? 6= 6??

Th% a,!.% #a"a $h!K$ a'"i!n$ "aB%n a&"%r "h% P%r&!rman'% ADDrai$a( ,y "h% aDDrai$%r "h% mana)%m%n" ==M r%$D!n#%n"$ !& "h%m r%D!r"%# "h%y "aB% uD u$%&u( #i$'u$$i!n$ !n "h% %.a(ua"i!n an# r%$u("$* G !& "h%m i.%. :?M ha.% #%ni%# an# $ay$ n! #i$'u$$i!n* 6?M $ai# !n(y &ai(ur%$ ar% #i$'u$$%#* n! #i$'u$$i!n i$ ma#% !n a'hi%.%m%n"* 6=M a)r%%# "ha" "h%y )%" )%niu$ &%%#,a'B !n %.a(ua"i!n. Thu$* ma+!ri"y !& r%$D!n#%n"$ "!(# "h%y ar% u$%&u( #i$'u$$i!n$ Ki"h aDDrai$%r a&"%r D%r&!rman'% aDDrai$a(.

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Avai)a%i)it4 of fee,%ac. i( erfor-a(ce A''rai&a) &4&te-6 Particulars 0%$ N! #otal 'espondents 6@ < :? Percentage ;= 6= 6??

Th% a,!.% #a"a #i$"ri,u"%$ Kh%"h%r "h% Dr%$%n" aDDrai$a( $y$"%m i$ u$%# in )%""in) "h% &%%#,a'B &r!m "h% %mD(!y%%$* ;=M r%$D!n#%n"$ "!(# "h% Dr%$%n" aDDrai$a( $y$"%m h%(D$ in )i.in) "h% &%%#,a'B &r!m "h% %mD(!y%%$ an# !n(y 6=M r%$D!n#%n"$ "!(# "h% %Ii$"in) aDDrai$a( $y$"%m i$ n!" h%(Din) in )%""in) Dr!D%r &%%#,a'B &r!m "h% %mD(!y%%$. Th%r%&!r%* ma+!ri"y !& "h% r%$D!n#%n"$ ar% a''%D"in) "ha" "h% Dr%$%n" aDDrai$a( $y$"%m h%(D in )%""in) &%%#,a'B &r!m "h% %mD(!y%%$.

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FINDIN3S
4,B,B ,//I,6Q /I&A I6@C9,60A follows two types of ,ppraisal process F 3raphic 9ating @cales and 4ehaviorally ,nchored 9ating @caling 54,9@7 which is user;friendly and easily accessible within the organi"ation. &eedback is given to the employees about their performance. Promotions schemes exist in the organi"ation according to the employees$ performance. It captures an individual$s strengths improvement areas ! also captures training courses recommended. Performance ,ppraisal process will start on time and process will be conducted as per the appraisal period. There is a fixed schedule to meet listed in detail at beginning of the process. The process assessment is fair and justified with business units. It is objective process measuring an individual is fair but the metrics are inadequate. ,cross business units does not yield right results. There are some issues with performing employees not getting proper result of the appraisal.

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Process is clear to express as an individual his strengths and capacity. It gives an opportunity to show case his achievement. It helps to understand the required capacity to meet requirements. , Performance ,ppraisal system tools should be based on assessment of work performance not personality. , Performance ,ppraisal system tools should be kept as simple as possible while meeting objectives. #etailed orientation will be given at all level at beginning of the performance appraisal process. Garious 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 individual$s accomplishments during the appraisal period. 'isJher strengths improvement areas and training and development. (ore time will be spent if one employee worked under different managers for assignments. It is necessary to now the earlier manager$s feedback on the employee to assess properly. In Performance ,ppraisal includes Luantitative and qualitative measures.

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It will clarify organi"ational goals and expectations. It provides a mechanism for improving communication between workers and superiors. It will decide upon future work requirements and objectives. 4y this employee can discuss ideas comments and suggestions. #evelop an action plan for indentifying strategies which will make it possible for the employees to achieve the objective discussed. Performance ,ppraisal should be developed and implemented in consultation with employees and superiors. Performance ,ppraisal should operate equitable throughout the organi"ation. Promotions salary revisions can be dealt during annual appraisal. 3roup work and team work exist in an organi"ation. (ajority of the executives give reasons for not completing their targets. 9eview and reset of the task is not made uniformly.

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CONCL-SION
(ost of the time Performance ,ppraisal is used for determining compensation increases training need identification and for promotions. The Performance ,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 just be very difficult to bring this sort of change. This in fact calls for a cultural change where in emphasis is not only given to the )utcome or the end result but also on the process and effort made to achieve the result. :hile discussing of the process ! effort we need to focus on the leadership style his approach of consulting others his ability to learn his approach as a team member his effort in planning his days and week and his overall orientation for subordinates development. ,ll this really calls for a different ball games wherein the concerned supervisors are able to emphasi"e with his sub;ordinates and is really above to understand his emotional world. In this era where every individual is competing with each other and where very tight schedules are drawn without much scope for slippages there is every probability that conflicts are going to become a common affair. ,s such is has become all the more important that a supervisor makes all out effort to understand emotional world of the sub;ordinate in terms of his hindering and facilitating factors in terms of achieving his goals what help the person growth and his own ambition in the next *;+ years what is happening on his family front. ,ll this shall only happen if the sub;ordinate 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 sub;ordinate to sit with his sub;ordinate and have a face to face 8* 1 P a g e

interaction in a non threatening atmosphere. :hat 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 )rgani"ational goals.

RECOMMENDATION
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 company. The project leaders are dissatisfied with the way responsibilities are distributed. The company needs to works in this area and bring more clarity in the definitions of roles and responsibilities. The (anagement should design training and development programs career plans for their employees$ on the basis of skills knowledge needs. ,ppreciate employees$ on the basis of employees$ work performance by Promotion or increment in the salaries. The performance culture of the company is another area where needs to be done to improve the training regimen so that involvement of the employees is enhanced which finally would build the morale and productivity would be enhanced. Amployees 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. key employees of the

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LIMITATIONS
,ny research study will be restricted in scope by certain inherent limitations that participated by the choice of the research design. This study has the following limitationsE Aven though the survey was conducted for the employee performance review the study does not match with the entire population in the company. 4ecause of time constraints the sample si"e is restricted to %< 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 %< respondents as they were busy and could not respond so well to the questionnaires. (ost of the organi"ation hesitates to give confidential '9 information which is needed for the study like expectation in salary periodical incremental percentage.

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ANNEN-RE
O-ESTIONAIRE

Par" A7 Nam% !& "h% R%$D!n#%n" A)% 3%n#%r Oua(i&i'a"i!n D%$i)na"i!n 7 PPPPPPPPPPPPPPPPPPPPPP 7 PPPPPPPPPPPPPPPPPPPPPP 7 PPPPPPPPPPPPPPPPPPPPPP 7 PPPPPPPPPPPPPPPPPPPPPP 7 PPPPPPPPPPPPPPPPPPPPPP

Part 4E 1. Is the Performance ,ppraisal process user friendlyO a. Pes %. b. 6o

Is Performance ,ppraisal conducted on timeO a. Pes b. 6o

*.

#oes Performance ,ppraisal process assess fairlyO a. Pes b. 6o

+.

Is Performance ,ppraisal process is simple to understandO a. Pes b. 6o

1.

#o you receive an orientation on how to conduct appraisal processO a. Pes b. 6o

2.

'ow much time is spent in preparing for feedback sessionO

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a; 1 hour 8.

b; % hour

In your opinion how is overall performance appraisal system in >4,B,B ,//I,6Q /I&A I6@C9,60A?O a. Axcellent b; 3ood b. 6o c; ,verage d; Poor

..

a7 ,re you satisfied with the current appraisal systemO a. Pes

b7 If not then what are the areas need to be improvedO a. Time -. a. Pes b. Process b. 6o #o you feel any difficulty in handling themO

1<. :hat other process can be included making the appraisal process much betterO a. (4) b. 0ritical Incident (ethod c. :eb based (ethod.

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BENC4MARKIN3

Performance appraisal is very important for any company. It helps to make the companies employee work better and show good result for the company too. This helps the company to turn out to be profit making company. ,s in 4,B,B ,//I,6Q /I&A I6@C9,60A we are using the >9ating scales? or >&air comparison method? mostly to grade the performance of the employees. The method used by the company is very fair and it is very easy to be adopted by the personnel$s. This method is very convenient to be used. 4ut 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 *2<;degree performance appraisal in the company. 4efore they were using the same method as used by 4,B,B ,//I,6Q /I&A I6@C9,60A at times they used >&orced choice method? also to rate the performance which affected the companies working to a great extent. 4ut 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 *2<;deree performance appraisal the result of using this method is that everyone in the company is satisfied by it. 'ence 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.

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BIBLIO3RAP40

1. G @ P 9ao 'uman 9esource (anagement ,nurag Bain for Axcel 4ooks 6ew #elhi. %. #r. D ,shwathappa 'uman 9esource ! Personal management T,T, (c3raw;'ill Publishing 0ompany limited 6ew #elhi. *. Prem 0hadha Performance (anagement
+. www.appraisals.naukrihub.com

1. www.performance;appraisal.com 2. www.bajajallian".com 8. :ikipedia ;,n Ancyclopedia

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