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Project Study Report



Training Undertaken at


Submitted in partial Fulfillment for the

Award of degree of

Master of Business Administration

Submitted By:- Submitted to:-

Aarti Sharma Mr. Pramod Gupta
MBA 2year (Sr. Lecturer )





The Summer Training of a management student plays an important role to develop him
a well, groomed professional. It is a golden opportunity for him to give the theoretical
concepts a practical shape in the field of application. It gives him an idea of dynamic and
versatile professional world as well as an exposure to the intricacies and complexities of
corporate world.
My summer training for 45 days at Reliance Communication Limited, Jaipur was an eye
opening experience to see the impact of liberalization of 90’s. It has brought the
corporate sector into global mainstream and momentous market reforms.
As the telecommunication industry is marching with gushing speed towards the horizon,
Reliance Communication Limited is also heading with great speed to keep pace with the
basic telephony.
In M.B.A we are taught above the subjects, which if not applied properly is a simple
waste of time. At Reliance Communication Limited I got a chance to apply my theory to
the latest technological, general management and marketing environment.
In the 2 months of exposure I learned a lot on various aspects of organizational
structure, departments, technology, communication and their impact. Now after 2
months I can say one thing for sure that the best way to learn is at work.
It was a real interesting experience and I enjoyed every part of it and hope that it would
be helpful in my future.


I am very thankful to Mrs. Shweta Prakash, (HR), and Reliance
Communication Ltd. for having given me an opportunity for training in the company.
I express my sincere thanks to Miss Anjali Variyanni, (HR) of Reliance Communication
Ltd., for involving me in day-to-day work at the office, which gave me an insight to the
actual environment in the industry.
I extend my thanks to my research guide Mrs. Shweta Prakash, HR Department for
giving me his valuable time out of his busy schedule and guidance in my project. It was
very kind of him to constantly encourage me during my training at the company and to
allow me to share some of his work which indeed enhance my knowledge about the
working of the department, ways in which things are planned and most of all the
execution that follows.

My sincere appreciation to Mr. Uma Shankar their valuable suggestions and critical
comments surely would be of great help in the longer run. They spread their valuable
time to respond to my queries. Their valuable suggestions about handling and analysis
of data collected in my work are also appreciable. Their constant moral support during
my training is appreciable.
Thanks are due to all other team members of the Human Resources Department for
their immense cooperation.

(Aarti Sharma)


I AARTI SHARMA student of M.B.A of A.I.E.T. College, alwar. Here by declare that all
COMMUNICATION in this report is based on my experience and study during my

I further declare that all the information and facts furnished in this project report are
based on my intensive research and findings. They are first hand and original in nature.

Place: jaipur (Aarti Sharma)


A Performance Management system “is a formal structured system of
measuring and evaluating an employee’s job, related behavior and outcomes to
discover how and why the employee is presently performing on the job and how the
employee can perform more effectively in the future so that the employee, organization
and society all benefits.”

Performance Management system is the systematic evaluation of

individual with respects to his/ her performance on the job and his potential for
development. The performance being measured against such factors as job knowledge,
quality and quantity of output, initiative, leadership abilities, supervision, dependability
co-operation, judgment, versatility, health and the like. Assessment should not be
confined to past performance alone. Potential of the employee for future performance
must also be assessed.

cover Page
I. Preface
II. Acknowledgement
III. Declaration

IV. Executive summary


1. About the Company 7-20

a. Reliance Group 8
b. Business 9
c. Reliance Major Mile Stones 10-11
d. Vision 12-13
e. Mission 13-14
f. Organization Structure 15
g. Work Levels 16-20
2. Research Methodology 21-22
3. Detailed study of HR Department 23-44
a. Human Resource Planning 24-26
b. Recruitment 27-28
c. Selection 29-30
d. Induction 31-33
Induction In Reliance Communication Ltd. 34-43
4. General Introduction 45-65
Performance Management system
• Objective 45
• Suggested Format 46-47
• Methodology 48-49
• Methods 50-58
Management system System At Reliance Communication Ltd. 59-65
5. Findings & Analysis 66-75
6. Conclusion 76
7. Recommendations 77-80
8. Suggestion 81-83
9. Questionair
10.Bibliography 85


Reliance Communication is the out come of the Late visionary Dhirubhai Ambani's
(1932-2002) dream to herald a digital revolution in India by bringing affordable means of
information and communication to the doorsteps of India's vast population.

"Make the tools of Communication available to people at an affordable cost, they will
overcome the handicaps of illiteracy and lack of mobility", Dhirubhai Ambani charted out
the mission for Reliance Communication in late 1999. He saw in the potential of
information and communication technology a once-in-a-lifetime opportunity for India to
leapfrog over its historical legacy of backwardness and underdevelopment.

Working at breakneck speed, from late 1999 to 2002 Reliance Communication built the
backbone dream into reality for a digital India – 60,000 kilometers of fiber optic
backbone, crisscrossing the entire country. The Reliance Communication pan-India
network was commissioned on December 28, 2002, the 70 th – birth anniversary of
Dhirubhai. This day also marked his first birth anniversary after his demise July-6, 2002.


The Reliance group founded by Dhirubhai H. Ambani (1932-2002) is India's largest
business house with total revenues of over Rs 99,000 crore (US $ 22.6 billion), cash
profit of Rs 12,500 crore (US $ 2.8 billion), net profit of Rs 6,200 crore (US $ 1.4 billion)
and exports of Rs15, 900 crore (US$ 3.6 billion).

The group activities span exploration and production (E&P0 of oil and gas, refining and
marketing, petrochemicals (polyester, polymers and intermediates), textiles, financial
services and insurance, power, telecom and communication initiatives. The group
exports its products to more than 100 countries the world over. Reliance emerged as
India's Most Admired Business House, for the third successive year in a TNS Mode
survey for 2003.
The Reliance Group companies include: Reliance Industries

Limited, Reliance Capital Ltd., Reliance Industrial Infrastructure Ltd., Reliance Telecom
Ltd., Reliance General Insurance Company Ltd., Indian Petrochemicals Corporation Ltd.
and Reliance Energy Ltd.


Reliance Communication offers a complete range of telecom services, covering mobile
and fixed line telephony including broadband, national and international long distance
services, data services and a wide range of value added services and applications that
helps enhancing productivity of enterprises and individuals.
Reliance India mobile, the first of Communication initiatives was launched on
December 28, 2002, the 70th birthday of the Reliance group founder, Shri Dhirubhai H.
This marks the beginning of Reliance's dream of ushering in digital revolution in India by
becoming a major catalyst in improving quality of life and changing the face of India. It
aims to achieve this by putting the power of information and communication in the hands
of the people India at affordable costs.
Reliance Communication will extend its efforts beyond the traditional value chain to
develop and deploy telecom solutions for India's farmers, businesses, hospitals,
government and public sector organizations.
Reliance Communication is in the process of setting up best-in-class work facilities
across major cities in India. At Mumbai, the Dhirubhai Ambani Knowledge City hosts
more than 3000

professionals with a range of office complexes, food courts, avenues and boulevards,
fountains, video conferencing and other advanced communication infrastructure.
Apart from the physical work setting, Reliance Communication is fostering a work
climate marked by positive energy, teamwork and performance ethic.
We are committed to building a non-hierarchical and open work environment... a result
driven meritocracy.

"We bet on people" said Dhirubhai Ambani, the legendary founder.

This is at the core of Reliance Communication Business philosophy. Reliance

Communication believes in hiring world-class talent and supporting them with an
enabling organizational framework.

Reliance - Major Milestones
First IPO to the Indian Public.
Launched Phase 1 of the Polyester Filament Yarn (PFY) Plant.
Entered Phase 2 of the Polyester Filament Yarn (PFY) plant.
Started the Polyester Staple Fiber (PSF) Plant.
Started the Linear Alkyl Benzene (LAB) Plant.
Started the PX Plant.
Set up the Vinyl Chloride Monomer (VCM) and PVC plants).
Offered the first ever Euro Issue of Global Depository Receipts by an Indian company
Set a record with Reliance Twin issues that received over 1 million investor applications.
India’s largest public offering – Reliance Petroleum Issue.
Offered the second Euro issue of GDR.
Net profit crossed the Rs.1, 000 crore mark (Rs 1,065 crores or US$ 338 million),
Unparalleled in the Indian Private sector.
Reliance became the first private sector company to be rated by international credit
rating agencies. S&P rated BB+, stable outlook, constrained by the Sovereign Ceiling.
Moody’s rated Baa3, Investment grade, constrained by the Sovereign Ceilings.
Completion of Rs. 9,000 crore (US $ 2.5 billion) Hazira complex increasing production

From 1.5 million tones to more than6 million tones.
First corporate in Asia to issue 50 and 100 years bond in US debt market.
Following plants commissioned, 000 TPA bottle-grade PET plant
120, 000 TPA MEG plant, 000 TPA PTA plant 200,000 TPAPE plant.
Jamnagar Petrochemicals complex and bulk of integrated refinery complex
Comprising: World’s largest grassroots refinery India’s largest port with capacity of 50
million TPA
World’s largest PX Plant of 1.4 million TPA World’s largest PP plant of 0.6 million TPA
Captive power plant of over 300 MW World class product handling, storage, and
dispatch facilities.
Started commercial production of million TPA refineries, the 5th largest in the world.
RIL and RPL become India’s two largest companies in terms of all major financial
RPL’s merger with RIL to create India’s first and only private sector Fortune Global 500


"We will leverage our strengths in executing complex global-scale projects to

make leading edge information and communication services affordable by all
individual consumers and businesses in India. We will offer unparalleled value to
create customer delight and enhance business productivity. We will also generate
value for our capabilities beyond Indian boarders while enabling millions of
knowledge workers to deliver their service globally."

Reliance Communication envisions a digital revolution that will sweep the country and
about a new way of life. A digital way of life for a new India.

With mobile devices, network and broadband linked to powerful digital networks,
Reliance Communication will usher fundamental changes in the social and economic
landscape of India.

Reliance Communication will help men and women connect and communicate with each
other. It will enable citizens to reach out to their work place, home and interests, while
on the move. It will enable people to work, shop, educate and entertain themselves
round the clock, both in the virtual world and in the physical world. It will make available
television programmes, movies and news capsules on demand. It will unfurl new
simulated virtual worlds with exhilarating experiences behind the screens of computers
and televisions.

Users of Reliance Communication's full range of services would no longer need

audiotapes and CDs to listen to music. Videotapes and DVDs would not be necessary to
see movies. Books and CD ROMs would not be needed to get educated. Newspaper
and magazines would not be required to keep abreast of events. Vehicles and wallets
will become unnecessary for shopping.

Reliance Communication will disseminate information at a low cost. “Make a telephone
call cheaper than a post card." These prophetic words of Dhirubhai Ambani will be a
metaphor of profound significance for Reliance Communication.

Reliance Communication will regularly unfold new applications. Continually adapt new
digital technologies. Create new customer experiences. Constantly strive to be ahead of
the world.

Reliance Communication will transform thousands of villages and hundreds of towns

and cities across the country.
Above all, Reliance Communication will pave the way to make India global leader in the
knowledge age.


To create an integrated infrastructure with state of the art digital technology to provide
innovative, cost effective and world class convergent services to our customers.

Reliance Communication will be India's defining services provider and the most
preferred one among other companies.

Reliance Company will achieve dominant market share in India in coming one or two
years and will rank among the world's top 10 companies by 2007.


Facilitate, coach and enable best in class and leading edge HR practices across the
extended enterprise of Reliance Communication and there by nurture a customer
center, positive energy organization that will maximize stakeholder satisfaction.


 To provide integrated services combining infrastructure related services and

connectivity to deliver and results.
 Exploit convergence of Infotech and Telecom.
 Provide end-to-end services and managed applications.
Reliance is building a nationwide, unlimited bandwidth, connecting top 115 cities in 1 st
phase and then eventually reaching to a level of connecting 1500 cities by the end of
year 2005 representing 50% of India's GDP.
 All optics, facilities based. Intelligent IP networks robust and scalable.
 Reliance will leverage its bandwidth and related infrastructure to capture value
across the entire digital chain.


The organization structure defines various levels of organization i.e. Business, Work
Centers, Functions, Circles, Cities, etc. The Reliance Communication Organization
structure includes:
Business Unit: Enterprises, consumer, Wholesale, & Web stores
Work Centers: Network (O&M - Wireless, O&M - NLD/ILD, O&M - IDC, O&M - OSP,
EWC- Long Distance, EWC-Wireless, EWC-Wire line, OSS, ITC, NOC), Call Center,
BSS, (CRM, RA) m, Billing and Collection, Applications and Solutions Group
Functions: HR, Commercial, Purchase/Logistics, IT Infrastructure, And Corporate
Staff Function Communication operations are spread over 673 cities in the following

1. Andhra Pradesh 2. Delhi and Rajasthan

3. Gujarat 4. Karnataka
5. Kerala 6. M.P.& Orissa
7. Rest of Maharashtra 8. Mumbai
9. Punjab, Haryana & H.P. 10. Tamilnadu
11. U.P. (East & West) 12. West Bengal & Bihar


The organization structure also defines the organizational functions, considering the
nature and scope of functions to be performed. The following four work levels broadly
indicate the nature of accountability and responsibility assigned to role holders at the
work level.

1. L1-Leadership 2. L2- Managerial
3. L3-Executive 4. L4-Support
5. Designation

Assistant Manager
Deputy Manager
Senior Manager
Assistant General Manager
Deputing General Manager
General Manager
Assistant Vice President
Vice president
Senior Vice President


The $8 billion telecommunications sectors in India have undergone a major

transformation in the past couple of decades. From a complete monopoly of the
public sector, the telecom industry has witnessed the breaking down of monopolies
and significant policy reforms, favoring the entry of private players. The private
sector has been allowed to make a foray not only into value added services, such as
cellular and paging services, but also the basic telephony services.

Reforms have taken place in the telecom sector in three phases. The first phase
began in the 1980s when in 1984; private manufacturing of customer premise
equipment was given the go- ahead. Proliferation of individual STD/ISD/PCO
network took place through out the country by way of private individual’s
franchisees. Also, two large corporate entities, the Mahanagar Telephone Nigam
(MTNL) and Bharat Sanchar Nigam Ltd. (BSNL) were created out of the department
of telecommunications (DOT) to handle the sectors of Mumbai and Delhi
respectively. A high-powered telecom commission was set up in1989 and Videsh
Sanchar Nigam Ltd. (VSNL) was made the international service provider catering to
all telecom services originating from India.

The second phase of reforms in the telecom sector Commenced in 1991 with the
announcement of the new economic policy.

To Begin with, the manufacturing of telecom equipment was delicensed in 1991, while
radio paging services were opened up in the 1992. In 1994, the basic telephony sector
was opened up by providing licenses to six companies to operate in the basic areas.

These companies were: Bharti Telnets, Essar Commissions, Shayam telecom, Hughes
Telecom, Tata Teleservices and reliance Telecom.

The National Telecom Policy in 1994 emphasized on Universal Services and Qualitative
Improvement in telecom services. While an independent statutory regulatory was
established in 1997, the Internet services were opened up in 1998. Since then, more

companies have been given the go-ahead to basic telephony, such as Reliance, Tata’s,
HFCL, Bharati, Aircel, Digilink and Birla AT&T.

The third phase of reforms in the telecom sector began in the late 1990s, with the
announcement of the New Telecom Policy in 1999. The underlying theme of the reform
process of NTP was to usher in full competition through unrestricted entry of private
players in all service sectors. The policy favored the migration of existing operators from
the era of fixed license fee regime to that of revenue sharing. The duopoly rights of the
MTNL and VSNL (VSNLs monopoly ended in April 2002 when the sector was thrown
open to the private sector) were discontinued to herald the era of unlimited competition
in the industry.


Range of services and Areas of Operations:

Telecommunications is now universally recognized as one of the prime movers of the
modern economy. According to a world Bank study, a 1% increases in tele density,
leads to a 3% increase in GDP, lending support to the fact the availability of adequate
telecom infrastructure leads to an acceleration of economic development.
India has the lowest mobile penetration at around 0.3%. In terms of fixed line
penetration, Hong Kong and Taiwan lead with 57%, while India and Indonesia lag with
around 3.4% penetration. India has more than double the number of television
households compared to telephones.
It is necessary to change this and unleash a communications revolution that will
transform India socially and economically. Reliance Communication was launched in the
year 2000 with the above in mind.

 Only private sector Company to have all services, all India strategy.
 Fixed line services in 18 telecom circles.
 Cellular services in 13 state covering 380 million people.
 Long distance services in 229 of the country's 323 Long Distance Charging Areas

National Backbone
Created a 60,000km, pan India optical fiber transmission network, which is "Best in
 This G-655, 48-fiber cable network will carry terabits of voice, data and video
 Connected to this network are our International Gateways for world connectivity
using submarine cables and satellite bandwidth.

In December 2002, Reliance Communication ushered a digital revolution in India. The
company's catch line 'A New Way of Life' reflects the dream of Reliance Founder
chairman Dhirubhai Ambani to place the power of information and communication in the
hands of common people at an affordable cost.

Reliance Communication has created an overarching digital infrastructure using state of

the art technology on the strength of a 60,000km terabit capacity optic fiber network
linking more than 600 cities and towns in India. The goal Of Reliance Communication is
to progressively expand its optic fiber network and eventually cover 116,000 km, with
the ability to Seamlessly connect every individuals, home, and office in all 640,000
villages and 2,500 towns and cities of India. Further, Reliance India Mobile has
captured nearly 60 percent of the incremental post paid market or 25 percent of the
total postpaid segment, all in a matter of just ten weeks. Reliance Industries is the
lead investor in Reliance Communication.


Critical Incident Score

The basis of this method is the principle that there are certain significant acts in each
employee’s behavior and performance, which makes all the difference between success
and failure on the job.

The supervisor keeps a written record of the events (either good or bad). Feedback
is provided about the incidents during the performance review session. Various
behaviors are recorded under such categories as the type of job, requirement for
employees, judgment, learning ability, Several research studies are undertaken and
accomplished year after year but in most cases very little attention is paid to this
important dimension relating to research.

Research design is a model of master plan for gathering formal information. It calls for
certain specification of methods and procedures for obtaining the required information.

Marketing Research Project is defined as either EXPLORATORY RESEARCH or

DESCRIPTIVE RESEARCH depending upon the objectives of the study.
The object of the Exploratory is to seek new ideas and to discover new relationship
between different set of factors in a way that will permit statement of specific hypothesis.
To find out this hypothesis, study of secondary sources of information, survey of
knowledgeable person or case studies are conducted.
Descriptive research describes situation and provides information, which helps in
decision-making. Such research requires a formal design, which helps the researcher to
identify cause and affect relationship. This can be done by case statistical study and
experimentation. The present research is a descriptive research, as it wants to find out
effectiveness of present performance Management system system. The information has
been gathered from survey of sample people selection from the company.

At last the research design is the conceptual structure within which research is
conducted. In brief we can say the research problem. Research design is related to
purpose or objective of research problem and also finds the nature of the problem to be

Data collection is an integral part of the marketing research. There are several ways of
collecting the appropriate data, which differ considerably in context of money costs, time
and other resources at the disposal of the researcher. The researcher should keep in
mind two types of data viz. Primary and Secondary.

The primary data are those, which are collected afresh and for the first time, and thus
happen to be original in character. Primary data can be collected by various methods,
i.e. by observation, telephonic interviews, through scheduled or self-administered

The secondary data are those, which have already been collected by some one else
like various journals and publications of the company and that are used for quick
compilation of the report. Thus they are second hand in nature.

The data for this research project has been collected through self-administered.







Human Resource planning is the process of determining the number and kind of human
resources required in an organization for a specific time period in future.


Analysis Organizational Plans

 Objectives and strategies
 Market Forecasts & budgets
 Financial Plans
 Production Targets
Demand forecasting
 Number of people required
 Skill Requirements
 Job categories
3. Supply Forecast
 Number of people employed
 Addition due to transfers and promotions
 External supply
4. Estimating Manpower gaps
 Surplus
 Shortages
5. Manpower Plan
 Recruitment & Selection
 Training and Development
 Redeployment/retrenchment
 Redundancy
 Retention/Internal mobility
 Productivity
6. Monitoring and control


1. Recruitment Plan
• Number and type of person required
• Time period when required
• Possible resources of recruitment
• Selection techniques to be used
2. Redeployment Plan
• Transferring to other units
• Retraining for new jobs
3. Redundancy Plan
• Number and names of redundant
• Departments/units where redundancy exists
• Time of redundancy
• Retrenchment and layoff
4. Promotion Plan
• Ratio of promotion to external recruits
• Basis of promotion
• Reservation, if any, in promotion
5. Transfer Plan
• Transfer policy and rules
• Channels of transfer
6. Training and Development plan
• Number of people to be trained
• Training period
• Methods of training
• New courses to be developed and changes to be made in existing courses
7. Productivity Plan
• Work specialization

• Job redesign
• Training and refresher training
• Productive bargaining

8. Retention Plan
• Improving compensation levels
• Providing opportunities for career development
• Changes in work requirements
• Opportunity for participation

Recruitment is the process of searching for prospective employees and stimulating and
encouraging them to apply for job in an organization.


1. Recruitment process generally begins when the personnel department receives

requisition for recruitment from any
department. The personnel requisitions contain details about the position to be
filled, number of person to be recruited, the duties to be performed, qualification
required, terms and conditions of employment etc.
2. Locating and developing the sources of required number and type of employees.
3. Identifying the prospective employees with required characteristics.
4. Communicating the information about the organization, the job and the terms and
conditions of service.
5. Encouraging the identified candidates to apply for job in the organization.
6. Evaluating the effectiveness of recruitment process.

a) To find and employ the best qualified persons for each job.
b) To offer promising opportunities for life time working careers.
c) To provide facilities and opportunities for personal growth on the job.

Internal Sources External Sources
a) Transfers (a) Press Advertisement
b) Promotions (b) Educational Institution
(c) Employment Exchanges
(d) Recommendations

Recruitment methods or techniques are the means by which an organization establishes
contacts with candidates, provides them necessary information and encourage them to
apply for jobs.
Methods of Recruitment
1. Direct Method
(Educational and Training Institutions)
2. Indirect Method
(Advertisements in newspapers, journals on the radio and televisions)
3. Third Party Method
(Public employment exchanges, management consulting, firms, professional
societies, trade unions, labor contractors)


Selection is the process of choosing the most appropriate person from the available
Selection may be described as a process of “Rejection” because generally more
candidates are turned away than are hired.
The purpose of selection is to pick up the right person for every job.

1. Preliminary interview
Initial screening is done to weed out totally undesirable/ unqualified candidates.
Preliminary interview is a sorting process in which prospective candidates are
given the necessary information about the job and the organization
If the candidate is found suitable, then he is selected for further screening.
2. Application Blank
Application Blank form should provide all the information relevant to selection.
Generally an application form contains the following information:
(a) Identifying Information
(b) Personal Information
(c) Physical characteristics
(d) Family background
(e) Education
(f) Experience
(g) References

3. Selection Test
Psychological tests are used in employee selection. A test is a sample of same
aspect of an individual’s attitude, behavior and performance. Tests are helpful in
better matching of candidate and job. Tests are useful when the number of
applications is large.

3. Employment interview
An Interview is a conversational between two persons. In selection it involves a
personal, observational and face Management system of candidate for
4. Medical Examination
Applications who have crossed above stages are sent for a physical examination
to serve the following purpose:
(a) It determines whether the candidate is physically fit to perform the job.
(b) It identifies candidates who are otherwise suitable but require specific jobs
due to physical handicaps and allergies.
5. Reference Checks
The applicant is asked to mention in his application form the name and
addresses of two or three persons who know him well.
6. Final Approval
In most of the organizations, the HR department carries out selection process.
Employment is offered in the form of an appointment letter mentioning the
post, the rank, the salary, the date by which candidate should join and other
terms & conditions.


Orientation or induction is “the process of receiving and welcoming an employee

when he first joins a company and giving him the basic information he needs to
settle down quickly and happily and start work.”

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

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

It is concerned with the problems of introducing or orienting a new employee to

his work group, supervisor and the organization. It is the beginning of the fusion
process and it helps integration and agreement between the organizational goals
and the personal goals of the new employee.

Induction may also be viewed as the socializing process by which the

organization seeks to make an individual its agents for the achievements of its
objectives and the individuals seeks to make an agency of the organization for
the achievement of his persona goals.


• To promote the feeling of belongingness and loyalty, and confidence

among the new employees.
• To give the new information he needs such as rules and regulations,
cafeteria and other facilities, time to break off, etc.
• To foster a close relationship between new workers, old workers and


These exists no model procedure. Each industry develops its own procedure as
per its need. The procedure should basically follow these steps:-

(a) The new person needs time and a place to report to work.
(b) It is very important that the supervisor or the immediate boss meet and
welcome the employee to the organization.
(c) Administration work should be completed. Items as vacations, probationary
period, medical absences, suggestion systems, should be covered.
(d) The department orientation can be conducted which include acquainted talk,
introduction to the department, explanation to the function department, and
(e) Verbal explanations are supplemented by a wide variety of printed material,
employee handbooks; flyers employee manuals house journals, picture

Orientation is generally provided on the following: -

• Company policies, practices, objectives and regulations.
• The company, its history, products, process of production and major
operations involved in his job.
• Structure of organization- the geography of plant and functions of various
• Grievance procedure and disciple handling.
• Opportunities, promotions, transfers, suggestion schemes and job


A 2-day induction programme (INEP) is offered to all new employees. This program
provides information on the history of the company (Reliance Group), the fundamentals
of telecomm business and introduces technologies and key concepts of the business.

The program shares the company’s strategic objectives, organization structure and
processes and systems.

Presentations are made from representatives from various business units and functions.


Business Finalization of Manpower Requisition Requisition PlanningManpower PlanForm to Be

Filled In Form to be By Dept. Head Forwarded to HR Dept.Manpower Sourcing

Placement Web Based Print Referrals Internal

consultants Job Sites Media sourcing

Initial Screening of Applications n Rejected

Aptitude Test

Preliminary Interview Short Listed

Psychomotor Test Rejected

Short-listed Rejected

Final Interview

Offer Letter Issued Candidate Selected Rejected

1. Business Planning
The process by which management determines how an organization should
move from its current position to its desired position?

To ensure that the “right person” is hired for the “right job” at “right times” so
that there should maximum long-range benefits.

Analyzing Organization Plans:
The objectives and strategic plans of the company analyzed. Plans concerning
technology, production, marketing, finance, expansion and diversification give an
idea about the volume of future work activity.
A company’s plans are based on economic forecast, company’s sale and
expansion forecast.
Forecasting Demand:
(1) Assess factors affecting the demand e.g. growth plan, expansion plan
(2) Assess the skills/ competencies required in each area
The plan will be prepared annually by the HR unit along with respective
department heads with final approval of the unit head and the president mobility.
Supply Forecasting
Assess factors affecting the manpower supply both externally and internally.
-External Factors- HR practices, business competition, macro
environment, technology
-Internal Factors- HR policies, employee development, salary levels,
company image, interpersonal relations, job challenges
Estimating Manpower Gap
Manpower gap can be identified by comparing demand forecasts and supply
-Deficit suggests the no of person to be recruited from outside.
-Surplus us- Redundant to be redeployed or terminated.
Action Plan/ Manpower Plans
Plans are prepared to bridge the manpower gaps

-Plans to meet the surplus manpower- redeployment plan by transferring
to other units or retraining from new jobs.
-Deficit can be met through by recruiting no and type of person required,
selection techniques to select the employee can be used
1. Monitoring & control
This phase involves allocation and utilization of human resources over time.
Review of manpower plan and programmes help to reveal deficiencies Manpower
inventory should be updated periodically.
2. Finalization of Manpower Plans
The manpower plan is finalized by keeping the following points in the mind:
-Demand variables
-Supply variables
-Market position of the job
-Alternatives (Channels)
3. Manpower Requisition Form to be filled in by Head of the Department
Manpower Requisition Form contains the following:-
-No of vacancies
-Level/ Grade
-Place of Posting
-Nature of Requirement (Permanent/ Temporary)
-Age Limit
-Educational Qualification
-Experience range
-Job responsibilities
-Supervised by/ supervises whom
4. Requisition Form forwarded to HR Department
The above detail of manpower requisition filed by head of the department is then
forwarded to HR Department.
5. Manpower Sourcing
HR Department identify the source of recruitment (both internally and externally)
(a) Internally Source-

Whenever a vacancy access, it is filled through transfers or promotions.
The organization personnel files should provide useful information as to
which employees might be considered for the positions opening within the
(b) External Source-
I. Employment Agencies
There are 2 forms of employment agencies
• State or Public Agencies- Help the job seekers find
suitable employment and employers to find suitable workers
• Management Consultants - these types of agencies
are specialized in middle level and top-level executive
II. Print Media
When an organization desires to communicate to the public that it
has a vacancy, advertisements are one of the most popular

III. Web Based Job Sites

- Recommended Level: Junior to Middle Management
- Types of Position
• All kinds of positions can be advertised but
positions which are genetic in nature i.e. I.T.,
Sales, Finance.
• Lower level positions are easier to fill through Job
List of web based Job Sites
1. Naukri.com
2. Jobstreet.com
3. Jobsahead.com
IV. Campus Visits
The objective is to induce fresh and young blood in the organization
and groom them for future senior positions by retaining them. This
Young and fresh blood is taped from various educational institutions

(i.e. IIMS, IIT’s, Engineering Colleges, it is, Universities) are good
source for recruiting well-qualified executives, engineers, etc.
Responsibility for recruitment centrally lies with HR Corporate. Business will inform then
requirement, to corporate every year for centralized action.

V. Recommendations/Referrals
• In some organization there are formal agreements to give
priority in recruitment to the candidates recommended by Trade
• Relatives & Friends of employees are given priority in
recruitment in some companies.
Each recommended/-referred candidate goes through recruitment and selection


It is the process of choosing the most suitable person out of the entire applicant.
Matching qualification with the job requirement. Selection divides applicants into two

(a) Suitable (b) Unsuitable

“Hire right the first time”.
Before selection following key points should be kept in mind –
(1) Recruit with today’s and tomorrow’s skills in mind
(2) Interview for “selection” not for “rejection”
(3) Hire talent that can be grown

Scrutiny of applications
Each and every applications are checked or screened
Certain guidelines for screening are: -
I. Look objectively for experience and job fitment job satisfaction
II. Checks for gaps in employment
III. Pre degree (college/school/past employers)
IV. Roles and responsibilities
V. Achievements in assignments
Aptitude test
Aptitude test measures the ability or potential of a candidate to learn a new job skill. This
test mainly focuses on a particular type of talent such as reasoning, learning,
mechanical bent of mind. Aptitude test is also known as personality test.

Preliminary Interview
Initial screening as done to weed out totally undesirable / unqualified candidates is given
the necessary information about the nature of the job and the organization.

Pre Interview Interview Post Interview
- Schedule sufficient time - Do’s/ Don’ts -Complete the interview gap
between candidates. assessment sheet.
Do not schedule more than -Communicate the
5-6 interviews in a day. to the candidates within
the stipulated time frame
People from same organization
should not be called on the
same day

- Only experts will conduct interviews. Unit HR either as an internal exercise or in
partnership with external resources. All HODs and recruitment Managers should
be trained.
- At least two members will interview a candidate. At least one of the interviewers
should be from the same function.
- A few Do’s and Don’ts for the interviews are: -

 Plan the interview using the  Start unprepared.
competencies manual.  Jump to conclusion on
 Establish easy and informal inadequate evidence.
environment.  Talk too much.
 Ask open-ended questions.  Pay too much attention to
 Encourage candidates to talk. isolated strengths and

 Analyze career interests. Weaknesses.
 Question gaps in employment.  Entertain phone calls or
other visitors.
 Reject/ select based on a
short interaction.

Application Blank (form)
The application form should provide all relevant information i.e.:
 Identifying information- Name, Address, and Telephone no.
 Personal Information- Age, Sex, Place of birth, marital status
 Physical Characteristics- Height, Weight, Eyesight.
 Family background
 Education- Academic, Technical & professional.
 Experience- Jobs held, Employers, Duties performed, Training, Assignments
 References

Objectives of Application Form:

1. Scrutiny of the form helps to weed out candidates who are lacking in
education, experience or some other eligibility traits.
2. It helps in formulating questions to be in interview.
3. Data contained in the form can be stored for future reference.
Psycho- Motor test or Skill test
These test are primarily used for selecting workers who have to perform semi skilled
and respective jobs.
Reference Checks
The applicant is asked to mention in his application form the names and address of two
or more persons who know him well.
Some of the broad suggestions are-
• At least two references should be obtained for each candidate.

• The references should have known the candidate well professionally.
• There should be a standardized format for reference checks.
• In case, candidate is hired through consultants/ search partners, then the
reference checks would lie on them.

Physical Examination
All candidates who have been giving job offers and who have accepted the same will be
required to undergo a health checkup.
• It determines whether the candidate is physically fit to perform the job.
• The company ties up with a reputed hospital/clinic.
• Some of the suggested tests are: -
- Blood test
- Complete Haemogram
- Blood Sugar (Fasting & PP)
- Eye Examination
- X-Ray Chest PA
• The cost towards the check up will bear by the company.
Final Approval
The executives of the concerned dept/ unit finally approve the candidate short-listed by
the department/unit.
Employment is offered in the form of an appointment letter mentioning the post. The
rank, the salary grade, the date by which the candidate should join the other terms and


(After the final approval Job Offer is given)

1- Job offer should be made Face to Face and not over the phone.
2- Details of the candidate’s compensation and expectation should be taken well
in advance to some time.
3- Details of the offer should be kept ready before the candidate arrives.
4- Do not make commitments, which you cannot keep.
5- The following documents/ information should be provided to the prospective
employee along with the job offer.
 Company Brochure
 Latest Newsletter/ Magazine
 Working hours/ Dress code
6. The offer letter should be handed over to the prospective employee in
an envelope.



Performance Management system is the systematic evaluation of individual with

respects to his/ her performance on the job and his potential for development. The
performance being measured against such factors as job knowledge, quality and
quantity of output, initiative, leadership abilities, supervision, dependability co-operation,
judgment, versatility, health and the like. Assessment should not be confined to past
performance alone. Potential of the employee for future performance must also be

A Performance Management system “is a formal structured system of measuring

and evaluating an employee’s job, related behavior and outcomes to discover
how and why the employee is presently performing on the job and how the
employee can perform more effectively in the future so that the employee,
organization and society all benefits.”


Performance Management system is considered to be most significant and

indispensable tool for an organization for the information it provides is highly useful in
making decision:
1. Regarding various personal aspects such as promotions, salary increase,
transfers, demotion and termination.
2. They are means of telling a subordinate hoe he is doing, suggesting needed
changes in his behavior, attitudes, skills or job knowledge.
3. The superior uses them as a base for coaching and counseling the individual.


• To help each employee to understand more and more about his role and become
clear about his functions.
• To help each employee to understand his own strengths and weaknesses with
respect to his role and functions in the company.
• To identify the developmental needs of each employee with respect his role and
• To increase mutually between each employee and his supervising officer so that
every employee feels happy to work with his supervisor and thereby contributes
his maximum to the organization.
• To increase communication between the employee and his supervising officer so
that each employee gets to know the expectations of his boss from him and each
boss also gets to know the difficulties of his subordinates and attempts to solve
them and thus they together accomplish the tasks.
• To provide an opportunity for the employee for self-reflection and individual goal
setting so that individually planned and monitored development takes place.
• To help every employee internalize the culture norms and values of the
organization so that an organizational identity and commitment is developed
through out the organizations.
• To prepare employee for performing higher-level jobs by continuously reinforcing
the development of behaviors and qualities registered for higher-level position in
the organization.
• To create positive and healthy climate in the organization that drives people to
give their best and enjoy doing so.
• In addition to assist in a variety of personal decisions by generating data about
each employee periodically.


In order to achieve these objectives the Management system format should have the
following components: -


Every job has a set of functions to be performed by its holder. In manual jobs
generally these are clear and specific. As one goes up in the organizational
hierarchy for supervisors and managerial jobs, the activities and functions
become complex and many keep on changing priority from time to time. In view
of these changing priorities and complexity it is necessary to identify, review,
recapitulate and reflect upon the key functions, periodically.
In addition to identification of KPAS, it is useful to set targets for the period of
Management system. These targets should deal with the tasks expected to be
accomplished by appraise under each KPA during the period that will be review
able later. Such target setting helps the Management system to be clear of the
expectations and also provides an opportunity for him to ask for the assistance
required from his boss in order to accomplish whatever was set for him. The
target setting should be done through a process of mutual consultations and


Another important aspect of employee performance is the extent to which each
employee exhibits the qualities desired for the employees of that organization.
These qualities may be managerial qualities or behavior constellation. These
qualities are also the one that are required for performing functions associated
with the higher level jobs in the company.

At the end of the year of the Management system period, the Management
system process should begin with self-Management system by every employee.
To appraise one’s own self on KPAS targets and qualities appraise would go

through a process of reflection and review. Self-assessment may help people to
discover their developmental needs and plan for development that also helps the


Performance analysis is an important component of Management system. Any
ratings to appraise should be given only after analysis of the performance.

Performance analysis should lead to the following: -

I. Identification of factors that have helped appraise to reach the level of
performance he achieved in relation to various KPA targets and various
other functions associated with his job. These may be called facilitating
II. Identification of factors that have prevented the Management system from
doing better or those that hindered his performance. These may be called
as hindering factors.
III. Identification of factors (from those above) about which appraise can do
something which the reviewing officer or somebody else in the
organization can do something and those for which not much can be done.
Such identification would suggest action plans for appraise as well as for
the Management system.
IV. Identifying development needs for better performance on critical functions
associated with the present role.


For doing performance analysis is following steps should be followed: -

1. After discussions on KPAS objectives and other dimensions with the reporting
officer, appraise should periodically keep reflecting about how well he is
progressing in his work and in relation to KPAS.
2. During the performance period whenever the employee comes across
success experiences or feels helped in his performance he should be on the
factors that are helping him do well and how these are facilitating his
3. Similarly, whenever he experiences failure or runs in to difficulties or feels
prevented from doing better he should note the factors that are causing this.
4. At the end of the performance period, appraise consider his own performance
on each of the KPAS and other dimensions.
5. After assigning himself such rating, he should now start listing down all the
factors in detail that have prevented him from doing better or that have
become constraints on his better performances.
6. After listing down the facilitating and hindering factors exhaustively appraise
should then classify these factors into following categories.


a. Personal or Individual facilitating Factors: All those factors that are

attributable to the performance, his abilities effort etc. (e.g. – Job Knowledge, Hard
Work, etc.)
b. Facilitating Factors Attributable to the Reporting Officer: All those actors that
is attributable to the reporting officer (e.g. – Fast Decision Making, Guidance,
c. Facilitating Factors Attributable to the Organization and its System: all
those factors, which are part of the organization, its structure policies,
procedures etc. (e.g. Good working Conditions, Flexible Policies, Open Climate,

d. Facilitating Factors attributable to the Subordinates: Those factors
attributable to the approvee’s own subordinates (e.g.- hard work, cooperation,
e. Facilitating Factors attributable to external environment: These are
attributable to the larger socio- economic-politico and other condition of the
environment external to the organization (e.g. – liberalization of some policies by
government, poor image of competitors, etc.)


a. Inhibiting Factors attributable to the Individual: e.g. – Poor memory, family

Problems, Languages, etc.
b. Inhibiting Factors attributable to the Reporting Officer: e.g. – Delays in
decision-making, Lack of Guidance and direction, Busy Boss, etc.
c. Inhibiting Factors attributable to Subordinate: e.g. – Lack of cooperation,
absenteeism, Union Problem, etc.
d. Inhibiting Factors attributable to the Environment: e.g. sudden change in the
economic, social or political climate, strikes, etc.
e. Inhibiting Factors attributable to the Organization and its System: e.g. -
Policies like that of unplanned transfers, changes in top management etc.

After performance analysis is done, appraise should reflect about his own
performance and prepare notes of his assessments. He should then fix a time for
review discussion. The purpose of review discussions for the appraised is to
know more about the perception, expectations and assessment of his boss and
also to communicate his difficulties of his boss and also to communicate his
difficulties and ask for support if needed.


The performance analysis and review discussion would generally lead to the
identification of developmental needs. Targets not accomplished or KPAS poorly

performed may be indicators of inadequate understanding or lack of capabilities.
If poor performance is due to lack of motivation, it should be dealt during the
counseling session. Alternatively remedial actions action like transfer to other
jobs, issuing working letters, etc. may be done in special cases. Developmental
needs flow directly from the assessment of performances.

The appraiser should give the final assessment after completing all the steps
mentioned above. By this stage he would have thorough understanding of his
subordinates his strengths and weaknesses, developmental needs, etc. and thus
in a position to assess him on a rating scale. It is these ratings that should be
used to reward high performances.


There are basically four sources of collecting performance data regarding an

employee. These sources are as follows: -
• Immediate Superior
• Subordinates
• Peers
• Self Management system


Traditional Method Modern Method

1. Straight Ranking 1. MBO
2. Grading 2. Assessment Center
3. Graphic or linear scale 3. Behaviorally
4. Checklist Anchored rating scale
5. Forced Distribution (BARS)
6. Free Essay
7. Critical Incident Method
8. Group Management system method

9. Field review Method

1. Straight Ranking Method:
It is the oldest and simplest method of performance Management system, by which
man and his performance is considered as entity by the rater. This is the simplest
method of separating the most

efficient from the least efficient; relatively easy to develop and use. But the
greatest limitation of this method is that in practice it is very difficult to compare
single individual with human beings having varying behavior traits secondly, this
method only tells how a man stands in relation to the other in a group
but does not indicate how much better or worse others.
If 5 persons A, B, C, D, E is to be ranked the ranking may be as follows: -

Employee Rank
A 2
B 1
C 5
D 4
E 3

2. Grading Methods:
Under this system, the rater considers certain features and marks them according
to a scale. These selected features may be analytical ability, cooperatives, self-
expression, job knowledge, judgment, leadership and organizing ability. They may
The rater allots the grade, which describes his best performance.

3. Graphic or Linear scale:

Under this method employees’ traits are evaluated on a continuous scale or multiple
type scale. Under these qualities such as initiative, leadership, co-operative ness,
dependability, industry, attitude, loyalty are evaluated. Employee’s contribution such
as quality and quantity of work, the responsibility assumed, and specific goals

achieved, regularity of attendance, attitude towards superiors and associates etc. are
also evaluated.

4. Forced Distribution Method

This method eliminates or minimizes ratters’ bias, so that all personnel may not be
placed at the higher end or at lower end of the scale. It requires the rater to appraise
an employee according to a predetermined distribution scale. For this purpose, a
five-point performance scale is used without any descriptive statement mainly for
JOB PERFORMANCE and PROMOTIABILITY. Employee are placed the two
extremes of ‘GOOD’ or ‘BAD’ job performances.

For Example: -
10% are placed at the top end of the scale, given outstanding rating.
20% are given above average rating.
40% are given satisfactory rating.
20% are given fair.
10% are given unsatisfactory.

5. Checklist:
Under this method the rater does not evaluate employees’ performance, he supplies
reports about it and personnel department does the final rating. A series of question
are presented concerning an employee about his behavior.

Checklist Method

1. Simple Checklist
2. forced Choice Block
3. Weighted Checklist

For e.g.

Simple Checklist

(1) Is the employee really interested in his job? YES/NO

(2) Is he respected by his subordinates? YES/NO
(3) Is he always willing to help other? YES/NO
(4) Does he follow instructions properly? YES/NO
(5) Does he give recognition and praise to
employee for work well done? YES/NO

This method suffers from bias on the part of rater. A separate checklist is developed for
different class of jobs. This process can be expensive and time consuming.

Forced Choice Block
Most Least
1. Regularity on the job
(a) Always regular 
(b) Informs in advance for 
(c) Never Regular 
(d) Remain absent without prior 
(e) Neither regular nor irregular

Weighted Checklist
(Weights are assigned to different statements to indicate their relative importance)

Traits Weights Performance
(Scale 1 to 5)
1. Attendance 0.5
2. Knowledge of the Job 1.0
3. Quantity of the Work 1.0
4. Quality of the work 1.5
5. Dependability 1.5
6. Interpersonal Relations 2.0
7. Organizational Loyalty 1.5
8. Leadership Potential 1.5

6. Free Essay Method:

Under this method the supervisor makes a free form, open ended Management
system of an employee in his own words and put down his impression about the
employee. He takes note of these factors.
a) Relations with fellow supervisors and personnel assigned to him.
b) General organization and planning ability.
c) Job knowledge and potential.
d) Employees, characteristics and attitude.
e) Understanding and application of company’s policies and procedure.
f) Production, quality and cost control.

7. Critical Incident Method:

In this method, the supervisor keeps a written record of critical (good or bad) events
and how different employees behaved during such events. These events are
known as critical incidents. The rating of an employee depends on his positive and
negative behavior during these events.
For Example:
A fire, a sudden breakdown of machinery, a serious accident, etc. may be identified
as critical incidents for the working for a factory.

Worker Reaction Score

A Informed the supervisor immediately 5

B Became anxious of loss of output 4
C Tried to repair the machine 3
D Complained of poor maintenance 2

E Was happy to get forced rest 1

Critical Incident Score

The Basis of this method is the principle that there are certain significant acts in each
employee's behaviour and performance, which makes all the difference between
success and failure on the job.
The supervisor keeps a written record of the events (either good or bad). Feedback
is provided about the incidents during the performance review session. Various
behaviors are recorded under such categories as the type of job, requirement for
employees, judgment, learning ability, productivity, and precision in work,
responsibility and initiative.
These critical incidents are discovered after through study of the personnel working
on a job. The collected incidents are then ranked in order of frequency and

8. Group Management system Method:

Under this method Management system group rates employee, consisting of
their supervisor and 3 or 4 other supervisors and who have some knowledge of their
performance. The group determines the standard of performance for the job,
measures actual performance of an employee, analyses the cause of poor
performance and offer suggestion for improvement in future.

9. Field Review Method:

In this method, a training officer from the personnel department interviews line
supervisors to evaluate their respective subordinates. The interviewer prepares in
advance the question to be asked. By answering these questions a supervisor gives
his opinions about the level of performance of his subordinate, the subordinates
work progress, his strengths and weakness, promotion potential etc. the detailed
notes of the answers are then placed in the employees personnel service file.
The success of this system depends upon the competence of the interviewer.


Management by Objectives (MBO)

Peter Drucker developed the concept of MBO in 1954. He called it Management by

objectives and self-control. It is also known Work Planning & Review or Goal setting
Approach to Management system.

MBO is potentially a powerful philosophy of managing and effective way for operational
zing the evaluation process. It is a process whereby the superior and subordinates
manager of an organization jointly identify the common goals, define each individual’s
major areas of responsibility in terms of results expected of him and use these
measures as guides for operating the unit and assigning the contribution of each of its

The main objective of MBO is to change behavior and attitude towards getting the job.
In other words it is result oriented it is performance that counts.


1. MBO helps and increases employee motivation because it relates overall

goals to the individual goals.

2. Managers are more likely to compete with themselves than with other
3. MBO results in a “means end chain”. Management at succeeding lower levels
in the organization establishes targets, which are integrated with those at the
next higher levels.
4. MBO reduces role conflict and ambiguity.
5. MBO provides more objective Management system criteria. The targets that
emerge from MBO process provide a sound set of criteria for evaluating the
manager’s performance.

6. MBO identifies performance deficiencies and enable the management and the
employees to set individualized self-improvement goals and thus prove
effective in training and development of people.
7. MBO helps the individual manager to develop personal leadership.


The most important feature of the assessment center is job related simulations. These
simulations involve characteristics that manager feels are important to the job success.
Under this method many evaluators join together to judge employees performance in
several situations with the use of a variety of criteria. Assessments are made to
determine employee potential for the purpose of promotion. The assessment is done
with the help of couple of employees and involves situational exercises such as in
baskets, business game, and role-playing incidents. Evaluators are drawn from
experienced managers with proven ability and they
evaluate all employees individually and collectively and each individual is given one of
the 4 categories more than acceptable, acceptable, less than acceptable, unacceptable.
An assessment center generally measures interpersonal skills, communicating ability,
ability to plan and organize etc. Personal interviews & projected tests are used to
assess work motivation, carrier orientation and dependence on others. Paper and pencil
tests are used to measure intellectual capacity.


This is a new Management system technique, which has recently been developed. The
procedure for bars is usually in 5 stepped-

1. Generate Critical Incidents-

Persons with knowledge of the job to be appraised are asked to describe specific
illustrations (critical incidents) of effective and ineffective performance behavior.

2. Develop Performance Dimensions-

These people then cluster the incidents into a smaller set (usually 5 to 10) of
performance dimension. Each cluster is then defined.

3. Reallocate Incidents-
Any group of people who also know the job then reallocates the original incidents.
They are given cluster definition and critical incidents and asked to redesign each
incident to the dimensions it best describes.

4. Scale of Incidents-
The second group rates each incident on a seven or nine point scale. This second
group is generally asked to rate the behavior described in the incidents as to how
effectively or ineffectively it represents performance in the appropriate dimensions.
Incidents that have standard deviation of 1.5 or less (on a seven point scale) are
included in the final anchored scales.

5. Develop Final Instruments

A set of incidents is used as “behavior anchors” for the performance dimensions.

• Individual are provided with adequate notice of what is expected of them.

• All relevant evidence to proposed violation is aired in a fair hearing so individual
affected can respond.
• Final decision is based on evidence and free from biases.




 It makes it easier to measure performance/success.
 People are more likely to work towards achieving objectives if they are sure what is
expected to them.
 There is an old adage that says " That which is measured gets done" and there is
some truth in that – if people are aware that their performance is being measured,
they are likely to be more effective.
 Objectives help to identify potential training needs.


A system for Managing organizational Performance.

A system for Managing Employee Performance.

A system for Integrating the Management of Organizational and Employee


A system for Integrating Rewards to performance and plan development.


 System to capture

-Responsibilities in brief by Appraise.

-Achievement of goals and rating by Appraise

-Rating of Critical attributes.

-Overall Management system based on KRAS and Critical Attributes.

 Review of Strengths and areas of improvement.

 Identification of Training needs.

 Settings SMART GOALS.


To institutionalize an integrated system to support the organization growth and create a
performance driven culture, encompassing performance planning, monitoring, support
and evaluation with a focus on employee learning and development.

The Performance Management System acts as major integrating factor with the other
HR systems of the organization as follows:

Development Strategies
-Job Rotation/ Enrichment/ enlargement

Recognition & Reward PMS Management Resources

-Individual Recognition Planning
- Inputs to earnings - Inputs to Succession Plans
- Company Resourcing

Career & Selection planning

-Mapping towards competencies required


Planning/ Objective setting
- Understanding & agreeing of role
- Defining performance objectives
- Linkage to company goals
Performance Planning
Annual: 31st March

Rewards/ Recognition Performance Assessment

-Recognition- Monetary/non - Self Review
Monetary - Assess performance
-Compensation (increments, - Against objectives
Incentives, bonus, etc.) -Assess how the individual
Exhibited behaviors in
On going support of performance
Annual Increments: April end factors
(Effective 1st April)` Task/Performance factors Assessment
Annual: 1-15 April
Mid year Review
1-15 Oct
Quarterly Review
1-15 Jul
1-15 Jan

Performance Development
Development Planning
- Competency Development
- Regular Counseling and feedback
- Mentoring
- Coaching
- Training
- 360-degree feedback
Development Planning –1-15 June
Development Plan Roll – Out: July- June


In order to goals to be an objective means of evaluating performance they should follow
these S-M-A-R-T guidelines:
• Specific: - Result oriented and not merely descriptive. Avoid generalities. Deal with
the most important aspects of the job.

• Measurable: - Concrete and measurable, Or at least observable. Quantify as much

as possible in terms of:
- Time units
- Frequency rates
- Production units
- Volume amounts

• Achievable: - within the individual's authority, ability and skill level.

• Realistic: - Consistent with available resources, market conditions, and business


• Time: - Frame- Clearly set time limits for completion.




One of the steps in designing an Management system programme is to determine the
evaluation criteria. It is obvious that the criteria should be related to the job. The six
criteria for assessing performance are:
1. Quality - The degree to which the process or result of carrying out an activity
approaches perfection in terms of either conforming to some ideal way of
performing the activity, or fulfilling the activity's intended purpose.
2. Quantity - The amount produced, expressed in monetary terms, number units,
or number of completed activity cycles.
3. Timeliness - The degree to which an activity is completed or a result produced,
at the earliest time desirable from the stand points of both coordinating with the
outputs of others and of maximizing the time available for other activities.
4. Cost Effectiveness - The degree to which the use of organization's
resources (e.g. human monetary. technological and material) is maximized in the
sense of getting the highest gain or reduction in loss from each unit or instance of
use of a resource.
5. Need of Supervision - The degree to which a job performer can carry out a
job function without either having to request supervisory assistance or requiring
supervisory intervention to prevent an adverse outcome.


Where superiors, peers, subordinates and clients make Management system, it is called
the 360-degree system of Management system. First developed at General Eclectic, US
in 1992, the system has become popular in our country too. GB (India), Reliance
Industries, Crompton Greaves, Godrej Sodas, Wipro, Infosys, Thermax and Thomas
Cook are using the method with greater benefits. The Arthur Anderson Survey (1997)
reveals that the 20% of the organization use the 360-degree method. In the 360 degree
method, besides assessing performance, other attributes of the assesses – talents,
behavioral quirks, values, ethical standards, tempers, and loyalty are evaluated by
people who are best placed to do it.



These reports are recorded for the newly joining staff members. The period for this
report is 3 months from the date of joining. This report is aimed to judge the suitability of
This report is recorded for the staff members who have completed six months of service
or as decided by the management. This report is aimed to judge the continuity of the
employees in the company's employment.


These categories of Management system reports are directly sent to reporting officer of the
employee and are recorded by the reporting and reviewing officer recommending confirmation or
extension in confirmation or recommending necessary actions.



Quite often questionnaire is considered as the heart of survey operation for this
research project a survey questionnaire has: been prepared and in this type of
questionnaire the questions are presented with exactly the same wording and in the
same order to all respondents. Structured questionnaire may also have fixed alternative
question in which responses of the informants are limited to the stated alternatives.

Choices like ‘don’t know’, ‘can’ not say which help the respondent to skip questionnaire
have been avoided as it is technically inefficient due to time limitation and other
constraints direct personal interview method was used, to gather the point information
and for easy tabulation and compilation of data

The questionnaire consists of 11 questions in all, with a combination of both open-ended

and close- ended question. The questionnaire was designed to know the effectiveness
of the Management system system present in the organization. It helps us to know
much the employees were aware of concerning their performance.

The questionnaire started with the name of name of the employee and his date of

Q.1: Are you working part time or full time?

This question was asked to know that how many employees are working on part
time basis and how many employees are working as full time employees. The

part time employees have a duty of only 4 hours a day, whereas the full time
employees work 8 hours a day. Part time employees may not be aware of the
company's performance Management system system.

Ans.: FULL TIME: 40






According to the sample chosen, the answer to this question showed that approximately
80% of the employees are full time employees and 20% are part time and they may not
be aware of company's Management system system.

Q.2: How many times is your performance judged every year?

This question was asked to know that whether the employees are aware of
performance Management system and if they had any idea as to how many times
are they appraised in a year.
Ans.: NONE: 1
MANY: 26
Answer to this question showed that out of a sample of 50 employees, 26 said that the
Management system took place many times in a year and only one of the employees
was not aware of the Management system system at all.

Q.3: Are you satisfied with present Management system system?

The question aimed to find out if the employees were satisfied at the present
Management system system at the company, and if not why was it so.
Ans.: YES: 43
NO: 7





The answer to this question showed that 86% of the employees were quite satisfied with
the Management system system. The reason why they remaining 14% were not
satisfied was not disclosed. These employees might be those who had recently joined
the organization and were not aware of the Management system system.

Q.4: what changes do you want it this regard?

This question was related to the previous question. This was specially designed
for those who were not satisfied by the Management system system present at
the company.
Ans.: The employees stated that the management should be more cooperative. They
should not penalize those who are not able to put in their maximum efforts
sometimes due to certain reasons.

Q.5 Who judges your performance in the work place, immediate superior or top
This question was designed to know that whether the employees thought that the
immediate superior, who knew them well, or the top management judged their
performance, with which they have little contact.
Ans.: Immediate Superior: 2
Top Management: 27


54% TOP

For this question 46% employees said that their immediate superior judged their
performance. The rest of the employees said that their performance judgment rested in
the hands of the top management.

Q.6: Do you think your Management system form reaches the top management
in case of their judgment?
This question was designed to find out whether the employees were aware of the
fact that their Management system form ultimately went to the top management.

Ans.: YES: 35
NO: 15





For this question 70% of the employees believed that the top management ultimately did
their Management system. However 30% of the employees thought that the
Management system never reaches the top management.

Q.7: Do you get proper feedback of your work from your superiors?
This question was put in to find out if the employees were aware of their
performance as appraised by the superiors and if they were communicated of
their good as well as their weak points.

Ans.: YES: 33
NO: 17





According to the answers obtained, 66% felt that they were fully communicated of their
performance whereas 34% felt that they were not made aware of the results of their

Q.8: Do you think '360 degree' feedback will help you improve?
This question was asked to know to know whether the employees were of the
'360 degree' Management system system or not and do think it will help them.

Ans.: YES: 44
NO: 6






For this question 88% employees were of the Management system system and they felt
it would help them improve further. Only 12% employees gave a negative answer for
this question.

Q.9: Do you have any reverse effect in case of negative feedback of your
This question was framed to know whether the negative feedback of the
performance was a motivational factor for the employees or not.

Ans.: YES: 11
NO: 39





As an answer to this question 22% of the employees stated that the negative feedback
had a reverse effect on them. 78% of the employees had a positive attitude and said
that it was a motivational factor for them.

Q.10: Does the company provide 'in service' training facilities?
This question was designed to know whether the organization provides training to
the employees after performance Management system or not.
Ans.: YES: 48
NO: 2





For this question 96% employees agreed that the organization provided training as and
when required after performance Management system. Only 4% employees thought that
proper training on the job was not made available.

Q.11: What were the actions or factors that inhibited my performance?

Ans.: Non Punctuality: 50%
Laziness: 30%
Carelessness: 20%


20% NON


Q.12: The new skill add this employee has developed & demonstrated are
Ans.: Communication Skills: 50%
Interaction Skills: 20%
Computer Literacy: 30%




40% WORK

Q.1.3: I can facilitate this employee’s contribution to the achievement of our

Goals by

Honesty: 20%
Punctuality: 40%
Sincerity for Work: 40%






By observing above analysis, it was concluded that the management should be more
cooperative and should apply a fair & just system. In this study it was found that the Top
management appraises the performance of their employees. Most of the employees felt
that they were properly communicated about their performance & had a positive attitude
for receiving negative feedback. Most of the employees felt that their performance has
helped to achieve the organizational goals. It was found that non-punctuality, laziness
and carelessness were the inhibiting factors in the performance of most of the
employees. So these inhibiting factors must be overcome to improve their performance.
On the other hand, it was observed that if honesty, punctuality & sincerity for work is
adopted in one’s behavior, performance can be enhanced to a large extent which will
help in personal development of the employees as well as achieving organizational


1- A system of psychological Management system can be introduced where psychologists

are used to specifically assess an individual's future potential. The Management system
normally consists of in depth interviews, psychological tests, discussions with
supervisors and a review of other evaluations. The psychologist then writes and
evaluation of the employee's intellectual, emotional, motivational and other work related
characteristics that suggest individual potential, This will make the potential
Management system more specific and a reliable date source for making employee's
promotion decisions and future development.
2- The counseling sessions are conducted and the reporting officer obtains the signature of
the ratee after the session but a post Management system interview report, handwritten
may be introduced. The report may consist of-

(a) Main points conveyed by the superior.

(b) Reactions of the employees appraised.
(c) Summary of the agreed programme.
(d) Finally the date of post Management system interview and signatures of
both the employee and the reporting officer.

3. A concept of 360-degree Management system can be introduced whereby

an individual will be appraised not only by his seniors but also by his peers subordinates
and customers (in case of marketing department employees). This system will help in
reducing the chances of biased Management system.

360-degree Management system can be introduced in the Management system system

to make it more open and operative. Other terms used to describe Management system
include multi rater system and full circle feedback.

The purpose of 360-degree Management system is usually to provide feedback to
individuals of how their performance is viewed by a number of organizational

There are a number of issues associated with administrating a 360-degree Management

system programme. Firstly behavioral, rather than trait rating scale, should be
employed. Secondly, selection of rates should be managed carefully to avoid e.g. Ratee
nomination only “friendly rates to provide them with feedback. Thirdly, ratings should be
made to encourage honest Management systems. Finally Ratee should be trained to
use the rating form properly to help them make accurate Management systems.
While 360-degree Management system may indicate the future direction of performance
Management system a number of issues need to be addressed.
This include-

I. Ensuring that participation is voluntary unrolling rates is likely to provide accurate or

useful feedback.

II. Deciding whether feedback provider would be identified or remain anonymous.

III. Deciding who should see the feedback and whether the names of those providing
feedback should be shared.

IV. Assessing whether scores should be reported separately or pooled. This will have an
impact on the quality of feedback and on whether the person being appraised is likely to
be included to make change as a result of it.

Good trust levels, clarity about the objectives of the Management system and a
participative team based culture are likely to be all-important for 360-degree
Management system system to be effective.

Implementation of a 360-degree system is a very crucial process. Therefore for its

successful implementation following action plan can be suggested-

• Objectives should be defined very clearly. The 360-degree Management
system system should be positioned as an employee developmental tool. We
can say that the organization should change to the 360-degree feedback
system with a focus on development instead of promotions and increments.
• A survey audit should be done on the culture and values prevalent in the
organization openness, trust, authenticity, autonomy, collaboration, and
• Manager should first get fully aquatinted with the 360-degree feedback
system by gathering the experiences of companies, which have introduced
such a system and then examine some of their own paradigms on authority
and hierarchy.
• Workshops can be organized at various critical levels in the organization with
the help of experts, starting with the top management at which 360 degree
feedback has to be obtained should be covered so that they can fully
understand, appreciate and accept the system. After sometime junior levels
can also be included.
• HR Department should provide interpretation and counseling when managers
get 360 degree feedback for development suitable action plans should be
developed by the managers for Self-improvement and which should be a part
of the key result areas of the future.

4. Team Management system. The individual Management system system can be

into the team Management system i.e. the evaluation of the performance of the team will
be done instead of the performance of the individual.
For the team performance based Management system system whole of the organization
should be divided into various small business units. Under this system the entire
manpower of a unit is considered as a team and the performance measures which can
be identified for each unit are-
• Volume of business growth. This is important because markets of all
products are expanding rapidly, which allows each division to set a higher
growth target.
• Net contribution of the division. This parameter will eliminate the cost of
common overheads over which that unit has no control.

• Net working capital returns. The measure is used to gauge operational
For the support services the parameters for their achievements can be identified as
staying within the budgets, company profits manpower costs, success at meeting
deadlines and internal customer satisfaction. These parameters can be used as the
measures of performance using three benchmarks – levels 1, 2, 3. Level 3 refer to the
minimum acceptable performance – an increase over the previous year is recorded. The
other two represent stretch targets, with level standing for a superlative performance
that surpasses all expectations. Unless a division reaches level 3 there should be
neither a team reward nor an individual one.
Star performers within each team should be given additional rewards too. The
underlying spirit of this system is to create a homogeneous group and yet as per a
competitive environment in which everyone is performance driven, both as an individual
and as a team leader.
5. It has been seen that individuals who are rated as “outstanding” receive a substantially
high amount of increment and a promotion is awarded in recognition to their excellent


The following suggestions can be recommended:


360-degree Management system is a separate system in itself. It sought for
Management system no only by the seniors but also by one’s peers, subordinates and
customers. It can be suggested to use it as a development tool through self-awareness,
thus helping to discover the blind spots. It can also provide more authentic data for

The introduction of his system has the advantage of emphasis on customer

orientation, thus providing total quality. The system may create a culture of
openness and participation; therefore, serves as a team building tool too.

There exist a variety of issues regarding administering a 360-degree

Management system programme:

I. Behavioral rather than trait rating scale should be employed.

II. Selection of rater should be managed carefully to avoid rather nominating only
“Friendly Raters”.

III. Ratee should be well trained to use the rating form, so as to make accurate
Management systems. Honest Management systems should be encouraged.

Implementation of 360-degree Management system system is a crucial process.

Good trust levels, clarity about the objectives of the Management system and a
participative team based culture are its important ingredients. Some of the
following action plan can be suggested for its arrival to successful destination.

A. The system should be projected as a development tool. It should be planned and

managed as a change programme.

B. The system should be communicated across the organization. The well-
defined objectives are a pre requisite for the system to be effective.
C. Organizational support should be provided to aid individual development.
D. Continual organizational monitoring can maximize effectiveness.
E. Conduction of the re- assessments on a periodic basis is also main
consideration to be implemented.
F. Noticing changes and rewarding the same should be done in a systematic
G. The trends related to commonly shared weaknesses should be collected and
training and other organizational actions should be initiated.
H. Proper usation of the potential Management system career planning and
development data should be done.

Thus, in lieu of the above arguments it can be said that this system is a delicate
and sensitive issue that should be handled carefully, lest it can politicize the work
place and can finally damage the whole of the system.


“Counseling is a means and not an end in itself”, this should be well included
in one’s mind. Development does not occur just because there is counseling
could be used as an effective instrument in helping people integrates with their
organization and have a sense of involvement and satisfaction.

There should exist a dialogic relationship in goal setting and performance review.
With such a collaborative effort, counseling effort, counseling can result in more
objective results.

More emphasis should be pondered on;

• General climate of openness and mutuality.
• Empathic attitude of management.
• Sense of uninhibited participation by the subordinates in the performance
review process.

• Focus on work oriented behavior and work related problems.
• Avoidance of discussion of salary and other rewards.


Team spirit should be more emphasized. The individual Management system

system can be converted into the team Management system that is individual
performance should not be preferred rather there should exist a “team
performance evaluation system.”
For this to happen the whole organization can be divided into various small
business units (SBUS). Under it, the entire manpower of a unit is considered as a
team. Performance can be measured along with the pre-divided parameters as
net working capital relines, volume and business growth, net contribution of the
division, etc.


Periodic psychotherapy sessions can be conducted for assessing the employees'

emotional, intellectual motivational and other work related problems if any. This
will help removing their problems and work more efficiently psychotherapy can be
given through interviews, questionnaires, case study method, etc. The work in
itself never ceases at mere assessing task but a proper planned action and
feedback programme are rather most important of all. This psychotherapy
session will also help in including a feeling of consideration of the company
towards its employees.


Date of Joining:

1. Are you working

Part Time Full Time

2. How many times is your performance judged every year?

3. Are you satisfied by the present Management system system?

• If yes, why?
• If no, why?

4. Who judges your performance in the work place?

• Immediate superior
• Top management
5. Do you think your Management system form reaches the top management in case of
their judgment?

6. Do you get proper feedback of your work from your


7. Do you think “360 degree” feedback will help you to improve?

8. Do you have any reverse effect in case of negative feedback of your


9. Does the company provide ‘in service’ training facilities?

10. Do you have good communication with your

-Immediate Superiors
-Top Management


1) Bradwell, Lan & Holder, Human Resource Management, Macmillian India Ltd., New
Delhi, 1996.
2) C.B. Gupta, Human Resource Management, Sultan Chand & Sons, New Delhi, 1997
3) Reinforce.
4) www.ril.com
5) www.businessballs.com
6) www.relianceinfo.com

 Research methodology(c.r. Kothari)
 Human Resources Development - T.N. Chabbra

 Human Resources Development - V.S.P. Rao (Text and Cases)

 Human Resource Management - Ashwathapa, K.