1

ABSTRACT

The Bharat Sanchar Nigam Limited located in GM Office Bibikulam, Madurai. BSNL is Indias oldest and largest communication Service Provider. Currently BSNL has a customer base of 64.8million (basic and mobile telephony). It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL.

Objectives of the study are to find out the satisfaction level of the performance appraisal system, to analyze the level of achievement, to estimate the benefit of the performance appraisal system to the organization and to the individual.

The study is conducted by survey method using structured questionnaire with five point rating scale. Total population study was adopted. Data was analyzed using simple percentage and chi-square test.

The study had been conducted to analyze the effectiveness of performance appraisal system on the managerial employees of the Bharat Sanchar Nigam Limited.

Effective performance appraisal method encourages employees in work and it also helps in improving their individual responsibility which in turn improves profitability of the organization.

1. INTRODUCTION 1.1 RESEARCH BACKGROUND

A performance appraisal is a process of evaluating an employees performance of a job in terms of its requirements. It is a process of estimating or judging the value, excellence, qualities or status of some object, person or thing. Performance appraisal has been considered as a most significant and essential tool for an organization, for the information it provides is highly useful in making decisions regarding various personal aspects such as promotions and merit increases. McGregor says: Formal performance appraisal plans are designed to meet three needs, one of the organization and the other two of the individual, namely: (i) They provide systematic judgments to back up salary increases, transfers, demotions or terminations. (ii) They are means of telling a subordinate how he is performing, and suggesting needed changes in his attitudes, skills or job knowledge. They let him know where he stands with the boss. (iii) They are used as a base for coaching and counseling the individual by the superior. On the basis of merit rating or appraisal procedures of various companies in India, the main objectives of employee performance appraisal are: (i) To enable an organization to maintain an inventory of the number and quality of all managers and to identify and meet their training needs and aspirations; (ii) To determine increments rewards and provide a reliable index for promotions and transfers to positions of greater responsibility; (iii) To maintain individual and group development by informing the employee of his performance standard; (iv) To suggest ways of improving the employees performance when he is not found to be up to the mark during the review period. (v) To identify training and development needs and to evaluate effectiveness of training and development programs.

3 (vi) To plan career development, human resources planning based on potentialities. 1.2 COMPANY PROFILE Overview of BSNL BSNL is Indias oldest and largest communication Service Provider. Currently BSNL has a customer base of 64.8 million (basic and mobile telephony). It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL. As on March 31, 2007 BSNL commanded a customer base of 33.7 million wire line, 3.6 million CDMA-WILL and 27.5 million GSM mobile subscribers. BSNLs earnings for the Financial Year ending March 31, 2006 stood at INR 401.8b (US$9.09 billion) with net profit of INR 89.4b (US$ 2.02 billion). Profile of organization: History: The foundation of Telecom Network in India was laid by the British sometime in 19th century. The history of BSNL is linked with the beginning of Telecom in India. In 19th century and for almost entire 20th century, the Telecom in India was operated as a Government of India wing. Earlier it was part of erstwhile post and Telegraph Department (P&T). In 1975 the Department of Telecom (DoT) was separated from P&T. DoT was responsible for running of Telecom services in entire country until 1985 when Mahanagar Telephone Nigam Limited(MTNL) was carved out of DoT to run the telecom services of Delhi and Mumbai. It is a well known fact that BSNL was carved out of Department of Telecom to provide level playing field to private telecoms. Subsequently in 1990s the telecom sector was opened up by the Government for Private Investment, therefore it became necessary to separate the Governments policy wing from Operations wing. The Government of India corporatized the operations wing of DoT on October 01, 2000 and named it as Bharat Sanchar Nigam Limited (BSNL). BSNL operates as a public sector. Main services being provided by BSNL: BSNL provides almost every telecom service, however following are the main Telecom services being provided by BSNL in India:-

4 UNIVERSAL TELECOM SERVICES: Fixed wire line services and wireless in Local Loop (WLL) using CDMA Technology called bfone and Tarang respectively BSNL is dominant operator in fixed line. As on March 31, 2007(end of financial year) BSNL had 76% share of fixed and WLL phones. BSNL MOBILE- CELL ONE, PRE-PAID-EXCEL CELLULAR MOBILE TELEPHONE SERVICES: BSNL is major provider of Cellular Mobile Telephone Services using GSM platform under brand name Cellone. Pre-paid Cellular Services of BSNL are know as Excel. As on March 31, 2007 BSNL had 17% share of mobile telephony in the country. DATA ONE BROAD BAND INTERNET: BSNL is providing internet as dial-up connection (sancharnet) and ADSL- Broad band Data one. BSNL has around 50% market share in broadband in India. BSNL has planned aggressive rollout in broadband for current financial year. INTELLIGENT NETWORK: BSNL is providing voting, toll free calling, premium calling etc. BSNL present and future: Since its corporation in October 2000, BSNL has been actively providing Connections in both urban and rural areas and the efficiency of the company has drastically improved from the days when one had to wait for years to get a phone connection to now when one can get a connection in even hours. Pre-activated mobile connections are available at many places across India. BSNL has also unveiled very cost effective Broadband internet access plans (Data One) targeted at homes and small businesses. At present BSNL enjoys 47% of market share of ISP services. IN services like Tele-

Year of broadband 2007- BSNL

Former Indian Communications Minister Thiru Dayanidhi Maran had declared year 2007 as Year of Broadband in India and BSNL is gearing up to provide 5 million Broadband connectivity by the end of 2007. BSNL has upgraded existing Dataone (Broadband) connections for a speed of up to 2 Mbit/s without any extra cost. This 2Mbit/s broadband service is being provided by BSNL at a cost of just US$ 5.5 per month. Further, BSNL is planning to upgrade its broadband services to Triple play (Telecommunications) in 2007.

BSNL has been asked to add 108 million customers by 2010 by Former Indian Communications Sector in India, the target appears achievable, however due to intense competition in Indian Telecom sector in recent past BSNLs growth has slowed down.

BSNL is pioneer of Rural Telephony in India. BSNL has recently bagged 80% of US$ 580m (INR 2,500 crores) Rural Telephony project of Government of India.

6 Challenges: During Financial year 2007-2008(From April 01,2006 to March 31, 2007) BSNL has added 9.6 Million new customers in various telephone services taking its customer base to 64.8 Million. BSNLs nearest competitor Bharti Airtel is standing at a customer base of 39 Million. However, despite impressive growth shown by BSNL in recent times, the fixed line customer base of BSNL is declining. In order to woo back its fixed-line customers BSNL has brought down long distance calling rate under One India plan, however, the success of the scheme is not known. However, BSNL faces bleak fiscal 2006-2007 as users flee, which has been accepted by the CMD BSNL. Presently there is an intense competition in Indian Telecom Sector and various Telcos are rolling out attractive schemes and are providing good customer services. However, BSNL being legacy operator and its conversion from a Government Department earns lot of criticism for its poor customer service. Although in recent past there have been tremendous improvement in working of BSNL but still it is much below the Industrys Expectations. A large aging (average age 49 years (appx) workforce (300,000 strong)), which is mostly semiliterate or illiterate is the main reason for the poor customer service. Further, the Top management of BSNL is still working in BSNL on deputation basis holding Government employee status thus having little commitment to the organization. Although in coming years the retirement profile of the workforce is very fast and around 25% of existing workforce will retire by 2010, however, still the workforce will also remain an issue. Access Deficit Charges (ADC, a levy being paid by the private operators to BSNL for provide service in non-lucrative areas especially rural areas) has been slashed by 37% by TRAI, w.e.f. April 01, 2007. The reduction in ADC may hit the bottom-line of BSNL.

7 Vision:

To become the largest telecom service provider.

Mission: To provide world class State-of-art technology telecom services to its customer on demand at competitive prices. To provide world class telecom infrastructure in its area of operatin and to contribute to the growth. Objective: MP Telecom looks over the management, control and operation of the telecom network with the following aims and objective: To build a high degree of customer confidence by sustaining quality and reliability in service. To upgrade the quality of telecom service to international level. Provision of telephone connections on demand in all the villages of M.P. Expansion of new services like Internet, Intelligent Network, ISDN, Internet, Telephony, Video Conferencing, Broadband etc. Popularize Broadband services and to be on-demand in the whole state. Expansion of Cellular Mobile Telephone to all towns. To open Internet Kiosks(cafs) at all Block Head Quarters. To improve the quality of present services being given to the subscribers. To open more Customer Service Centres and upgrade the existing customer service centres for better and friendly customer care. Modernize PSTN network by making RSUs & AN-RAX. Plantation of Trees to make environment Clean & Green. To raise necessary financial resources for its developmental needs. To increase accessibility of services, by providing a large number of Local and NSD/ISD Public Call Offices (PCOs) so as to reach out to the masses.

8 Products: BSNL LANDLINE o BSNL MOBILE POSTPAID PREPAID UNIFIED MESSAGING GPRS/WAP/MMS DEMOs TARIFF

o BSNL WLL o INTERNET SERVICES NETWORK BROADBAND WI-FI CO-LOCATION SERVICE BSNL WEB HOSTING DIAL UP INTERNET SMS & BULK SMS

o BSNL BROADBAND o BSNL MANAGED NETWORK SERVICES o BSNL MPLS-VPN o ISDN o LEASED LINE o INTELLIGENT NETWORK FREE PHONE SERVICE PREMIUM RATE SERVICE INDIA TELEPHONE CARD VIRTUAL PRIVATE NETWORK(VPN) VOICE VPN UNIVERSAL NUMBER UNIVERSAL PERSONAL NUMBER TELE VOTING

o VIDEO CONFERENCING

9 o AUDIO CONFERENCING o TELEX/ TELEGRAPH o EPABX EPABX FREE EPABX CENTREX

o HVNET o INMARSAT o TRANSPONDER Thus, these are the various products offered by BSNL to their valued customers according to their requirements. Today, BSNL is Indias largest Telecom and one of the largest public sectors undertaking of the country with authorized share capital of US$ 3.95 billion (INR 17,500 Crores) and net worth of US$ 14.32 billion.

10

2.1 OBJECTIVES OF THE STUDY

To find out the satisfaction level for the Performance Appraisal system in the BSNL (Bharat Sanchar Nigam Limited). To get suggestions from the employees for further improvement in existing performance appraisal system. To contribute to the growth of the organization To measure the subjectivity and objectivity, which influence the existing Performance appraisal system and remove the subjectivity and to increase the objective.

11

2.2 REVIEW OF LITERATURE

In this chapter a detailed review of literature is dealt upon the topic of Performance Appraisal. 2.2.1 First Literature Project Name: Due process in Performance Appraisal: a quasi-experiment in procedural justice.

Author: M.Susan Taylor

Abstract: Appraisal systems seem to offer much potential for enhancing the effectiveness of human resource decisions and for satisfying employees need for performance feedback. There is evidence that appraisal systems are a practical challenge to the academics who often design them and to the managers and employees who must use them.

Conclusion: Many organizational appraisal systems have failed to realize their full potential contribution to organization effectiveness.

12 2.2.2 Second Literature Project name: The current state of Performance Appraisal Research and Practice

Author: Robert D. Bretz Jr.George T. Milkovich

Abstract: Performance Appraisal research has done little to improve its usefulness as a managerial decision-making tool. Performance Appraisal research can be evaluated both in terms of its theoretical contribution and its ability to inform practice. Since the rating process involves complex cognitive processes, basic research that defines the nature of the phenomenon is clearly needed. Murphy and Blazer (1989) concluded that the correlation between rating errors and accuracy was near zero, and therefore, error measures were not good indicators of rating accuracy. Since most performance is multidimensional, some correlation between performance dimensions is expected. Therefore, raters with large observed correlations may, in fact, accurately rating performance rather than committing halo error. The ambiguity of the relationship may be due to different conceptualizations of accuracy. Conclusion: Performance Appraisal research and practice seem to converge on many issues and diverge on others. Divergence on some issues is not necessarily a problem since relevancy for decision makers is not the purpose for all research efforts. Yet Performance evaluation is an applied subject, and as such research should eventually lead to improvements in practice.

13 2.2.3 Third Literature Project name: Self-monitoring and performance appraisal

Author: Janice S. Miller, Robert L. Cardy

Abstract: Two studies examined the relationship between rate self monitoring and performance appraisal in project teams using three appraisal sources: Self, Peer and Supervisor. Study1, a laboratory study, found that high self-monitoring (HSM) subjects produced self- rating significantly higher than their low self-monitoring (LSM) counterparts. Further, higher agreement among sources occurred for LSM than for HSM subjects. HSMs tendency to portray themselves differently to various audiences resulted in less rating convergence across sources. Study 2 employing project teams in five corporations, replicated the convergence findings. Implications for use of various sources of appraisal and for understanding the role of self-monitoring in performance appraisal are discussed.

14 2.2.4 Fourth Literature Project name: HR Competency Project

Author: Brain Foster, Human Resource Administrator

Abstract: In accordance with Governor Freudenthals goal to implement a fair and equitable compensation plan, which includes a bonus for exceptional performance, it was determined that the current performance appraisal system does not provide the necessary tools to accurately measure job performance. The decision was made to develop a performance appraisal system that will more effectively assist supervisors in evaluating and working with employees to achieve their greatest potential. The system under development encompasses the concept of total performance management, which involves all aspects of employee supervision. In order to develop a performance appraisal that incorporates the concept of total performance management, it is necessary to identify the competencies on which performance and employee growth will be measured. Total performance management must achieve three distinct goals. Implementing a system that ties the performance of the employees towards the goals of the agency. This will demonstrate to employees the impact they have on the outcomes of the organization.

Conclusion: Training supervisors to obtain the competencies to accurately manage the performance of employees from start (hiring) to finish (separation from employment). Setting up the foundation for recruiting individuals who possess the competencies that the state has been identified as necessary which is to be a successful and productive state employee.

15

2.3 RESEARCH METHODOLOGY 2.3.1 DATA PROCESSING

Type of Data There are 2 types of data available to a researcher. They are primary data and secondary data Primary Data Primary data was collected from employees through the interview schedule. Secondary Data Secondary data is the organization profile and was collected from the website.

2.3.2 SAMPLING METHODS

Sampling Framework Type of Survey Sample Unit Sample Size Sampling Plan : : : : Sample Survey Employees from Bharat Sanchar Nigam Limited The sample size was limited to 100. Stratified Sampling Technique

Descriptive Research Design This study is a descriptive research design based on survey method; First hand data were collected from the employees through questionnaire method. Descriptive research describes the characteristics of a particular individual, or of a group, the researcher has come to know the need of performance appraisal required in BSNL so survey will be made to know the level of performance appraisal level from the employees in Bharat Sanchar Nigam Limited (GM office) Madurai.

16

2.3.3 DATA COLLECTION PROCESS

The employees were met at their organization and interview schedule was distributed to them for which their responses were collected.

2.3.4 TOOLS FOR ANALYSIS

Percentage Analysis Percentage method is adopted to derive the exact representation of each of the attribute from a group of responses. For each of the responses group total is first ascertained. Each individual responds in the group of the divided by the total of the group can multiple by hundred and the percentage is derived. Highest percentage is given first rank followed by other descending rankings. No. of response Percentage of respondents = ---------------------------------- * 100 Total number of respondent

17 Chi-Square Analysis A chi square test, developed by Prof.Fisher is considered as an important test amongst the several tests used in statistics for judging the significance of the sampling data. It is statistical measure with the help of which it is possible to assess the significance of the difference between the observed frequencies and the expected frequencies obtained from some hypothetical universe. Chi-square test enables us to test whether more than two population proportion can be considered equal. In order to that a chi-square test may be grouped in some way and the theoretical distribution must be adjusted to give the same total frequency which is equal to that of observed frequencies. The observed and expected frequencies completely coincide when the chi-square is zero. Chi-square is calculated with the help of following formula X2 = (O-E)2 E

Where

O = Observed frequency E = Expected frequency E = Row total x Column total Grand total

2.3.5 Limitations of the Study

Geographical The study is limited to Bharat Sanchar Nigam Limited GM office B.B.Kulam Madurai. Temporal The period of research is limited for a short span. Hence, all data & their temporal context may pertain to change in future.

18

3. ANALYSIS AND INTERPRETATION 3.1 DATA ANALYSIS

In the collection of data, there are two important things - the sources of information and the method of collecting the data. Sources of data can be primary or secondary. Primary sources include the original documents i.e. the first reporting of facts while secondary sources are facts from primary sources. According to PROF JOHN GATTING Analysis of data refers to seeking the data in the light of hypothesis of research questions and the prevailing theories and drawing conclusions that are as amenable to theory formation as possible Interpretation is the task of drawing conclusions and inferences from a careful analysis of data. Analysis and Interpretation means mass data need to be reduced to meaningful number by using various statistical devices like averages, mean, percentage, correlation, rank correlation, regression, pie diagrams, simple bar diagram, horizontal bar diagram, cylindrical bar diagram, graph, percentage bar diagram etc. For materials evaluation, relevance, suitability for age, needs of learners and sequencing are also to be seen.

3.2 DISCUSSION
The datas collected are discussed by applying statistical tools namely Percentage Analysis & Chi-Squrae Analysis and they are represented in diagrammatic form and inference are given for each factors in this chapter.

19

3.3 DIAGRAMMATIC REPRESENTATAION

TABLE 3.3.1 GENDER OF THE EMPLOYEES:

S. No 1 2

Gender Female Male TOTAL

No. of Respondents 37 63 100

Percentage (%) 37.0 63.0 100.0

FIGURE 3.3.1

37% Female Male 63%

INFERENCE From the above table it is inferred that 37.0% of the respondents are Female and 63.0% of the respondents are male respondents.

20 TABLE 3.3.2 AGE LEVEL OF THE EMPLOYEES

S. No 1 2 3

Age Level Below 35 years 36-45 years Above 45 years Total

No. of Respondents 35 34 30 100

Percentage (%) 35.0 34.0 30.0 100.0

FIGURE 3.3.2

Chart Title
36 34 32 30 28 26 Below 35years 36-45 years Above 45 years Series1

INFERENCE It is identified from the above table that 35.0% of the respondents belongs to below 35 years, 34.0% of the respondents belongs to 36-45 years of age level and 30.0% of the respondents belongs to above 45 years of age level.

21 TABLE 3.3.3 DESIGNATION OF THE EMPLOYEES

S. No 1 2 3 4 5 6

Designation Clerk Officer Operator Supervisor Engineer Manager Total

No. of Respondents 20 21 16 28 14 1 100

Percentage (%) 20.0 21.0 16.0 28.0 14.0 1.0 100.0

FIGURE 3.3.3
30 25 20 15 10 5 0 clerk officer operator supervisor engineer manager

INFERENCE: It is found from the above table that 20.0% of the respondents were clerk grade, 21.0% of the respondents were officer grade, 16.0% of the respondents were operator grade, 28.0% of the respondents were supervisor grade, 14.0% of the respondents were engineer grade and 1.0% of the respondents were Manager grade.

22 TABLE 3.3.4 DEPARTMENT OF THE EMPLOYEES

S. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Department JTO(Junior Telecom officer) SDE(Sub-Divisional Engineer) DE(Divisional Engineer) DGM(Deputy General Manager) DM(Draughts Man) TSO(Telecom Supervisor officer) SSO(Senior Section Officer) TOA(Telecom Office Assistant) TS(Telecom supervisor) TO(Telecom operator) TC(Telecom clerk) CTS(Chief Trunk Supervisor) STS(Senior Trunk Supervisor) SS(Section Supervisor) TOTAL

No. of Respondents 3 2 5 3 6 12 6 15 11 7 9 6 8 7 100

Percentage (%) 3.0 2.0 5.0 3.0 6.0 12.0 6.0 15.0 11.0 7.0 9.0 6.0 8.0 7.0 100.0

FIGURE 3.3.4

23
16 14 12 10 8 6 4 2 0 JTO SDE DE DGM DM TSO SSO TOA

TS

TO

TC

CTS

STS

SS

INFERENCE:

It is found from the above table that 3.0% of the respondents have been working in JTO department, 2.0% of the respondents have been working in SDE department, 5.0% of the respondents have been working in DE department, 3.0% of the respondents have been working in DGM department, 6.0% of the respondents have been working in DM department, 12.0% of the respondents have been working in TSO department, 6.0% of the respondents have been working in SSO department, 15.0% of the respondents have been working in TOA department, 11.0% of the respondents have been working in TS department, 7.0% of the respondent have been working in TO department, 9.0% of the respondent have been working in TC department, 6.0% of the respondent have been working in CTS department, 8.0% of the respondent have been working in STS department, 7.0% of the respondent have been working in SS department.

24 TABLE 3.3.5 EXPERIENCE OF THE EMPLOYEES

S. No
1 2 3 4

Experience (in years)

Up to 5 years 5-15 years 16-25 years Above 25 years Total

No. of Respondents
2 26 27 45 100

Percentage (%)
2.0 26.0 27.0 45.0 100.0

FIGURE 3.3.5

45 40 35 30 25 20 15 10 5 0 Upto 5 years 5-15 years 16-25 years Above 25 years

INFERENCE: From the above table it is found that 2.0% of the respondents have up to 5 years of experience, 26.0% of the respondents have 5-15 years of experience, 27.0% of the respondents have 16-25 years of experience and 45.0% of the respondents have above 25 years of experience

25 TABLE 3.3.6 MONTHLY INCOME LEVEL OF THE EMPLOYEES

S. No 1 2 3

Monthly Income Up-to Rs.12000 Rs.12001 - Rs.20000 Above Rs. 20000 Total

No. of Respondents 25 28 47 100

Percentage (%) 25.0 28.0 47.0 100.0

FIGURE 3.3.6

47 28

25

upto Rs. 12000

Rs.12001 - Rs. 20000

Above Rs.20000

INFERENCE: It is found that the above table that 25.0% of the respondents have their monthly income up-to 12000, 28.0% of the respondents have their monthly income in the range of Rs.12001-Rs.20000, 47.0% of the respondents have their monthly income of above Rs.20000.

26 TABLE 3.3.7 LEVEL OF EFFECTIVENESS OF PERFORMANCE APPRAISAL

S. No 1 2 3

Level of Effectiveness Low Medium High Total

No. of Respondents 32 33 35 100

Percentage (%) 32.0 33.0 35.0 100.0

FIGURE 3.3.7

35 34 33 32 31 30 29 Low Medium High

INFERENCE: It is observed from the above table that 32.0% of the respondents have low level of effectiveness, 33.0% of the respondents have medium level of effectiveness, and 35.0% of the respondents have high level of effectiveness with respect to Performance Appraisal.

27 TABLE 3.3.8 AWARENESS OF PERFORMANCE APPRAISAL

S. NO 1 2

AWARENESS Yes No Total

NO OF RESPONDENTS 72 28 100

PERCENTAGE (%) 72.0 28.0 100.0

FIGURE 3.3.8

80 60 40 20 0 Yes No 28 72

INFERENCE:
It is observed from the above table that 72.0% of the respondents have aware of performance appraisal, 28.0% of the respondents has not know about performance appraisal.

28

TABLE 3.3.9 NUMBER OF EMPLOYEES APPRAISED DURING SERVICE PERIOD

S. No 1 2

Appraised Yes No

No. of Respondents 68 32

Percentage (%) 68.0 32.0

Total

100

100.0

FIGURE 3.3.9

no 32%

yes 68%

INFERENCE: It is observed from the above table that 32.0% of the respondents have not appraised in service period, 68.0% of the respondents have appraised in service period.

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TABLE 3.3.10 EMPLOYEES OPINION FOR PERFORMANCE APPRAISAL

S. NO EMPLOYEES OPINION Evaluation of employees Promotion of employees Job satisfaction of employees Motivation No. of Respondents 30 24 28 18 Percentage (%) 30.0 24.0 28.0 18.0

1 2 3 4

Total

100

100.0

FIGURE 3.3.10

40 20 0

30 24 28 18 evaluation of promotion of employees employees job satisfaction of employees

motivation

INFERENCE:
It is observed from the above table that 30.0% of the respondents have said that performance appraisal is done for evaluating the employees, 24.0% of the respondents has said that performance appraisal is done for promotion of employees, 28.0% of the respondents has said that performance appraisal is done for job satisfaction of employees and 18.0% of the respondents have said that performance appraisal is done for motivation.

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TABLE 3.3.11 FREQUENCY OF PERFORMANCE APPRAISAL

S. NO FREQUENCY OF PERFORAMANCE APPRAISAL No. of Respondents Percentage (%)

1 2

Once in a year Once during the service period

89 7

89.0 7.0

3 4

Never Cant say Total

0 4 100

0.0 4.0 100.0

INFERENCE: It is observed from the above table that 4.0% of the respondents have said that frequency of performance appraisal is done in any time they cant say, and 7.0% of the respondents said that they will be evaluate once in during service period and 89.0% of the respondents said that performance appraisal is done in once in a year.

31

FIGURE 3.3.11

89 90 80 70 60 50 40 30 20 10 0 Once in a year

0 Never

Once during the service period

Cant say

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TABLE 3.3.12 GAP BETWEEN PERFORMANCE APPRAISALS

S. NO

FREQUENCY OF PERFORAMANCE APPRAISAL

No. of Respondents

Percentage (%)

1 2 3

Quarterly Half-yearly Yearly Total

20 44 36 100

20.0 44.0 36.0 100.0

FIGURE 3.3.12
50 40 30 20 10 0 Quaterly Half Yearly Yearly 20 44 36

INFERENCE: It is observed from the above table that 20.0% of the respondents have said that there is quarterly gap between two appraisal periods, 44.0% of the respondents have said halfyearly and 36.0% of the respondents have said that there is yearly gap between the two appraisal periods.

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TABLE 3.3.13 Who should do the Appraisal?

S. No 1 2 3
4 5 6 7

Appraisers Superior Peer Self-Appraisal

Sub-ordinate Consultant All the above Superior + Peer Total

No. of Respondents 78 5 2
4 4 2 5 100

Percentage (%) 78.0 5.0 2.0

4.0 4.0 2.0 5.0 100.0

FIGURE 3.3.13
78

INFERENCE:
It is observed from the above table that 78.0% of the respondents have chosen superior as a appraiser, 5.0% of respondents have chosen superior + peer and peer, 4.0% of the respondents have chosen sub-ordinate and consultant as their appraiser and 2.0% of the respondents have chosen self-appraisal is the best way for appraising.

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TABLE 3.3.14 METHOD OF PERFORMANCE APPRAISAL FOLLOWED IN BSNL S. NO Methods No of Respondents

1 2 3 4 Ranking Method Paired Comparison Critical Incidents MBO 58 15 4 12 58.0 15.0 4.0 12.0

Percentage (%)

5 6

360 degree Assessment Centre Total

5 6 100

5.0 6.0 100.0

FIGURE 3.3.14
60 50 40 30 20 10 0 Ranking Method Paired Comparison Critical Incidents MBO 360 degree Assessment Centre

INFERENCE:
It is observed from the above table that 58.0% of the respondents have chosen ranking method, 15.0% of the respondents have chosen paired comparison, 4.0% of the respondents have chosen critical incidents, 12.0% of the respondents have MBO, 5.0% of the respondents have chosen 360 degree, 6.0% of the respondents have chosen Assessment centre for Performance Appraisal.

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TABLE 3.3.15 DOES PERFORMANCE APPRAISAL HELPS IN POLISHING SKILLS AND PERFORMANCE AREA S. NO Options No. of Respondents 1 2 3 Yes No Somewhat Total 74 10 16 100 74.0 10.0 16.0 100.0 Percentage (%)

FIGURE 3.3.15

80 60 40 20 0 Yes No Somewhat

INFERENCE:
It is observed from the above table that 74.0% of the respondents have accepted that performance appraisal helps employees to polish the skills, 10.0% of the respondents said that performance appraisal does not serve this purpose and 16.0% were not able to respond as to whether it serve any such purposes or not.

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TABLE 3.3.16 DOES PERFORMANCE APPRAISL LEADS TO IDENTIFY HIDDEN POTENTIAL

S. NO Options No. of Respondents Percentage (%)

1 2 3

Yes No Somewhat Total

91 2 7 100

91.0 2.0 7.0 100.0

FIGURE 3.3.16

100 80 60 40 20 0 Yes No Somewhat

INFERENCE:
It is observed from the above table that 91.0% of the respondents said that Performance Appraisal helps them to identify potential, 2.0% of the respondents said that performance appraisal does not helps to identify the potential and 7.0% of the respondents have said that performance appraisal somewhat helps to identify the potential.

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TABLE 3.3.17 IF GIVEN A CHANCE, WOULD EMPLOYEES LIKE CURRENT APPRAISAL TECHNIQUE TO REVIEW
S. NO 1 2 3 Options Yes No Cant say Total No. of Respondents 87 4 9 100 Percentage (%) 87.0 4.0 9.0 100.0

FIGURE 3.3.17

100 80 60 40 20 0 Yes No Cant say

INFERENCE:
It is observed from the above table that 87.0% of the respondents have suggested the performance appraisal should be reviewed, 4.0% of the respondents have said that the current performance appraisal is good no need to review and 9.0% of the respondents have said that they cant say that the performance appraisal should be reviewed.

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TABLE 3.3.18 PROMOTION, TRANSFER, DEMOTION, SUSPENSION AND DISMISSAL IS PURELY BASED ON THE PERFORMANCE APPRAISAL

S. No

OPTIONS

No. of Respondents

Percentage (%)

1 2 3

Yes No Sometimes Total

70 9 21 100

70.0 9.0 21.0 100.0

FIGURE 3.3.18

70 60 50 40 30 20 10 0 Yes No Sometimes

INFERENCE:
It is observed from the above table that 70.0% of the respondents have said that the promotion, demotion is all based that Performance appraisal, 21.0% of the respondents have said that sometimes it is based on the performance appraisal.

39

TABLE 3.3.19 OVERALL PERFORMANCE IN LAST THREE YEARS S. No Options No. of Respondents 1 2 3 4 5 Strongly Satisfied Satisfied Neutral Dissatisfied Strongly dissatisfied Total 24 55 19 2 0 100 24.0 55.0 19.0 2.0 0 100.0 Percentage (%)

FIGURE 3.3.19
60 40 20 0 Strongly Satisfied Satisfied Neutral Dis-Satisfied Strongly Satisfied

INFERENCE:
It is observed from the above table 24.0% of the respondents have strongly satisfied the performance appraisal, 55.0% of the respondents have satisfied the performance appraisal,19.0% of the respondents have neutral with the performance appraisal and 2.0% of the respondents have not satisfied with the performance appraisal.

40

TABLE 3.3.20 AFTER PERFORMANCE APPRAISAL IMPROVEMENT IN YOUR PERFORMANCE

S. No 1 2 3 4 Options 10-20 20-30 Above 30 Motivation Total No. of Respondents 2 6 30 62 100 Percentage (%) 2.0 6.0 30.0 62.0 100.0

FIGURE 3.3.20

80 60 40 20 0 Oct-20 20-30 Above 30 Motivation

INFERENCE:
It is observed from the above table that 2.0% of the respondents have said that after performance appraisal they have improvement of 10-20, 6.0% of the respondents said 20-30 and 30.0% of the respondents have said after performance appraisal they have improvement of Above 30 and 62.0% of the respondents have said that after performance appraisal they motivate themselves.

41

TABLE 3.3.21 DOES BSNL FOLLOW 360 DEGREE PERFORMANCE APPRAISAL PROCESS S. NO OPTIONS NO OF RESPONDENTS 1 2 Yes No Total 5 95 100 PERCENTAGE (%) 5.0 95.0 100.0

FIGURE 3.3.21

Chart Title

Yes 5%

No 95%

INFERENCE:
It is observed from the above table that 5.0% of the respondents have agreed that they are following the 360 performance appraisal method and 95.0% of the respondents have not said that they are not following 360 degree Performance appraisal method.

42

TABLE 3.3.22 WHETHER BSNL EMPLOYEES SUPPORTS THE 360 DEGREE PERFORMANCE APPRAISAL METHOD
LEVEL OF EFFECTIVENESS S. no Factors Neither Agree agree nor Disagree 360 degree helps to provide an atmosphere Disagree

where all are encouraged to share one another burden. 360 degree helps

18(16.66%)

63(45.3%)

19(35.8%)

employee to set and achieve goals. 360 degree gives

57(52.7%)

23(16.5%)

20(37.7%)

constructive criticism in a friendly and positive manner.

33(30.5%)

53(38.1%)

14(26.4%)

GRANT TOTAL
Level of effectiveness (Mean)

108 36

139 46.33

53 17.66

43

INFERENCE:
63.0% of the respondents neither agree nor disagree that 360 degree performance appraisal helps them to provide an atmosphere where all are encouraged to share one another burden. 53.0% of the respondents have agreed that 360 degree performance appraisal helps employee to set and achieve the goals.

53.0% of the respondents have neither agreed nor disagree that 360 degree gives
constructive criticism in a friendly and positive manner.

44

CHI-SQUARE - HYPOTHESIS TESTING:

TABLE 3.3.23 AGE AND LEVEL OF EFFECTIVENESS OF PERFORMANCE APPRAISAL (TWO WAY TABLE)

Age LOW Below 35 years 36-45 years Above 45 years COLUMN TOTAL 12 10 10 32

Level of Effectiveness MEDIUM 16 7 10 33 HIGH 6 18 11 35

ROW TOTAL

34 35 31 100

Null Hypothesis (H0)

There is no significant relationship between age and level of

effectiveness of performance appraisal.

Alternative Hypothesis (H1):

There is close significant relationship between age and

level of effectiveness of performance appraisal. Chi-square formula 2 = (O-E) ^2/ E

AGE Low Below 35 years O E 36-45 years O E Above 45 years O E COLUMN TOTAL 12 10.88 10 11.2 10 9.92 32

LEVEL OF EFFECTIVENESS Medium 16 11.22 7 11.55 10 10.23 33 High 6 11.9 18 12.25 11 10.85 35

ROW TOTAL

34

35

31

100

45
OBSERVED VALUE (O) 12 10 10 16 7 10 6 18 11 EXPECTED VALUE(E) 10.88 11.2 9.92 11.22 11.55 10.23 11.9 12.25 10.85 CHI-SQUARE 2 TOTAL 2 = (O-E)^2/E 0.115 0.128 6.45*10^-4 2.036 1.792 5.171*10^-3 2.925 2.69 1.911*10^-4 9.692

CHI SQUARE TEST: Calculated 2 value = 9.692 Degree of freedom Table value Result =4 = 9.488 = Significant at 5% level

INFERENCE:

It is found from the above table that calculated value is greater than the table value at 4 degree of freedom. So, Null hypothesis (H0) rejected. Hence it is concluded that there is close significant relationship between age and level of effectiveness of performance appraisal.

46 TABLE 3.3.24 MONTHLY INCOME AND LEVEL OF EFFECTIVENESS OF PERFORMANCE APPRAISAL (TWO-WAY TABLE)

MONTHLY INCOME

LEVEL OF EFFECTIVENESS LOW MEDIUM 11 7 15 33 HIGH 6 7 22 35

ROW TOTAL

UPTO 12,000 12,000 20,000 Above 20,000 COLUMN TOTAL

8 14 10 32

25 28 47 100

Null Hypothesis:

There is no significant relationship between monthly income and level

of effectiveness of Performance Appraisal. Alternative Hypothesis: There is close significant relationship between monthly Income

and level of effectiveness of Performance Appraisal. Chi-square formula 2 = (O-E) ^2/ E

MONTHLY INCOME LOW UPTO 12,000 12,000 20,000 O E O E Above 20,000 O E COLUMN TOTAL 8 8 14 8.96 10 15.04 32

LEVEL OF EFFECTIVENESS MEDIUM 11 8.25 7 9.24 15 15.51 33 HIGH 6 8.75 7 9.80 22 16.45 35

ROW TOTAL

25

28

47

100

47

OBSERVED VALUE (O) 8 14 10 11 7 15 6 7 22

EXPECTED VALUE (E) 8 8.96 15.04 8.25 9.24 15.51 8.75 9.80 16.45 CHI-SQUARE TOTAL
2

2 = (O-E)^2/E 0 2.835 1.688 0.916 0.543 0..016 0.864 0.8 1.872 9.534

CHI-SQUARE TEST:

Calculated chi-square value= 9.534 Degree of Freedom = 4 Table value = 9.534 Result = significant at 5 % level.

INFERENCE

It is found from the above table that calculated value is greater than the table value at 4 degree of freedom. So, Null hypothesis (H0) rejected. Hence it is concluded that there is close significant relationship between monthly income and level of effectiveness of performance appraisal.

48 TABLE 3.3.25

EXPERIENCE AND LEVEL OF EFFECTIVENESS OF PERFORMANCE APPRAISAL

EXPERIENCE LOW UPTO 15 YEARS 16-25 YEARS ABOVE 25 YEARS COLUMN TOTAL 13 11 8 32

LEVEL OF EFFECTIVENESS MEDIUM 6 11 16 33 HIGH 9 5 21 35

ROW TOTAL

28 27 45 100

Null Hypothesis:

There is no significant relationship between experience and level of

effectiveness of Performance Appraisal. Alternative Hypothesis: There is close significant relationship between experience and

level of effectiveness of Performance Appraisal. Chi-square formula 2 = (O-E) ^2/ E

Experience Low

Level of effectiveness Medium 6 9.24 11 8.91 16 14.85 33 High 9 9.80 5 9.45 21 15.75 35

Row total

Up-to 5 years

O E

13 8.96 11 8.64 8 14.40 32

28

16-25 Years

O E

27

Above 25 years O E COLUMN TOTAL

45

100

49
OBSERVED VALUE (O) 13 11 8 6 11 16 9 5 21 EXPECTED VALUE (E) 8.96 8.64 14.40 9.24 8.91 14.85 9.80 9.45 15.75 CHI-SQUARE 2 TOTAL 2 = (O-E)^2/E 1.821 0.644 2.844 1.136 0.490 0.089 0.065 2.095 1.75 10.934

CHI - SQUARE TEST

Calculated 2 value Degree of Freedom Table value Result

= = = =

10.934 4 9.488 Significant at 5% level

INFERENCE

It is found from the above table that calculated value is greater than the table value at 4 degree of freedom. So, Null hypothesis (H0) rejected. Hence it is concluded that there is close significant relationship between experience and level of effectiveness of performance appraisal.

50 TABLE 3.3.26

DESIGNATION AND LEVEL OF EFFECTIVENESS OF PERFORMANCE APPRAISAL

DESIGNATION Clerk Officer Supervisor Engineer and operator COLUMN TOTAL

LEVEL OF EFFECTIVENESS LOW MEDIUM HIGH

ROW TOTAL

10 10 6 6 32

5 5 15 8 33

7 5 7 16 35

22 20 28 30 100

Null Hypothesis:

There is no significant relationship between designation and level of

effectiveness of Performance Appraisal. Alternative Hypothesis: There is close significant relationship between designation and

level of effectiveness of Performance Appraisal. Chi-square formula 2 = (O-E) ^2/ E

51

DESIGNATION Clerk O E Office O E Supervisor O E Engineer and operator O E

LEVEL OF EFFECTIVENESS LOW MEDIUM HIGH

ROW TOTAL

10 6.40 10 6.72 6 8.96 6 9.92 32

5 6.60 5 6.93 15 9.24 8 10.23 33

7 7 5 7.35 7 9.80 16 10.85 35

22

20

28

30

COLUMN TOTAL

100

OBSERVED VALUE (O)

EXPECTED VALUE (E)

2 = (O-E)^2/E

10 10 6 6 5 5 15 8 7 5 7 16

6.40 6.72 8.96 9.92 6.60 6.93 9.24 10.23 7 7.35 9.80 10.85
CHI-SQUARE 2 TOTAL

2.025 1.600952 0.977857 1.549032 0.387879 0.537504 3.590649 0.486109 0 0.751361 0.8 2.44447 15.15081

52 CHI - SQUARE TEST Calculated 2 value Degree of Freedom Table value Result = = = = 15.15081 4 12.592 Significant at 5% level

INFERENCE

It is found from the above table that calculated value is greater than the table value at 4 degree of freedom. So, Null hypothesis (H0) rejected. Hence it is concluded that there is close significant relationship between designation and level of effectiveness of performance appraisal.

53

4.1 SUMMARY OF FINDINGS

From the analysis it is found that 63% of the respondents are male.

Maximum (35.0%) of the respondents age were below 35 years.

Most (28.0%) of the respondents belongs to Supervisor designation.

Majority (15.0%) of the respondents were in Telecom Office Assistant Department.

Maximum (45.0%) of the respondents have above 25 years of experience.

Most (47.0%) of the respondents have their monthly income of above Rs. 20000.

Maximum (35.0%) of the respondents have high level effectiveness of performance appraisal.

Most (72.0%) of the respondents were aware of performance appraisal. Most (30.0%) of the respondents opinion that performance appraisal is done for Evaluating the employees.

Most (89.0%) of the respondents said that performance appraisal is done once in a year.

Most (78.0%) of the respondents chose supervisor as their appraiser.

Most (58.0%) of the respondents chose ranking method for performance appraisal.

Most (74.0%) of the respondents agreed that performance appraisal helps in polishing skills and performance area.

54 Maximum (91.0%) of the respondents agreed that performance appraisal leads to identify the hidden potential.

Most (87.0%) of the respondents suggest that current performance appraisal should reviewed.

Most (70.0%) of the respondents were agreed that promotion, transfer, demotion, suspension and dismissal is based on performance appraisal.

Most (55.0%) of the respondents were agreed that they get improved with performance appraisal in last three years.

Most (62.0%) of the respondents were not aware of 360 degree performance appraisal method.

Most (95.0%) of the respondents neither agreed nor disagreed with 360 performance appraisal method.

Chi-Square Method: It is concluded that there is close association between Age and Level of effectiveness. It is concluded that there is close relationship between monthly income and level of effectiveness. It is concluded that there is close relationship between experience and level of effectiveness. It is concluded that there is close relationship between designation and level of effectiveness.

55

4.2. SUGGESTIONS AND RECOMMENDATIONS

Maximum of respondents are not satisfied with their performance appraisal system.
It is suggested to consider the current appraisal system and there is a need for improvement. Consistent and equitable system of rewards can be formulated. Opportunities for promotions and advancement must be adequately provided for further up-liftmen of employees.

56

4.3. CONCLUSION
In every organization, job satisfaction plays a vital role. Employees tend to satisfy if they meet their needs, wants, requirements and most of all job recognition and encouragement from the top management is expected so their work has to be appreciated by a method of performance appraisal. So by enhancing these appraisal techniques, it helps in level of job satisfaction and healthy work atmosphere.

Thereby effective performance appraisal method encourages employees in work and it also helps in improving their individual responsibility which in turn affects profitability of the organization.

57

BIBLIOGRAPHY
1. Tripathi P.C (2002), Personnel Management and Industrial Relations by Sultan chand & Sons 2. Mamoria C.B (2002), publishing house 3. Malhotara R.K. Sharama S.D.& Nachhathar Singh (1999) Personnel Personnel Management published by Himalaya published

management (New Delhi) Arnold Publications (p) Ltd., 4. C.R. Kothari (1999), Research Methodology, Methods and Techniques, Wishwa Prakasan publication Websites www.bsnl.co.in www.managementstudyguide.com

58

APPENDIX
COPY OF INTERVIEW SCHEDULE Interview Schedule for Identifying the Performance Appraisal Dear Respondent, I am G.S.Vaishnavi pursuing MBA in KLN college of Engineering. As a part of my curriculum I am undergoing a project titled, A Study on Annual Performance Appraisal in BSNL, Madurai. I kindly request you to spare your valuable time to fill the following data which is strictly for academic purpose and high confidentially will be maintained. Individual will be identified during analysis. Fair response is highly solicited. 1. Name of the respondent (optional) _________________________________ 2. Gender 3. Age: Male Below 25 Female 25-35 36-45 Above 45

4. Department: ___________________________________________________ 5. Designation: ____________________________________________________ 6. Years of Experience: less than 5 years 16-25 years 7. Monthly Income: Up-to Rs. 12,000 Above Rs. 20,000. 8. Are you Aware of technique of performance appraisal being followed at BSNL? Yes No Rs. 12001 Rs. 20,000 5-15 years above 25 years

8. Were you informed about the performance appraisal model, used in the BSNL, during your Induction? Yes No

9. In your opinion performance appraisal is ____________ a. Evaluation of Employees b. Promotion of Employees c. Job satisfaction of Employees d. Motivation

59 10. The performance standards are communicated to the employees in

advance______________________________________________ Yes No Never 11. Employees perception to the frequency of appraisal a. Once in a year b. Once during the service period c. Continuous d. Never e. Cant say 12. If continuous appraisal- what is the gap between two appraisal period a. Quarterly b. Half Yearly c. Yearly 13. Appropriate method of conducting the performance appraisal. a. Ranking Method b. Paired Comparison c. Critical Incidents d. MBO e. 360 degree f. Assessment centre 14. Who is authority to do the appraisal? a. Superior b. Peer c. Self-Appraisal d. Sub-ordinate e. Consultant f. All the above g. Superior + peer

60 15. In your opinion performance Appraisal system of your organization is related to which of the following? a. Retention of Employees b. Promotion c. Monetary Benefit/ Incentives 16. Is the Top level Management partial in Performance Appraisal Yes No

17. Do you think Performance Appraisal helps to change behaviour of Employees Yes No

18. If given a chance or an opportunity would you like that the current Appraisal procedure should be reviewed? Yes SA- STRONGLY AGREE DISAGREE DA-DISAGREE A AGREE No NN-NEITHER AGREE NOR

SDA- STRONGLY DISAGREE

S.NO 19

FACTORS Satisfied with the existing performance appraisal system

SA

A NN DA

SDA

20

The performance appraisal helps to win co-operation and team work

21

The performance appraisal is helpful in reducing grievance among the employees

22

The performance appraisal is helpful for improving personnel skill

23

The performance appraisal system helps to identify the strength and weakness of the employee

24 25

Promotion is purely based on performance appraisal Management fixes salary through the performance rating

26

Transfer, demotion, suspension and dismissal is based on performance appraisal

61 27 Performance appraisal improving the productivity of the employee 28 29 Overall performance in last three years 360 degree helps to provide an atmosphere where all are encouraged to share one another burden 30 360 Degree performance appraisal helps people set and achieve meaningful goals 31 360 Degree performance appraisal gives constructive criticism in a friendly and positive manner 32 360 degree appraisal process create a participative environment in the organization

33. Level of performance appraisal effectiveness Low Medium High

34. Does the BSNL Follow 360degree Performance Appraisal Process? Yes No

35. After performance appraisal, Rate the level of improvement in your performance. a.10-20 b. 20-30 c. 30- above d. Motivation 36. Suggestions and views ___________________________________________________________________________ ___________________________________________________________________________ ____________________________________________________________.