Performance Appraisal Bajaj Allianz

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PERFORMANCE APPRISAL

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Chapter 1

Company Profile

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COMPANY PROFILE

Mission: To become a responsible customer focused market leader. We

still strive to understand the insurance needs of the consumers and

translate it into affordable products that deliver value for money.

Vision:

To be the first choice insurer for customers.

To be the prefer red employee for s ta ff i n the insurance

industry.

To be the number one insurer for creating shareholder value.

Bajaj Allianze Life Insurance

Is the fastest growing private life insurance company in India.

Currently have over 300000 satisfied customers.

Have Customer care centers in 156 cities with 28000 Insurance Consultant

providing the finest customer service.

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Bajaj Allianz General Insurance Company Limited is a joint venture

between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a

reputation of expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and

Development Authority (IRDA) certificate of Registration (R3) on

May 2nd, 2001 to conduct General Insurance business ( including

Health Insurance business) in India. The Company has an authorized

and paid up capital o f Rs.110 crores. Bajaj Auto holds 74% and

Allianz holds the remaining 26%. AG, Germany.

In i ts f i rs t year of operat ions the company has acquired the NO. 1

status among the private non-life insurers. As on 31 s t March 2003,

Bajaj Allianze General Insurance maintained its leadership position by

garnering a premium income of Rs.300 Crores. Bajaj Allianze also

became one of the few companies to make a profit in its first full year

of operations. Bajaj Allianz made a profit after tax of Rs.9.6 crores.

Bajaj Allianze today has a network of 40 offices spread across the

length and breadth of the country. From Surat to Sliliguri and Jammu

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to Thiruvananthapuram, all the 38 offices are interconnected with the

Head Office at Pune.

In the first half of the current financial year, 2004-05, Bajaj Allianz

generated a premium income of Rs.405 crores, achieving a growth of

84% and registered a 52% growth in Net profit of Rs. 20 Crores over

the last year for the same period. In the financial year 2003-04, the

premium earned was Rs.480 Crores, which is a jump of 60% and the

profit zoomed by 125% to Rs. 21.6% Crores.

Shareholders & Promoters

Bajaj Auto Limited

Bajaj Auto Limited is the largest manufacturer of two and three-

wheelers in India and also one of the largest manufacturers in the

world. Bajaj Auto has been in operation for over 55 years. As a

promoter of Bajaj Allianz General Insurance Company Ltd., Bajaj

Auto has the following to offer:

Vast distribution network.

Knowledge of Indian consumers.

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Financial strength and stability to support the insurance business

Allianz AG, Germany

Allianz Group is one of the world's leading insurers and financial services

providers.

Founded in 1890 in Berlin, Allianz is now present in more than 70

countries with over 177,000 employees. At the top of the international

group is the holding company, Allianz AG, with its head office in

Munich.

Allianz Group provides its more than 60 million customers worldwide

with a comprehensive range of services in the areas of

Property and casualty insurance,

Life and health insurance,

Asset management and banking.

In fiscal year 2005, Allianz's total revenues amounted to some 100.9

billion euros. At the end of 2005 Allianz Group had more than 1.26

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trillion euros in assets under management. Of this, 743 billion euros

were assets managed for third parties.

CORE COMPETENCIES AT BAJAJ ALLIANZ LIFE INSURANCE

Trust

Claims Philosophy Customer Orientation

Experienced and Expert Servicing Team

Superior Technology

Unique Forms of Risk Cover

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Chapter 2.

Introduction of Topic

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Introduction of Topic

From immemorial time, man has continuously assesses their capability with

others. This urge to do better has resulted in his continuously evolution which is

vital for the growth of any business. Performance Appraisal (PA) is one such

tool to measure the performance of an employee. Employee performance appraisal

is an effective way to determine the performance of the employees in an

organization. Performance Appraisal (PA) is mainly used to determine the wage

increase, promotions, transfer and layoffs, termination of services & the training

and development to the employees in an organization. It serves as a tool to

determine the future of the organization and visualize the career growth of the

employees.

Performance Appraisal (PA) is normally done by senior executives and the

senior manager in the organization to appraise the employee for their performance

and also to find out difficulties while meeting their goals. During this period of

carrying out the process the appraiser faces the problem in rating the

subordinate/employee/peer and sometime they may rate their subordinate wrongly,

which will block the whole purpose of the appraisal system.

From user testing, the traditional appraisal system found to be efficient in

the issues like: it help to evaluate the true abilities of employees,help employees to

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understand organizational goals, and to provide fast and effective feedback. The

users found the system easyto understand and use and were more satisfied with the

overalleffectiveness of the system.

The main focus of the study of this is to identify the areas in Performance

Appraisal System that would help in the organizational development. Every

organization has made it mandatory to have this appraisal done once in a year to

measure their employee performance. Hence, there should be well-defined

appraisal procedure which is properly used to evaluate employees performance.

This study report aims at covering all aspects related to performance.

In order to make this report comprehensive, sample appraisals are also provided.

This study was conducted at bajaj allianz life insurance co. ltd, new delhi

The objective of the questionnaire was to obtain employees opinion on

performance appraisal (PA) system in their organisation.

The Structural questionnaire prepared for HR survey comprised of two parts:

First part regards the demographic of the respondents, asking their

name, designation, qualifications and department in the company (Vice

President, Senior HR consultants, Business Development Executive), their

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tenure with the organisation and total experience.

The demographic characteristics of the respondent group were as follows.

There is Vice President who has experience of work since 15 years in the

organisation, Senior HR consultants who work experience of 1-5 years

experience, Business development executive who work experience of 0-1

years.

Second part of the questionnaire consisted of quantitative and

qualitative statements. In order to identify importance of the factors indetermining.

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Chapter 5

Scope & Objective

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OBJECTIVES OF THE PROJECT

The basic objectives of this project is:

To find out present performance appraisal

system used in the company.

To find about the employees views for the

system adopted by the company to appraise

their performance.

To know about the working scheme of the

company.

To suggest some measures for improving the

methods to appraise the performance of the

workers.

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Chapter 3.

Literature Review

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Performance Appraisal

What is Performance Appraisal?

Performance appraisal is a systematic and objective way of judging the

relative worth or ability of an employee in performing the task.

Performance appraisal helps to identify those who are

performing their assigned tasks and those who are not and the

reasons for such performance.

Modern Appraisal:-

Performance appraisal may be defined as a structured formal interaction between a

subordinate and supervision , that usually takes the form of a periodic interview

(annual or semi annual), in which the work performance of the subordinate is

examined and discussed with a view to identifying weakness and strengths as

well as opportunities for improvement and skills development.

In many organizations but not all appraisal results are used, either directly or

indirectly, to help determine reward outcomes. That is the appraisal results are

used to identify the better performing employees who should get the majority of

available merit pay increases, bonuses and promotions.

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By the same token , appraisal results are used to identify the poorer perform- ers

who may require some form of counseling , or in extreme cases ,demotion,

dismissal or decreases in pay . (Organizations need to be aware of laws in their

country that might restrict their capacity dismiss employees or decrease

pay).Whether this is an appropriate use of performance appraisal the assignment

and justification of rewards and penalties is very uncertain and contentious

matter.

Performance appraisal is used for :-

1. Identifying employees for salary increases , promotion , transfer and

layoff or termination of services.

2. Determining training need for further improvement in performance.

3. Motivating employees by indicating their performance levels.

4. Establishing a basis for research and reference for personnel decisions in

future.

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Goals of the Performance Appraisal System :-

For supervisors, the process of performance management is one of the most

important leadership responsibilities. The performance appraisal syatem has

three primary goals:-

1. To provide a formal means of constructive, open and honest com-

munication between the employees and his/her supervisor.

2. To enhance employee development through performance feedback and

through the identification of future professional development activities.

3. To measure and document job performance as a basis for making prom-

otion, compensation and other personnel management decision.

Who Should Conduct the Appraisal?

The individual (superviser) who has the authority to make hiring recommendations

and to assign work to the employee should be the person responsible for

completing the appraisal. Supervsors who donot directly observe or otherwise

measure the outcomes of a given employees job performance should seek input

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from individuals who do directly observe the employee (eg.A crew leader, group

leader, area co-ordinator, and other workers). This may be the case, especially in

larger departments/units. Its the responsibility of department/unit heads and

supervisors to prepare written performance appraisal and to conduct timely

appraisal meetings. If a given supervisor should delay or neglect to conduct an

appraisal, the affected employee is encouraged to initiate such or may contact the

Department of Human resources for assistance.

The Performance Appraisal Process

The figure outlines the performance appraisal process. Each step in the process is

crucial and is arranged logically.

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Objectives of


Establish Job

Expectations

Design an

Appraisal Program

Appraise

Performance

Performance

Interview

Use Appraisal Data for

Appropriate Purpose


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Performance Standard and Goals

Performance standards and goals are the basis from which employee performance

is measured. The written performance appraisal should reflect how well the

employee performed against defined job responsibilities and previously established

goals and objectives. Effective goals and objectives must be specified, measurable

and reasonable and have a time frame.

Specific: - Objective and precise language is essential when developing

performance goals and objectives. Supervisors should use terms and

descriptions, which have the same meaning to the supervisor and the

employee. Detailed points rather tan vague descriptions are important for

understanding and documentation.

Measurable: - Goals and objectives should be written so that

accomplishment or degrees of accomplishment can be objectively

measured.

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Reasonable: - Goals and objectives which are too high or rigid may

actually inhibited an employee`s performance. Individuals may become

discouraged and give up if perceive expectations to be unattainable. Goals

and objectives should be reasonable given time frames, circumstances and

departmental/unit expectations.

Time frame: - A specific period of time for accomplishment should be

identified with each goals and objectives.

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METHODS OF PERFORMANCE APPRAISAL:-

Terms used to describe the various type of rating systems as well as a definition or

performance appraisal is as follows:

Behavioral Anchored Rating Scales :- The terms used to decribe a

performance rating that focused on specific behaviors or sets as

indicators of effective or ineffective performance , rather than on

broadly stated adjectives such as average, above average, or below

average. Other variations were :

1. Behavioral observations scale.

2. Behavioral expectations scale.

3. Numerically anchored ating scales.

Checklists:- The term used to define a set of adjectives or descriptive

statements. If the rather believed the emplotee possessed a trait listed,

the rather checked the item , if not the ather left the item blank, rating

score from the checklist equaled the number of checks.

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Critical Incident Technique :- The term used to describe a method of

performance appraisal that made list of statements of very effective and

very ineffective behavior foremploye. The lists have been combined into

categories , which vary with job .Once the categories had been developed

and statements of effective and ineffective behavior had been provided

,the evaluator prepared a log for each employee. Doring the evaluation

period , the evaluator reco- rded examples of critical behaviors in each of

the categories and the log has been used to evaluate the employee at the

end of the evaluation period.

Forced Choice Method : - This appraisal method has been developed to

prevent evaluators from rating employees to high. Using this method, the

evaluator has to select from a set of descriptive statements that apply to

the employee. The statements have been weighted and summed to at,

effectiveness index.

Forced Distribution:- The term used to describe an appraisal system

similar to grading on a curve. The evaluator had been asked to rate

employees in some fixed distribution of categories. One way to do this has

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been to type the name of each employee on a card and ask the evaluators

so sort the cards into piles corresponding to rating.

Graphic Rating Scale:- The term used to define the oldest and most

widely used performance appraisal method. The evaluators are given a

graph and asked to rate the employees on each of the characteristics can

vary one to one hundred. The rating can be a matrix of boxes for the

evaluator to check off or a bar graph wh-ere the evaluator checked off a

loca- tion relative to the evaluators rating.

Narrative or Essay Evaluation:- This appraisal method asked the

evaluator to describe strengths and weakness of an emplyee`s behavior.

Some companies still use this method exclu- sively , whereas in others ,

the method has been combined with the graphic rating scale.

Management by Objective:- The management by objectives perfo-

rmance appraisal method has the supervisor and employee get together to

set objectives in quantifilable terms.

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Paired Comparison :- The term used to describe an appraisal method for

taking employee. First the names of the employees to be evaluated have

been placed on separated sheets in a predetermined order , so that each

person has been compared with all other employees to be evaluated. The

evaluator then checks the person he or she felt had been the better of the

two on the criterion for each comparison. Typically the criterion has been

the employees over all ability to do the present job. The number of tines a

person has been preferred is tallied and the tally developed is index of the

number being evaluated.

Ranking :- The term ranking has been used to describe an altern- ative

method of performance appraisal where the supervisor has been asked to

order his or her employees in terms of performance from highest to

lowest.

Weighted Checklist :- The term used to describe a performance

appraisal method where supervisors or personnel specialists fam- iliar

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with the jobs being evaluated prepared a large list of descriptive

statements about effective and ineffective behavior on jobs.

Purpose of Traditional Performance Appraisal

Performance appraisal for evaluation using the traditional approach has served the

following purposes:-

Promotion , separation and transfer decision.

Feedback to the employee regarding how the organization viewed the

employee`s performance.

Evaluations of relative contributions made by individuals and entire

departments in achieving higher level organization goals.

Criteria for evaluating the effectiveness of selection and placement

decisions including the relevance information used n the decision with in the

organization.

Reward decisions , including merit increases , promotions and other rewards.

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Ascertaining and diagnosing training and development decisions

Criteria for evaluating the success of training and development decisions.

Information upon which work scheduling plans, budgeting and human

resources planning can be used.

Two serious flaws in the traditional approach in the performance appraisal exist.

The flaws are:

Organizational performance appraisal is typically primarily concerned with the

past rather than being forward looking through the use of setting objectives or

goals.

Performance appraisal is usually tied to the employees` salary reviewed. Dealing

with salary generally overwhelmed and block creative, meaningful or

comprehensive consideration of performance goals.

Developmental Performance Approach Purposes

The developmental approach to performance appraisal has been related to

employees as individuals. This approach has been concerned with the use of

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performance appraisal as a contributor to employee motivation, development and

human resources planning. The development approach contained all of the

traditional overall organizational performance appraisal purposes and the following

additional purposes:

Provided employees the opportunity to formally indicate the direction and

level of the employee`s ambition.

Show organizational interest it employee development ,which was cited to

help the enterprise retain ambitious , capable employees instead of losing the

employees to competitors.

Provided a structure for communications between employees and

management to help clarify expectations of the employee by management

and the employee.

Provide satisfaction and encouragement to the employee who has been

trying to perform well.

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Expectation from a Manager doing a Performance Appraisal

The following is typically expected from company manager when doing

performance appraisal:

Translate organizational goals into individual job objective.

Communicate management`s expectations regarding employee performance.

Provide feedback to employee about job performance in light of

management`s objectives.

Coach the employee on how to achieve job objectives/requirements.

Diagnose the employee`s strengths and weaknesses.

Determine what kind of development activities might help the employee

better utilize his or her skills improve performance on the current job.

Problem of criterion

A brand definition of criterion is that which is to be predicated. This definition

refers to the evaluative standards, which measures are easy if the job is clearly

defined but difficult if it is broad. At lower level of an organization there are

specific jobs and certain tangible and objective standards of performance can be

identified. Further up in the hierarchy, jobs become more complex and clear-cut,

tangible standards of performance are difficult to specify.

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Irrespective of the level by and large most companies use eleven performance

measures:

1. Quantity of work

2. Quality of work

3. Waste and brokerage

4. Money earned

5. Job knowledge

6. Job tenure

7. Absenteeism

8. Rate of advancement

9. Self judgment

10.Judgment by peers

11.Judgment by supervisors.

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Instructions for using performance appraisal system

Purpose:

The performance evaluation system is used to evaluate employees past work

performance, develop a work plan for the next review period and determine what

resources are needed for improving performance to become more effective.

Evaluations also develop employees potential through training and counseling.

The process is designed to be interactive between the employee and the superv-isor

with the following objectives in mind:

Use to recognize and reward employees for positive work behavior. Use

the results as a basis for appropriate personnel actions.

Encourage employees to continuously improve, support team

endeavors, develop professionally and perform at their maximum

potential.

Communicate and clarify the goals and objectives of the division,

department and the City in relation to the employees` work expectation

Involve employees in improving their effectiveness and performance.

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Provide an employee improvement plan where performance is rated

below standard.

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Performance Evaluation System :

The performance evaluation form is used for all performance reviews. This

includes probationary evaluations ( expect Police and Fire have their own

process), annual evaluation and special evaluation for reg -ular full time and

regular part time employees. The evaluation periods are generally twelve months,

expect for special evaluations, which may be for shorter periods of time. Merit

step increases are conducted on the employees` anniversary date (assuming

satisfactory performance) and not during the annual performance review.

Supervisor Responsibility :

Each department will conduct employee evaluations for all employees in the

department during the same month. Human resources will notify department heads

30 days prior to when evaluations are due. Each supervisor completing the

performance evaluation should review the following instructions, the rating criteria

definitions and familiarize him or herself with the procedure prior to competing the

evaluations. Upon completion of the evaluation form by the supervisor (rater) and

the reviewer (one level above the rater), then the rater will meet with the completed

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form for signatures. Supervisors should provide written comments on the

evaluation form for each performance criteria and list specific examples. Use

N/A if the rating criteria are not applicable. The supervisor is responsible for

completing the evaluation process at the beginning of the rating period and again at

6 month to monitor progress and adjust time lines if necessary. At that time, a new

12-month work plan is established with the employee and the process repeats itself.

Supervisors shall coordinate the discussion of performance evaluations with

employees in a manner that allows privacy. The supervisor shall have the

employee to complete the Self Performance Evaluation Form as a discussion tool.

Forms:

There are two performance evaluation forms which you will always use:

The actual performance evaluation form which includes the cover

page called the Summary Worksheet.

The Employee Self-Evaluation form.

There are two other forms you may need to use:

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The Performance Improvement Plan form (used when a rating is #1

Unacceptable or #2 Improvement needed), and attached to

Performance Evaluation form.

Performance Goals form (used by department to follow up mid-year

on goals set in evaluation), optional and not returned to Human

Resources.

Rating Process And Criteria :

5 = outstanding performance

4 = exceed expectations

3 = meet expectations

2 = needs improvement

1 = unacceptable

A rating of 1 or 2 requires the supervisor to complete a Performance Improvement

Plan form to document the problem, including specific examples, guidance on

improvement, a specific timetable for improvement, and a follow up evaluation to

monitor progress.

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Signature On The Evaluation Form

After the supervisor completes the performance evaluation with the

employee, both the supervisor and employee sign the form. The next level of

review is the Reviewer, one level above the supervisor performing the

evaluation (the rater). Depending on the Department structure, the reviewer

could be the Department head, Deputy Director, or a Division Manager. The

mid-year review will only involve the employee and his/her supervisor with

their signatures and the mid-year process does not go into the personnel file.

Evaluation When A New Supervisor is Appointed :

If the employee has an evaluation due and supervisor is appointed, the new

supervisor likely has not had the opportunity to properly evaluate the

employee`s performance. In this instant the new supervisor will evaluate the

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employee after 90 days. If possible, the supervisor that is leaving will do a

close out evaluation for his/her employees prior to leaving.

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Steps to complete the annual performance evaluation procedure:

Step 1: Notice to department heads: human resources will notify department

heads 30 days prior to when performance evaluations are due for full time and part

time regular employees in their department. Managers/supervisors have 30 days to

complete the performance evaluations, obtain signature and provide the original

the human resources office for filling in the employees personnel file .The

supervisor shall also retain a computer copy/file copy for the midyear review

process. Human resources will remind supervisors to schedule probationary

evaluations on their calendar.

Step 2: Blank performance evaluation forms: managers/supervisors obtain the

performance evaluation forms.

Step3: Review job description; review the employees job description to see if any

changes are necessary. If there are increased responsibilities /scope of work or a

change in qualifications forward your edits to human resources for review. Minor

differences in workload or added assignment that are industry or technology

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changes do not require a change to the job description. (Individual employees do

not amend their job descriptions; this task is for the manager)

Step 4: Self evaluation form: provide a copy of the self evaluation form to the

employee.

If the employee does not want to complete the form, he/she shall check the box

and sign at the bottom of the form and return it to the supervisors . This completed

form is used as a tool for discussion while the supervisors is completing the

employees evaluation .

Step 5: Complete the performance evaluation rating forms: The managers

/supervisors complete each section in performance evaluation forms (page 2-

3plus). If a section does not apply note N/A for not applicable. Written comments

are required and should include examples that support the rating the specific job

element. Section 1to 3(Technical knowlwdge, customer service and

quality/quantity of work) apply to all positions. For section 4(Attendance), the

supervisors should review the employees attendance record, scheduled time away

from the job and use of breaks. Section5 (Safety and Risk management) applies to

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all jobs and should include notice of any accident, injuries, equipments usage or

other safety related issues. Section6 is only for department heads, managers,

supervisors and lead workers. Next, complete the section work plan for the next

rating period completion date. This list achievable goals and projects as well as

areas to improve upon. Next, complete the training and development section. The

raters the complete the summary worksheet cover pages for the evaluation form.

This is done last and is and over all rating considering all the rating sectors.

The performance goal forms(optional based on department head discussion is a

departmental tool used during the midyear review o monitor progress, completion

date or makes comments concerning the goals. keep goals to a realistic number (3

to 5) and ones that are achievable we all have a tendency to put down more goals

that we can reasonably achieve.

Also some employees in entry level job may have only 1 or 2 goals or a training

course to complete during the review period the supervisor should used their

judgment and discussion their employees to arrive at goals for the work

Plan .

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Step 6: Unacceptable or Improvement Needed Rating: If y rate an employee

with a 1 Unacceptable or 2 Improvement needed, you must complete the

performance improvement plan form. Have this completed form reviewed by the

department head and Human Resources prior to presenting it to the employee. This

form is used to document performance and behavior problems that need corrective

action. Documentation is critical for this type of rating.

Note in the event the employee does not improve, the documentation is important

for corrective action. The notice of Improvement Needed or unacceptable

rating must include:

The problem areas of performance that are determined to be unacceptable.

Identify performance standards that must be achieved to meet acceptable

standards.

Provide a reasonable period of time demonstrate improved performance.

Provide assistance to help them achieve the performance standards (training,

counseling and coaching, closer supervision, feedback).

Communicate with employee of the consequences if their performance does not

improve and provide a deadline, such as 30-90 days for a follow up review.

However, this time line does not preclude immediate disciplinary action at any

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time by department head if the employees` performance worsens during the

rating period.

A rating of #1 shall be reviewed and approved by the department head before

being communicated to the employee.

Step 7: Mid-year Review: Mid-point through the 12-month rating period, the

manager or supervisor will meet with the employee to review his/her progress.

This does not require any new information to be prepared, merely review their

performance, goals and deadlines with the employee. At this step, you may

adjust the deadlines as necessary.

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Standard of Performance

Standards of performance are written statement describing how well a job should

be performed. Performance standards are developed collaboratively with

employees, whenever possible and explained to new employees during the first

month on the job.

Job Description & Essential Functions

Strategic Plan & Annual Goals

Standards of Performance

Observation &Feedback


Performance Development

The performance standard provides a benchmark against which to evaluate work

performance. While the job description describes the essential functions and the

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tasks to be done, the performance standard defines how well each function or task

must be performed in order to meet or exceed expectations. The University also

establishes general criteria for evaluating work performance.

Standards of performance are usually:

Developed in collaboration with the employees who do the tasks or

functions.

Explained to new employees within the first month on the job.

The rating describes the level of performance of the individual employee compared

to a job description and standard of performance.

E =Exceptional : Performance well exceeds expectations and is consistently

outstanding.

A = Above Expectation: Performance is consistently beyond expectations.

S = Solid Performance: Performance consistently fulfills expectations and at times

exceeds them.

I = Improvement Needed: Performance does not consistently meet expectation.

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U = Unsatisfactory: Performance is consistently below expectations. Deficiencies

should be addressed as noted in the performance appraisal.

As performance manager, you will use these criteria to rate the employees`

performance. At the beginning of the appraisal period, review these ratings and the

performance standards for each position, which reports to you so that you can

fairly evaluate the employees` performance.

Performance Standards a answer the question, How will the employees and

the performance manager know when the employee is meeting or exceeding

expectation for his or her position?

Guidelines for Performance Standards

Keep in mind the following guidelines when writing your performance

standards:

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Performance standards should be related to the employees` assigned work

and job requirements.

Your reporting system should be adequate to measure and report any

quantitative data you list.

Quantifiable measures may not apply to all functions. Describe in clear and

specific terms the characteristics of performance quality that are verifiable

and that would meet or exceed expectations.

Accomplishment of organizational objectives should be included where

appropriate, such as cost-control, improved efficiency, productivity, project

completion, process redesign or public service.

Checking Your Standards

After you have written your performance standards, check them against the

questions in the following list:

Are the standards realistic? Standards should be attainable and consistent

with what is necessary to get the job done. Standards for performance, which

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meets expectations, represent the minimum acceptable level of performance

for all employees in that position.

Are standards specific? Standards should tell an employee exactly which

specific action and results he or she is expected to accomplish.

Are the standards based on measurable data, observation, or verifiable

information? Performance can be measured in terms of timeliness, cost,

quality and quantity.

Are the standards consistent with organizational goals? Standards link

individual (and team) performance to organizational goals and should be

consistent with these goals.

Are the standards challenging? Standards may describe performance that

exceeds expectations. Recognizing performance that is above expectation or

outstanding is crucial to motivating employee.

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Are the standards clear and understandable? The employees whose work is

to be evaluated on the basis of the standards should understand them.

Standards should use the language of the job.

Are the standards dynamic? As organizational goals, technologies,

operations or experiences change, standards should evolve.

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Use of Books and Software for Performance Appraisals

There are number of low cost paperbacks that can b handed out to the managerial

staff to help them with their appraisals.

Since the advent o the use of computers, a number of educational organizations are

now using Performance Appraisal software.

Performance now Enterprise is a software tool for logging events, tracking goals,

providing effective feedback and writing employee reviews that maximize the

potential of your team. Flexible enough to adapt to your present review system,

Performance now helps you become a better manager and get the best from your

employees. For a little more upscale package Performance Impact Workplace is

easy to use to set goals for employees, but are having trouble following up on those

goals.

Other software such as The Administrative Observer for school systems is one of

the more configurable stand-alone database package, with an intuitive graphic

interface, geared towards the business environment is MINDSOLVE (MVP). MVP

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is designed as an enterprise level performance management software, incorporating

appraisal, development resources, 360 degree feedback, performance logging, etc.

While the use of configurable software based tools are certainty making life easier,

the use of such tools are much more valuable.

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Chapter 4.

Introduction of Insurance

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INTRODUCTION

The Insurance sector inIndiagoverned by Insurance Act, 1938, the Life Insurance

Corporation Act, 1956 and General Insurance Business (Nationalisation) Act,

1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and

other related Acts. With such a large population and the untapped market area of

this population Insurance happens to be a very big opportunity inIndia. Today it

stands as a business growing at the rate of 15-20 per cent annually. Together with

banking services, it adds about 7 per cent to the countrys GDP .In spite of all this

growth the statistics of the penetration of the insurance in the country is very poor.

Nearly 80% of Indian populations are without Life insurance cover and the Health

insurance. This is an indicator that growth potential for the insurance sector is

immense inIndia. It was due to this immense growth that the regulations were

introduced in the insurance sector and in continuation MalhotraCommitteewas

constituted by the government in 1993 to examine the various aspects of the

industry. The key element of the reform process was Participation of overseas

insurance companies with 26% capital. Creating a more efficient and competitive

financial system suitable for the requirements of the economy was the main idea

behind this reform.

Since then the insurance industry has gone through many sea changes .The

competition LIC started facing from these companies were threatening to the

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existence of LIC .since the liberalization of the industry the insurance industry has

never looked back and today stand as the one of the most competitive and

exploring industry in India. The entry of the private players and the increased use

of the new distribution are in the limelight today. The use of new distribution

techniques and the IT tools has increased the scope of the industry in the longer

run.

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HISTORY OF INSURANCE SECTOR

The business of life insurance in India in its existing form started in India in the

year 1818 with the establishment of the Oriental Life Insurance Company

in Calcutta. Some of the important milestones in the life insurance business

in India are given in the table 1.

Table 1: milestones in the life insurance business in India

Year Milestones in the life insurance business in India

1912 The Indian Life Assurance Companies Act enacted as the first

statute to regulate the life insurance business

1928 The Indian Insurance Companies Act enacted to enable the

government to collect statistical information about both life and

non-life insurance businesses

1938 Earlier legislation consolidated and amended to by the Insurance

Act with the objective of protecting the interests of the insuring

public.

1956 245 Indian and foreign insurers and provident societies taken

over by the central government and nationalised. LIC formed by

an Act of Parliament, viz. LIC Act, 1956, with a capital

contribution of Rs. 5 crore from the Government of India.

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The General insurance business in India, on the other hand, can trace its roots to

the Triton Insurance Company Ltd., the first general insurance company

established in the year 1850 in Calcutta by the British. Some of the important

milestones in the general insurance business in India are given in the table 2.

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Table 2: milestones in the general insurance business in India

Year Milestones in the general insurance business in India

1907 The Indian Mercantile Insurance Ltd. set up, the first company to

transact all classes of general insurance business

1957 General Insurance Council, a wing of the Insurance Association

of India, frames a code of conduct for ensuring fair conduct and

sound business practices

1968 The Insurance Act amended to regulate investments and set

minimum solvency margins and the Tariff Advisory Committee

set up.

1972 The General Insurance Business (Nationalisation) Act, 1972

nationalised the general insurance business in India with effect

from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz.

the National Insurance Company Ltd., the New India Assurance

Company Ltd., the Oriental Insurance Company Ltd. and the

United India Insurance Company Ltd. GIC incorporated as a

company.

Indian Insurance Market History

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Insurance has a long history in India. Life Insurance in its current form was

introduced in 1818 when Oriental Life Insurance Company began its operations

in India. General Insurance was however a comparatively late entrant in 1850

when Triton Insurance company set up its base in Kolkata. History of Insurance

in India can be broadly bifurcated into three eras: a) Pre Nationalisation b)

Nationalisation and c) Post Nationalisation. Life Insurance was the first to be

nationalized in 1956. Life Insurance Corporation of India was formed by

consolidating the operations of various insurance companies. General Insurance

followed suit and was nationalized in 1973. General Insurance Corporation

of India was set up as the controlling body with New India, United India, National

and Oriental as its subsidiaries. The process of opening up the insurance sector was

initiated against the background of Economic Reform process which commenced

from 1991. For this purpose Malhotra Committee was formed during this year who

submitted their report in 1994 and Insurance Regulatory Development Act (IRDA)

was passed in 1999. Resultantly Indian Insurance was opened for private

companies and Private Insurance Company effectively started operations from

2001.

Insurance Market- Present:

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The insurance sector was opened up for private participation four years ago. For

years now, the private players are active in the liberalized environment. The

insurance market have witnessed dynamic changes which includes presence of a

fairly large number of insurers both life and non-life segment. Most of the private

insurance companies have formed joint venture partnering well recognized foreign

players across the globe.

There are now 29 insurance companies operating in the Indian market 14 private

life insurers, nine private non-life insurers and six public sector companies. With

many more joint ventures in the offing, the insurance industry in India today stands

at a crossroads as competition intensifies and companies prepare survival strategies

in a detariffed scenario.

There is pressure from both within the country and outside on the Government to

increase the foreign direct investment (FDI) limit from the current 26% to 49%,

which would help JV partners to bring in funds for expansion.

There are opportunities in the pensions sector where regulations are being framed.

Less than 10 % of Indians above the age of 60 receive pensions. The IRDA has

issued the first licence for a standalone health company in the country as many

more players wait to enter. The health insurance sector has tremendous growth

potential, and as it matures and new players enter, product innovation and

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enhancement will increase. The deepening of the health database over time will

also allow players to develop and price products for larger segments of society.

State Insurers Continue To DominateThere may be room for many more

players in a large underinsured market like India with a population of over one

billion. But the reality is that the intense competition in the last five years has made

it difficult for new entrants to keep pace with the leaders and thereby failing to

make any impact in the market.

Also as the private sector controls over 26.18% of the life insurance market and

over 26.53% of the non-life market, the public sector companies still call the shots.

The countrys largest life insurer, Life Insurance Corporation of India (LIC), had a

share of 74.82% in new business premium income in November 2005.

Similarly, the four public-sector non-life insurers New India Assurance, National

Insurance, Oriental Insurance and United India Insurance had a combined market

share of 73.47% as of October 2005. ICICI Prudential Life Insurance Company

continues to lead the private sector with a 7.26% market share in terms of fresh

premium, whereas ICICI Lombard General Insurance Company is the leader

among the private non-life players with a 8.11% market share. ICICI Lombard has

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focused on growing the market for general insurance products and increasing

penetration within existing customers through product innovation and distribution.

Reaching Out To CustomersNo doubt, the customer profile in the insurance

industry is changing with the introduction of large number of divergent

intermediaries such as brokers, corporate agents, and bancassurance.

The industry now deals with customers who know what they want and when, and

are more demanding in terms of better service and speedier responses. With the

industry all set to move to a detariffed regime by 2007, there will be considerable

improvement in customer service levels, product innovation and newer standards

of underwriting.

Intense Competition In a de-tariffed environment, competition will manifest itself

in prices, products, underwriting criteria, innovative sales methods and

creditworthiness. Insurance companies will vie with each other to capture market

share through better pricing and client segmentation.

The battle has so far been fought in the big urban cities, but in the next few years,

increased competition will drive insurers to rural and semi-urban markets.

Global Standards While the world is eyeing India for growth and expansion,

Indian companies are becoming increasingly world class. Take the case of LIC,

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which has set its sight on becoming a major global player following a Rs280-crore

investment from the Indian government. The company now operates

in Mauritius, Fiji, the UK, Sri Lanka, Nepal and will soon start operations in Saudi

Arabia. It also plans to venture into the African and Asia-Pacific regions in 2006.

The year 2005 was a testing phase for the general insurance industry with a series

of catastrophes hitting the Indian sub-continent.

However, with robust reinsurance programmes in place, insurers have successfully

managed to tide over the crisis without any adverse impact on their balance sheets.

With life insurance premiums being just 2.5% of GDP and general insurance

premiums being 0.65% of GDP, the opportunities in the Indian market place is

immense. The next five years will be challenging but those that can build scale and

market share will survive and prosper.

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Chapter 6.

Research Methodology

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a) Statement of the Problem

Every business organization large or small spend huge amount of money on Human

Resource. It is necessary therefore to find out how they are performing in order to

design their future of the organization. It may be to develop the employees or to

correct the employees or to utilize employees strength.

This study is directed towards probing Performance Appraisal system as tool for

employees at BAJAJ ALLIANZ LIFE INSURANCE.

b) Types of Research-

There is social research in a HR Survey with particular reference to Performance

Appraisal as a System for employees at BAJAJ ALLIANZ LIFE INSURANCE

Sample Design:

It is random sampling techniques where the samples were designed based on

the nature of work, qualification, experience, etc.

Sample Size:

20 Employees Respondents

Tool for collection of Data:

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Structured questionnaire is used to collect the data. Copy of questionnaire is

placed at the Annexure of the project report.

Method of Collecting Data:

The questionnaires were floated to respondents through Researcher where

the data was collected and returned by HR Unit.

Method of Analysis:

1. The collected data were tabulated

2. Percentage of respond was worked out

3. Analysis is based on percentage frequency

4. Weight age is given to high percentage in response factor

5. Evaluation is made based on the analysis and the presumptions

inherences are used, where every data is ambiguous. Definitive

evaluation is made every data is clear.

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Chapter 7.

Data Analysis

&

Interpretation

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Findings, Analysis and Discussion-

Present Appraisal System Feedback

In this system, employees and managers set expectations and prepare plans for

work and development at the beginning of the year. The key responsibilities and

results (KRRs) dimensions and behavioral expectations, and the criteria/standards

for the performance measurement are prescribed and clarified. Although they may

be expressed differently for different jobs, the basic areas of measurement for all

jobs are quality, quantity, cost and timeliness. To ensure that all employees receive

feedback for maintaining or improving productivity, two documented semi-annual

feedback sessions are required. The supervisor uses discretion to schedule informal

feedback based on individual employees needs.

Although a case study with a limited number of respondents cannot be widely

generalized, the results should be quite interesting to mangers who would like to

think critically and seek ways to improve performance appraisal systems in

organizations

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Part A: Personal Data

1. To carry out any Project Study personal data needs detailed analysis because

it is basic foundation to understand correct profile of respondent. This shows

their knowledge, mental status and maturity. Educational background to

understand the topic of the study so that they can be related age.

Age Group No. of Respondents Percentage

21-30 14 70

31-40 2 10

41-50 4 20Total 20 100

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From the above data indicates that 70% of respondents are of 21-30 age group,

10% of respondents are of 31-40 age group and 20% of respondents are of 41-50

age group.

Gender-

Gender No. of Respondents Percentage

Male 12 60

Female 8 40Total 20 100

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The above data indicates that 60% of respondents are male, rest 40% of

respondents are female.

Qualification-

Qualification No. of Respondents PercentageDiploma 2 10

Graduate 6 30

Post Graduate 12 60

Total 20 100

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In the above data, it is seen that 10% of respondents are diploma in qualifications,

30% of respondents are graduates and rest 60% of respondents are post graduate.

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Designation-

Designation No. of Respondents Percentage

Manager 4 20Officer 10 50

Junior Officer 4 20

VP 2 10

Total 20 100

From the above data, it is seen that 20% of respondents are Managerial post, 50%

of respondents are at officer post, 20% of respondents are junior officer and 10%

of respondents are VP in post.

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Part B: Research Data

1. Is the Performance Appraisal process user friendly?

a. Yes b. No

S.No. Options No. of

Respondents

Percentage

1 Yes 16 80

2 No 4 20Total 20 100

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Respondents and Responses-

80% of the respondents are agreed to the above statement

It is user-friendly and easily accessible within the organization. It also

provides a consolidated view.

It captures an individuals strengths, improvement areas and also captures

training courses recommended.

It gives an opportunity to the employee to accept or decline.

It is very flexible.

20% of the respondents are disagreed to the statement

It is a very easier tool, where employee can fill in short time.

As an employee need to know what is required of them in order to

work effectively by this.

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2. Is Performance Appraisal conducted on time?

a. Yes b. No


Respondents

Percentage

1 Yes 12 60

2 No 8 40

Total 20 100

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Respondents & Responses-

60% of the respondents agreed to the above statement

Performance Appraisal process will start on time.

There is a fixed schedule to meet listed in detail at the beginning of the

process.

Process will be conducted as per the appraisal period.

40% of the respondents disagreed to the statement

Process end will take long time and unintentionally however measuring

quality

issues do cause delays.

Process Cycle should be reduced because there is always delay due to the

respective owners of the employee.

The steps involved in the process are very long as a result.

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3. Does Performance Appraisal process assess fairly?

a. Yes b. No


Respondents

Percentage

1 Yes 16 80

2 No 4 20

Total 20 100

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80% of the respondents agreed to above statement

The process assessment is fair and justified with business units.

It is objective process.

Measuring an individual is fair.

The metrics are adequate.


Across Business units does not yield right results.

There are some issues with performing employees not getting proper

result of the appraisal.

360 feedback systems should be there.

There is an element of subjectivity. The presence of Appraiser and

reviewer is aimed at eliminating the subjectivity.

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4. Is Performance Appraisal process simple to understand?

a. Yes b. No


Respondents

Percentage

1 Yes 17 85

2 No 3 15

Total 20 100

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It is simple to understand and follow pre-process.

It clears to express as individual his strength and capacity.

It gives an opportunity to show case his achievement.

It helps to understand the required capacity to meet requirements.

10% of the respondents disagreed to the statements

A Performance Appraisal tool should be kept as simple as possible while

meeting objectives.

A Performance Appraisal tools should be based on assessment of work

quantity, quality, and knowledge of job but not personality.

Process cycle time has to be reduced.

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5. Do you receive an orientation on how to conduct appraisal process?

a. Yes b. No


Respondents

Percentage

1 Yes 12 60

2 No 8 40

Total 20 100

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Detailed orientation is given to all levels at the beginning of the process.

Various training programs are available and discussed with superiors.

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Sometimes process will be failed due to some internal problems after

getting orientated on the Performance Appraisal system.

6. How much time is spent in preparing for feedback session?

a- 1 hour. b- 2 hour


Respondents

Percentage

1 1 hour 8 40

2 2 hour 12 60

Total 20 100

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40% of the respondents agreed to 1 hour statement

More time will be spent if one employee worked under different

managers for different assignments.

It is necessary to know the earlier managers feedback on the employee

to assess properly.

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In the Performance Appraisal system no records/data are available of

confirmation appraisal and project end appraisal.

60% of the respondents agreed to 2 hours statement

Approximately 2 hours, 1 hour for collecting feedback and

brainstorming and 1 hour for filling Review.

1 hour need to have things documented on how an employee has been

appraised.

There different process and have their strengths or improvement plans

throughout the year.

Feedback session involved revision of individuals accomplishments

during the appraisal period. His/her strengths, improvement areas and

training & development.

7. In your opinion how is overall Performance Appraisal system in

BAJAJ ALLIANZ LIFE INSURANCE?

a. Excellent b- Good c- Average d- Poor


Respondents

Percentage

1 Excellent 10 50

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2 Good 6 30

3 Average 4 20

4 Poor - -

Total 20 100

The above data predicts that the present appraisal system status in the

company where 50% of the employees responded to be excellent, 30%

respondent to be good, and 20% responded as average i.e. just satisfied.

Thus the majority of respondents have viewed their opinion that the present

appraisal system is good.

8. a) Are you satisfied with the current Appraisal system?

a. Yes b. No

S.No. Options No. of Percentage

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Respondents

1 Yes 14 70

2 No 6 30

Total 20 100



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It is simple to understand and follow pre process.

It is clear to express as individual his strength and capacity.


It helps us to understand the required capacity to meet requirements.


Suggested by some managers to have half yearly appraisal system.

Promotion, salary revisions can be dealt during annual appraisal.

Half yearly appraisal will help in motivating, keeping employees known

of peer strength and improvement areas.

Confirmation appraisal and project end appraisal process needs to be

automated.

In the process of performance appraisal cross business unit appraisal

process should be smoothened.

Performance Appraisal should be subject to regular evaluation and

review.

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8. b) If not then what are the areas need to be improved?

a. Time b. Process


Respondents

Percentage

1 Time 7 35

2 Process 13 65

Total 20 100

The above data predicts that 35% of the respondent need to change the

duration of PA system and rest of the 13 respondents i.e. 65% need to change

the process of performance appraisal.

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9. Do you feel any difficulty in handling them?

a. Yes b. No


Respondents

Percentage

1 Yes 4 20

2 No 16 80

Total 20 100

The above data indicates that 80% of the respondents feels no difficulty while

handling performance appraisal system while the rest of the 20% of the

respondent feels little difficulty.

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10. What other process can be included making the appraisal process much better?

a. MBO b. Critical Incident method c. Web based appraisal system


Respondents

Percentage

1 MBO 8 40

2 Critical Incident

Method

4 20

3 Web based

appraisal system

8 40

Total 20 100

The above data indicates that equal percentage of respondent need to add

MBO as well as Web based appraisal system in their organization i.e. 40%

and the rest 20% of other needs to include Critical incident Method.

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Present Appraisal System Satisfaction Level-

Particulars Respondents Percentage

Good 12 60Satisfactory 6 30

Poor 2 10

Total 20 100

The above data indicates the present appraisal system status in the company

where 60% of the employees responded to good, 30% responded to

satisfactory i.e. just satisfied and the remaining 10% are not satisfied and who

have not responded as poor.

Thus, the majority of the respondents have viewed their opinion that the

present appraisal system is good.

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Efficiency of the present appraisal system in employee development-

Particulars Respondents PercentageYes 16 80

No 4 20

Total 20 100

The above data shows that 80% respondents are accepting that Performance

Appraisal has aimed at development of the employee, and only 20% of them

disagreed to the present system.

Hence, most of the respondents are agree that Performance Appraisal is

aiming to the career development of the employee.

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Present Appraisal system in setting work targets-

Particulars Respondents PercentageYes 14 70

No 6 30

Total 20 100

The above data reveals that possibility of setting targets for the different jobs

they do under different department, 70% respondents have said yes for the

job they do. 30% respondents have said no for the qualitative and creative

jobs they do.

Therefore, majority of respondents have agreed the possibility of setting work

targets.

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The target for the job they do even though every job needs certain degree of

creativity which depends upon the nature of job.

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Actions taken after Performance Appraisal-


Useful discussions 11 55No discussions 4 20

Only failure are

discussed

2 10

Genius Feedback is

given

3 15

Total 20 100

The above data shows actions taken after the Performance Appraisal by the

appraiser the management 55% respondents of them reported they take up

useful discussions on the evaluation and results, 4 of them i.e. 20% have

denied and says no discussion, 10% said only failures are discussed, no

discussion is made on achievement, 15% agreed that they get genius feedback

on evaluation.

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Thus, majority of respondents told they are useful discussions with appraiser

after performance appraisal.

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Availability of feedback in Performance Appraisal system-


Yes 17 85No 3 15

Total 20 100

The above data distributes whether the present appraisal system is used in

getting the feedback from the employees, 85% respondents told the present

appraisal system helps in giving the feedback from the employees and only

15% respondents told the existing appraisal system is not helping in getting

proper feedback from the employees.

Therefore, majority of the respondents are accepting that the present

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appraisal system help in getting feedback from the employees.

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Chapter 8.

List of Findings

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Key findings-

The following key findings are found while performing HR survey for

identifying the impact of Performance Appraisal (PA) system:

BAJAJ ALLIANZ LIFE INSURANCE follows two types of Appraisal

process - Graphic Rating Scales and Behaviorally Anchored Rating Scaling

(BARS) which is user-friendly and easily accessible within the organization.

Feedback is given to the employees about their performance.

Promotions schemes exist in the organization according to the

employees performance.

It captures an individuals strengths, improvement areas & also captures

training courses recommended.

Performance Appraisal process will start on time and process will be

conducted as per the appraisal period.

There is a fixed schedule to meet listed in detail at beginning of the process.

The process assessment is fair and justified with business units.

It is objective process, measuring an individual is fair but the metrics are

inadequate.

Across business units does not yield right results.

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There are some issues with performing employees not getting proper result

of the appraisal.

Process is clear to express as an individual his strengths and capacity.


It helps to understand the required capacity to meet requirements.

A Performance Appraisal system tools should be based on assessment of

work performance not personality.

A Performance Appraisal system tools should be kept as simple as possible

while meeting objectives.

Detailed orientation will be given at all level at beginning of the

performance

appraisal process.

Various training programs are available and discussed with superiors.

Sometimes process will be failed due to some internal problem after getting

orientated on the performance appraisal system.

Feedback session involved revisions of individuals accomplishments during

the appraisal period. His/her strengths, improvement areas and training and

development.

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More time will be spent if one employee worked under different managers

for assignments.

It is necessary to now the earlier managers feedback on the employee to

assess properly.

In Performance Appraisal includes Quantitative and qualitative measures.

It will clarify organizational goals and expectations.

It provides a mechanism for improving communication between workers and

superiors.

It will decide upon future work requirements and objectives.

By this employee can discuss ideas, comments and suggestions.

Develop an action plan for indentifying strategies which will make it

possible for the employees to achieve the objective discussed.

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Performance Appraisal should be developed and implemented in

consultation with employees and superiors.

Performance Appraisal should operate equitable throughout the

organization.

Promotions, salary revisions can be dealt during annual appraisal.

Group work and team work exist in an organization.

Majority of the executives give reasons for not completing their targets.

Review and reset of the task is not made uniformly.

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Chapter 9.

Conclusion

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Conclusions-

Most of the time Performance Appraisal (PA) for determining compensation

increases, training need identification and for promotions. The Performance

Appraisal has delinked itself from being an instrument of evaluating performance

in the organization. Application of performance and bringing about better

performance management practices that enables organization to improve their

performance and bring in a performance driven culture is the need of the hour

rather performance appraisal only.

No Doubt without the commitment of the top management it would just be very

difficult to bring this sort of change. This in fact calls for a cultural change where

in emphasis is not only given to the Outcome or the end result but also on the

process and effort made to achieve the result. While discussing of the process &

effort we need to focus on the leadership style, his approach of consulting others,

his ability to learn, his approach as a team member, his effort in planning his days

and week, and his overall orientation for subordinates development. All this really

calls for a different ball games wherein the concerned supervisors are able to

emphasize with his sub-ordinates and is really above to understand his emotional

world.

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In this era where every individual is competing with each other and where very

tight schedules are drawn without much scope for slippages, there is every

probability that conflicts are going to become a common affair. As such is has

become all the more important that a supervisor makes all out effort to understand

emotional world of the sub-ordinate in terms of his hindering and facilitating

factors in terms of achieving his goals, what help the person growth and his own

ambition in the next 3-4 years, what is happening on his family front.

All this shall only happen if the sub-ordinate is able to see value and a genuine

concern in all this. For this what can be done is that once in a month an effort can

be made by the supervisor to sit his sub-ordinate to sit with his sub-ordinate and

have a face to face interaction in a non threatening atmosphere. What I have

personally observed that it charges the motivation level of an individual

considerably and in fact the employee makes all out effort to achieve the

Organizational goals.

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Chapter 10.

Recommendations

Limitations

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Recommendations

Though the employees feels that the company is fair in its appraisal process

but still has lot to in terms of making the appraisal process effective so that it

results in enhanced employee satisfaction and helps in retaining key

employees of the company.

The project leaders are dissatisfied with the way responsibilities are

distributed. The company needs to works in this area and bring more clarity

in the definitions of roles and responsibilities.

The Management should design training and development programs, career

plans for their employees on the basis of skills, knowledge needs.

Appreciate employees on the basis of employees work performance by

Promotion or increment in the salaries.

The performance culture of the company is another area where needs to be

done to improve the training regimen so that involvement of the employees

is enhanced which finally would build the morale and productivity would be

enhanced.

Employees have doubts about the rewards and feel that the system is not too

transparent. This in the long run unattended would reduce the morale and

may lead to attrition.

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Limitation of the Study-

Any research study will be restricted in scope by certain inherent limitations that

are participated by the choice of the research design. This study has the following

limitations:

Even though the survey was conducted for the employee performance

review the study does not match with the entire population in the company.

Because of time constraints, the sample size is restricted to 20, which may

not reflect the opinion of the entire population in the company.

Since study was restricted to samples. Sample may behave or give different

opinions at different times because of their psychological temperament. This

will affect the study.

Data could be collected from only 20 respondents as they were busy and

could not respond so well to the questionnaires.

Most of the organization hesitates to give confidential HR information

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which is needed for the study like expectation in salary, periodical

incremental percentage.

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QUESTIONAIRE

Part A:

Name of the Respondent : ______________________

Age : ______________________

Gender : ______________________

Qualification : ______________________

Designation : _______________________

Part B:

1. Is the Performance Appraisal process user friendly?

a. Yes b. No

2. Is Performance Appraisal conducted on time?

a. Yes b. No

3. Does Performance Appraisal process assess fairly?

a. Yes b. No

4. Is Performance Appraisal process is simple to understand?

a. Yes b. No

5. Do you receive an orientation on how to conduct appraisal process?

a. Yes b. No

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6. How much time is spent in preparing for feedback session?

a- 1 hour b- 2 hour

7. In your opinion how is overall performance appraisal system in

BAJAJ ALLIANZ LIFE INSURANCE?

a. Excellent b- Good c- Average d- Poor

8. a) Are you satisfied with the current appraisal system?

a. Yes b. No

b) If not then what are the areas need to be improved?

a. Time b. Process

9. Do you feel any difficulty in handling them?

a. Yes b. No

10. What other process can be included making the appraisal process much

better?

a. MBO b. Critical Incident Method c. Web based Method.

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Performance appraisal is very important for any company. It helps to make the

companies employee work better and show good result for the company too. This

helps the company to turn out to be profit making company.

As in BAJAJ ALLIANZ LIFE INSURANCE we are using the Rating scales or

Fair comparison method mostly to grade the performance of the employees. The

method used by the company is very fair and it is very easy to be adopted by the

personnels. This method is very convenient to be used. But the drawback

associated with the method is that it has now became an out dated method to be

used because there are fifty percent chances of biasness to occur for a particular

employee by the raters.

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Bibliography

1. V S P Rao, Human Resource Management, Anurag Jain for Excel Books,

New Delhi.

2. Dr. K Ashwathappa, Human Resource & Personal management, TATA

McGraw-Hill Publishing Company limited, New Delhi.

3. Prem Chadha, Performance Management

4. Google Engine Search

5. www.appraisals.naukrihub.com

6. www.performance-appraisal.com

7. Wikipedia -An Encyclopedia

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Documents

Performance Appraisal Bajaj Allianz