Performance Appraisal in Bsnl

1

ABSTRACT

The Bharat Sanchar Nigam Limited located in GM Office Bibikulam,

Madurai. BSNL is India’s 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.

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1. INTRODUCTION

1.1 RESEARCH BACKGROUND

A “performance appraisal” is a process of evaluating an employee’s 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 employee’s 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.

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(vi) To plan career development, human resources planning based on

potentialities.

1.2 COMPANY PROFILE

Overview of BSNL

BSNL is India’s 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.

BSNL’s 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 19 th

century. The history of BSNL is linked with the beginning of Telecom in India. In 19 th

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 Government’s 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:-

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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 IN services like Tele-

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.

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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 BSNL’s 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.

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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. BSNL’s 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

Telco’s 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 Industry’s 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.

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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(café’s) 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.

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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

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o VIDEO CONFERENCING

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 India’s 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.

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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.

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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.

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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.

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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. HSM’s 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.

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2.2.4 Fourth Literature

Project name: HR Competency Project

Author: Brain Foster, Human Resource Administrator

Abstract:

In accordance with Governor Freudenthal’s 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 employee’s 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.

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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 Survey

Sample Unit : Employees from Bharat Sanchar Nigam Limited

Sample Size : The sample size was limited to 100.

Sampling Plan : 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.

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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

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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.

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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 data’s 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.

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3.3 DIAGRAMMATIC REPRESENTATAION

TABLE 3.3.1

GENDER OF THE EMPLOYEES:

S. No Gender No. of Respondents Percentage (%)

1 Female 37 37.0

2 Male 63 63.0

TOTAL 100 100.0

FIGURE 3.3.1

37%

63%

FemaleMale

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.

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TABLE 3.3.2

AGE LEVEL OF THE EMPLOYEES

S. No Age Level No. of Respondents Percentage (%)

1 Below 35 years 35 35.0

2 36-45 years 34 34.0

3 Above 45 years 30 30.0

Total 100 100.0

FIGURE 3.3.2

Below 35years 36-45 years Above 45 years27

28

29

30

31

32

33

34

35

Chart Title

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 Designation No. of Respondents Percentage (%)

1 Clerk 20 20.0

2 Officer 21 21.0

3 Operator 16 16.0

4 Supervisor 28 28.0

5 Engineer 14 14.0

6 Manager 1 1.0

Total 100 100.0

FIGURE 3.3.3

clerk officer operator supervisor engineer manager0

5

10

15

20

25

30

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. Department No. of Respondents Percentage (%)

1 JTO(Junior Telecom officer) 3 3.0

2 SDE(Sub-Divisional Engineer) 2 2.0

3 DE(Divisional Engineer) 5 5.0

4 DGM(Deputy General Manager) 3 3.0

5 DM(Draughts Man) 6 6.0

6 TSO(Telecom Supervisor officer) 12 12.0

7 SSO(Senior Section Officer) 6 6.0

8 TOA(Telecom Office Assistant) 15 15.0

9 TS(Telecom supervisor) 11 11.0

10 TO(Telecom operator) 7 7.0

11 TC(Telecom clerk) 9 9.0

12 CTS(Chief Trunk Supervisor) 6 6.0

13 STS(Senior Trunk Supervisor) 8 8.0

14 SS(Section Supervisor) 7 7.0

TOTAL 100 100.0

FIGURE 3.3.4

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JTO SDE DE DGM DM TSO SSO TOA TS TO TC CTS STS SS

0

2

4

6

8

10

12

14

16

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.

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TABLE 3.3.5

EXPERIENCE OF THE EMPLOYEES

S. No Experience (in years) No. of Respondents Percentage (%)

1 Up to 5 years 2 2.0

2 5-15 years 26 26.0

3 16-25 years 27 27.0

4 Above 25 years 45 45.0

Total 100 100.0

FIGURE 3.3.5

Upto 5 years 5-15 years 16-25 years Above 25 years0

5

10

15

20

25

30

35

40

45

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 Monthly Income No. of Respondents Percentage (%)

1 Up-to Rs.12000 25 25.0

2 Rs.12001 - Rs.20000 28 28.0

3 Above Rs. 20000 47 47.0

Total 100 100.0

FIGURE 3.3.6

upto Rs. 12000 Rs.12001 - Rs. 20000 Above Rs.20000

25 28

47

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.

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TABLE 3.3.7

LEVEL OF EFFECTIVENESS OF PERFORMANCE APPRAISAL

S. No Level of Effectiveness No. of Respondents Percentage (%)

1 Low 32 32.0

2 Medium 33 33.0

3 High 35 35.0

Total 100 100.0

FIGURE 3.3.7

Low Medium High29

30

31

32

33

34

35

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.

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TABLE 3.3.8

AWARENESS OF PERFORMANCE APPRAISAL

S. NO AWARENESS NO OF RESPONDENTS PERCENTAGE (%)

1 Yes 72 72.0

2 No 28 28.0

Total 100 100.0

FIGURE 3.3.8

Yes

No

0

10

20

30

40

50

60

70

80

72

28

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 Appraised No. of Respondents Percentage (%)

1 Yes 68 68.0

2 No 32 32.0

Total 100 100.0

FIGURE 3.3.9

yes68%

no32%

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 EMPLOYEE’S OPINION No. of Respondents Percentage (%)

1 Evaluation of employees 30 30.0

2 Promotion of employees 24 24.0

3 Job satisfaction of employees 28 28.0

4 Motivation 18 18.0

Total 100 100.0

FIGURE 3.3.10

evaluation of employees promotion of

employees job satisfaction of employees motivation

0

5

10

15

20

25

30

30

2428

18

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.

30

TABLE 3.3.11

FREQUENCY OF PERFORMANCE APPRAISAL

S. NO FREQUENCY OF

PERFORAMANCE

APPRAISAL

No. of Respondents Percentage (%)

1 Once in a year 89 89.0

2 Once during the service

period

7 7.0

3 Never 0 0.0

4 Can’t say 4 4.0

Total 100 100.0

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 can’t 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

Once in a year Once during the service period

Never Can’t say0

10

20

30

40

50

60

70

80

90

89

7

04

32

TABLE 3.3.12

GAP BETWEEN PERFORMANCE APPRAISALS

S. NO FREQUENCY OF

PERFORAMANCE

APPRAISAL

No. of

Respondents

Percentage

(%)

1 Quarterly 20 20.0

2 Half-yearly 44 44.0

3 Yearly 36 36.0

Total 100 100.0

FIGURE 3.3.12

Quaterly Half Yearly Yearly0

5

10

15

20

25

30

35

40

45

50

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 half-

yearly and 36.0% of the respondents have said that there is yearly gap between the two

appraisal periods.

TABLE 3.3.13

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Who should do the Appraisal?

S. No Appraisers No. of Respondents Percentage (%)

1 Superior 78 78.0

2 Peer 5 5.0

3 Self-Appraisal 2 2.0

4 Sub-ordinate 4 4.0

5 Consultant 4 4.0

6 All the above 2 2.0

7 Superior + Peer 5 5.0

Total 100 100.0

FIGURE 3.3.13

Superior Peer Self-Appraisal Sub-ordinate Consultant All the aboveSuperior + Peer

78

52 4 4 2

5

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.

TABLE 3.3.14

34

METHOD OF PERFORMANCE APPRAISAL FOLLOWED IN BSNL

S. NO Methods No of

Respondents

Percentage (%)

1 Ranking Method 58 58.0

2 Paired Comparison 15 15.0

3 Critical Incidents 4 4.0

4 MBO 12 12.0

5 360 degree 5 5.0

6 Assessment Centre 6 6.0

Total 100 100.0

FIGURE 3.3.14

Ranking Method

Paired Comparison

Critical Incidents

MBO 360 degree Assessment Centre

0

10

20

30

40

50

60

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.

35

TABLE 3.3.15

DOES PERFORMANCE APPRAISAL HELPS IN POLISHING SKILLS

AND PERFORMANCE AREA

S. NO Options No. of

Respondents

Percentage (%)

1 Yes 74 74.0

2 No 10 10.0

3 Somewhat 16 16.0

Total 100 100.0

FIGURE 3.3.15

Yes No Somewhat0

10

20

30

40

50

60

70

80

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.

TABLE 3.3.16

36

DOES PERFORMANCE APPRAISL LEADS TO IDENTIFY HIDDEN

POTENTIAL

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

1 Yes 91 91.0

2 No 2 2.0

3 Somewhat 7 7.0

Total 100 100.0

FIGURE 3.3.16

Yes No Somewhat0

10

20

30

40

50

60

70

80

90

100

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.

TABLE 3.3.17

37

IF GIVEN A CHANCE, WOULD EMPLOYEES LIKE CURRENT

APPRAISAL TECHNIQUE TO REVIEW

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

1 Yes 87 87.0

2 No 4 4.0

3 Can’t say 9 9.0

Total 100 100.0

FIGURE 3.3.17

Yes No Can’t say0

10

20

30

40

50

60

70

80

90

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 can’t say that the performance appraisal should be reviewed.

TABLE 3.3.18

38

PROMOTION, TRANSFER, DEMOTION, SUSPENSION AND

DISMISSAL IS PURELY BASED ON THE PERFORMANCE

APPRAISAL

S. No OPTIONS No. of

Respondents

Percentage (%)

1 Yes 70 70.0

2 No 9 9.0

3 Sometimes 21 21.0

Total 100 100.0

FIGURE 3.3.18

Yes No Sometimes0

10

20

30

40

50

60

70

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.

TABLE 3.3.19

39

OVERALL PERFORMANCE IN LAST THREE YEARS

S. No Options No. of

Respondents

Percentage (%)

1 Strongly Satisfied 24 24.0

2 Satisfied 55 55.0

3 Neutral 19 19.0

4 Dissatisfied 2 2.0

5 Strongly dissatisfied 0 0

Total 100 100.0

FIGURE 3.3.19

Strongly Satisfied Satisfied Neutral Dis-Satisfied Strongly Satisfied0

10

20

30

40

50

60

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.

TABLE 3.3.20

40

AFTER PERFORMANCE APPRAISAL IMPROVEMENT IN YOUR

PERFORMANCE

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

1 10-20 2 2.0

2 20-30 6 6.0

3 Above 30 30 30.0

4 Motivation 62 62.0

Total 100 100.0

FIGURE 3.3.20

Oct-20 20-30 Above 30 Motivation0

10

20

30

40

50

60

70

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

PERCENTAGE

(%)

1 Yes 5 5.0

2 No 95 95.0

Total 100 100.0

FIGURE 3.3.21

Yes5%

No95%

Chart Title

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.

TABLE 3.3.22

42

WHETHER BSNL EMPLOYEES SUPPORTS THE 360 DEGREE

PERFORMANCE APPRAISAL METHOD

INFERENCE:

S. no Factors

LEVEL OF EFFECTIVENESS

Agree

Neither

agree nor

Disagree

Disagree

1

360 degree helps to

provide an atmosphere

where all are encouraged

to share one another

burden.

18(16.66%) 63(45.3%) 19(35.8%)

2360 degree helps employee

to set and achieve goals.57(52.7%) 23(16.5%) 20(37.7%)

3

360 degree gives

constructive criticism in a

friendly and positive

manner.

33(30.5%) 53(38.1%) 14(26.4%)

GRANT TOTAL 108 139 53

Level of effectiveness

(Mean)36 46.33 17.66

43

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.

CHI-SQUARE - HYPOTHESIS TESTING:

44

TABLE 3.3.23

AGE AND LEVEL OF EFFECTIVENESS OF PERFORMANCE APPRAISAL

(TWO WAY TABLE)

Age Level of Effectiveness ROW TOTAL

LOW MEDIUM HIGH

Below 35 years 12 16 6 34

36-45 years 10 7 18 35

Above 45 years 10 10 11 31

COLUMN TOTAL 32 33 35 100

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 LEVEL OF EFFECTIVENESS ROW TOTAL

Low Medium High

Below 35 years O

E

12 16 6 34

10.88 11.22 11.9

36-45 years O

E

10 7 18 35

11.2 11.55 12.25

Above 45 years O

E

10 10 11 31

9.92 10.23 10.85


OBSERVED VALUE (O) EXPECTED VALUE(E) 2 = (O-E)^2/E

12 10.88 0.115

45

10 11.2 0.128

10 9.92 6.45*10^-4

16 11.22 2.036

7 11.55 1.792

10 10.23 5.171*10^-3

6 11.9 2.925

18 12.25 2.69

11 10.85 1.911*10^-4

CHI-SQUARE 2 TOTAL 9.692

CHI – SQUARE TEST:

Calculated 2 value = 9.692

Degree of freedom = 4

Table value = 9.488

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 age and level of effectiveness of performance

appraisal.

TABLE 3.3.24

46

MONTHLY INCOME AND LEVEL OF EFFECTIVENESS OF PERFORMANCE

APPRAISAL (TWO-WAY TABLE)

MONTHLY INCOME LEVEL OF EFFECTIVENESS ROW TOTAL

LOW MEDIUM HIGH

UPTO 12,000 8 11 6 25

12,000 – 20,000 14 7 7 28

Above 20,000 10 15 22 47


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.


MONTHLY INCOME LEVEL OF EFFECTIVENESS ROW TOTAL

LOW MEDIUM HIGH

UPTO 12,000 O

E

8 11 6 25

8 8.25 8.75

12,000 – 20,000 O

E

14 7 7 28

8.96 9.24 9.80

Above 20,000 O

E

10 15 22 47

15.04 15.51 16.45


47

OBSERVED VALUE (O) EXPECTED VALUE (E) 2 = (O-E)^2/E

8 8 0

14 8.96 2.835

10 15.04 1.688

11 8.25 0.916

7 9.24 0.543

15 15.51 0..016

6 8.75 0.864

7 9.80 0.8

22 16.45 1.872


CHI-SQUARE TEST:

Calculated chi-square value= 9.534

Degree of Freedom = 4

Table value = 9.534

Result = significant at 5 % level.

INFERENCE



close significant relationship between monthly income and level of effectiveness of

performance appraisal.

TABLE 3.3.25

48

EXPERIENCE AND LEVEL OF EFFECTIVENESS OF

PERFORMANCE APPRAISAL

EXPERIENCE LEVEL OF EFFECTIVENESS ROW TOTAL

LOW MEDIUM HIGH

UPTO 15 YEARS 13 6 9 28

16-25 YEARS 11 11 5 27

ABOVE 25 YEARS 8 16 21 45


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.


Experience Level of effectiveness Row total

Low Medium High

Up-to 5 years O

E

13 6 9 28

8.96 9.24 9.80

16-25 Years O

E

11 11 5 27

8.64 8.91 9.45

Above 25 years O

E

8 16 21 45

14.40 14.85 15.75



49

13 8.96 1.821

11 8.64 0.644

8 14.40 2.844

6 9.24 1.136

11 8.91 0.490

16 14.85 0.089

9 9.80 0.065

5 9.45 2.095

21 15.75 1.75


CHI - SQUARE TEST



Table value = 9.488


INFERENCE



close significant relationship between experience and level of effectiveness of performance

appraisal.

TABLE 3.3.26

50

DESIGNATION AND LEVEL OF EFFECTIVENESS OF

PERFORMANCE APPRAISAL

DESIGNATION LEVEL OF EFFECTIVENESS ROW TOTAL

LOW MEDIUM HIGH

Clerk 10 5 7 22

Officer 10 5 5 20

Supervisor 6 15 7 28

Engineer and operator 6 8 16 30


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.


51

DESIGNATION LEVEL OF EFFECTIVENESS ROW TOTAL

LOW MEDIUM HIGH

Clerk O

E

10 5 7 22

6.40 6.60 7

Office O

E

10 5 5 20

6.72 6.93 7.35

Supervisor O

E

6 15 7 28

8.96 9.24 9.80

Engineer and O

operator E

6 8 16 30

9.92 10.23 10.85



10 6.40 2.025

10 6.72 1.600952

6 8.96 0.977857

6 9.92 1.549032

5 6.60 0.387879

5 6.93 0.537504

15 9.24 3.590649

8 10.23 0.486109

7 7 0

5 7.35 0.751361

7 9.80 0.8

16 10.85 2.44447


CHI - SQUARE TEST

52



Table value = 12.592


INFERENCE



close significant relationship between designation and level of effectiveness of performance

appraisal.

4.1 SUMMARY OF FINDINGS

53

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 respondent’s 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.

Maximum (91.0%) of the respondents agreed that performance appraisal leads to

identify the hidden potential.

54

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.

4.2. SUGGESTIONS AND RECOMMENDATIONS

55

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.

4.3. CONCLUSION

56

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.

BIBLIOGRAPHY

57

1. Tripathi P.C (2002), Personnel Management and Industrial Relations published

by Sultan chand & Sons

2. Mamoria C.B (2002), Personnel Management published by Himalaya

publishing house

3. Malhotara R.K. Sharama S.D.& Nachhathar Singh (1999) Personnel

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

APPENDIX

http://www.managementstudyguide.com/

http://www.bsnl.co.in/

58

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 Male Female

3. Age: Below 25 25-35 36-45 Above 45

4. Department: ___________________________________________________

5. Designation: ____________________________________________________

6. Years of Experience: less than 5 years 5-15 years

16-25 years above 25 years

7. Monthly Income:

Up-to Rs. 12,000 Rs. 12001 – Rs. 20,000

Above Rs. 20,000.

8. Are you Aware of technique of performance appraisal being followed at BSNL?

Yes No

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

10. The performance standards are communicated to the employees in

advance______________________________________________

59

Yes No Never

11. Employee’s perception to the frequency of appraisal

a. Once in a year

b. Once during the service period

c. Continuous

d. Never

e. Can’t 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

15. In your opinion performance Appraisal system of your organization is related to which of

the following?

60

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 No

SA- STRONGLY AGREE A– AGREE NN-NEITHER AGREE NOR

DISAGREE DA-DISAGREE SDA- STRONGLY DISAGREE

S.NO FACTORS SA A NN DA SDA

19 Satisfied with the existing performance appraisal

system

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 Promotion is purely based on performance appraisal

25 Management fixes salary through the performance

rating

26 Transfer, demotion, suspension and dismissal is

based on performance appraisal

27 Performance appraisal improving the productivity of

the employee

61

28 Overall performance in last three years

29 360 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

___________________________________________________________________________

___________________________________________________________________________

____________________________________________________________.

Documents

Performance Appraisal in Bsnl