Project Report on Performance Appraisal

A Training Report

PERFORMANCE APPRISAL IN BAJAJ ALLIANZ LIFE INSURANCE CO. LTD, CANNOUGHT PLACE DELHI (Submitted in Partial Fulfillment of the Requirement of Bachelor of Business Administration, Distance Education) Punjab Technical University, Jalandhar

Project Guide: Ashwin Divakaran Name: Ashwin Divakaran Designation: Zonal HR

Submitted By: Nidhi kukreja Name: Nidhi kukreja Enrollment No.:1655 Specialization: Human Resources

Remark Of External Examiner Name: Designation:

Marks Scored: Signature:

Session 2008-2011 Indraprastha Institute of Technology & Management, New Delhi Punjab Technical University, Jalandhar

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Chapter 1

Company Profile

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COMPANY PROFILE

M i s s i o n : To b e co co m e a r e s po po n si s i b l e c u st s t o me m e r f o cu c u s ed e d m a rk r k e t l e ad a d e r. r. We s t il il l s t ri ri v e t o

understand the insurance needs of the consumers and translate it into affordable products that deliver value for money.

Vision:

To b e t h e f i r s t c h o i c e i n s u r e r f o r c u s t o m e r s . To b e t h e p r e f e r r e d e m p l o y e e f o r s t a f f i n t h e i n s u r a n c e i n d u s t r y . To b e t h e n u m b e r o n e i n s u r e r f o r c r e a t i n g s h a r e h o l d e r v a l u e .

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.

B a j a j A l l i a nz n z G e n e ra r a l I n s u r an a n c e C o m p a n y L i m i t e d i s a j o i n t v e n t u re r e b e t w e en en B a j a j A u t o Limited and Allianz AG of Germany. Both enjoy a reputation of expertise , stability and strength.

B a ja ja j

A l li li a nz nz

G e ne ne r al al

I n su s u r an a n c e r e ce ce i ve ve d

t h e I n su s u r an a n c e R e gu g u l at a t o ry ry

a n d D e ve ve l op o p m en en t

A u th th o r it it y ( I RD RD A ) c e rt r t i fi fi c at a t e o f R e gi g i s tr t r a ti ti o n ( R 3) 3) o n M a y 2 n d , 2 0 0 1 t o c o n du du c t G e n e ra ra l I n su s u r an a n c e b u si s i n es e s s ( i nc n c l ud u d i n g H e al al t h I n su s u r an a n c e b u si s i n es e s s ) i n I n di d i a . T h e C o mp mp a n y h a s a n authorized and paid up capital of Rs.110 crores. Bajaj Auto holds 74% and Allianz holds the remaining 26%. AG, Germany.

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I n i t s f i r s t y e a r o f o p e r a ti ti o n s t h e c o m p a n y h a s a c q u i r e d t h e N O . 1 s t a t u s a m o n g t h e p r i v a t e non-life insurers. As on 31 st March 2003, Bajaj Allianze General Insurance maintained its leadership position by garnering a premium income of Rs.300 Crores. Bajaj Al lianze also b e c a me m e o n e o f t h e f e w c o m p a n i es e s t o m a k e a p r o f i t i n i t s f i r s t f u l l y e a r o f o p e r at at i o n s . B a j a j Allianz made a profit after tax of Rs.9.6 crores.

B a j a j A l l ia ia n z e t o d a y h a s a n e t w or or k o f 4 0 o f f i c e s s p r e a d a c r o ss ss t h e l e n g t h a n d b r e a d t h o f t h e country. From Surat to Sliliguri and Jammu to Thiruvananthapuram, all the 38 o ffices 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 zo omed 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.



F i n a n c i a l s t r e n g t h a n d s t a b i l i t y t o s u p p o r t t h e i n su r a n c e b u s i n e s s

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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 cou ntries with over 177,000 employees. At the top of the international group is the holding comp any, Allianz AG, with its head office in Munich.

Allianz Group provides its more than 6 0 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 trillion euros in assets u nder 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.



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Introduction of Topic

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 understand organizational goals, and to provide fast and effective feedback. The users found the system easy to understand and use and were more satisfied with the overall effectiveness of the system.

The main focus of the study of this is to identify the areas in Performance 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 employee’s performance. This study report aims at covering all aspects related to performance.

In order to make this report comprehensive, sample appraisals are also provided. This study was conducted at bajaj allianz life insurance co. ltd, new delhi

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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 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 in determining.

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Chapter 5



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Scope & Objective

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.



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Literature Review

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.

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 :-

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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.

Goals of the Performance Appraisal System :-

For supervisors, the process of performance management is one of the most important l eadership responsibilities. The performance appraisal syatem has three primary goals:-

1.

To provide a formal means of constructive, open and honest communication 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 promotion, 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 employee’s job performance should seek input 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. It’s 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

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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.

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.

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

Measurable: - Goals and objectives should be written so that accomplishment or degrees of

accomplishment can be objectively measured.



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.



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.

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

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 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 performance 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

performance

ranking

has

been used to describe an altern- ative method

of

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 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.

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

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.



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 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.

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 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.

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.

Irrespective of the level by and large most companies use eleven performance measures: 1.

Quantity of work

2.

Quality of work

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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 employee’s 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.



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 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:

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

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:



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.

Signature On The Evaluation Form

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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 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 employee’s 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 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

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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 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 .

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:

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•

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 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 Appraisal

Performance Development

The performance standard provides a benchmark against which to evaluate work performance. While the job description describes the essential functions and the tasks to be done, the performance standard defines how well each function or task must be performed in order to meet or exceed expectations. The 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.

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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. 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:

•

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.

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•

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 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.

•

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.

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•

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 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.



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Introduction of Insurance

INTRODUCTION

The Insurance sector in India governed 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 in India. 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 country’s 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 in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation “Malhotra Committee” was 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 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: milestone’s 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

1928

insurance business The Indian Insurance Companies Act enacted to enable the government to collect statistical

1938

information about both life and non-life insurance businesses Earlier legislation consolidated and amended to by the Insurance Act with the objective of

1956

protecting the interests of the insuring public. 245 Indian and f oreign insurers and provident societies taken over b y t he c entral 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.

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: milestone’s in the the general insurance business in India Year

Milestones in the general insurance business in India

1907 1907

The Indi ndian Merc ercant antile ile Ins Insu uranc rancee Ltd Ltd.. se set up, up, the the fir first st compa ompany ny to trans ransaact all all class lassees of of

1957 1957

general insurance business Genera nerall Ins Insur uraance nce Co Counci uncil, l, a wi wing of the the In Insur suranc ance As Assoc sociati iation on of Indi Indiaa, fr frames mes a cod codee of of

1968 1968

conduct for ensuring fair conduct and sound business practices The Insur nsuraance nce Ac Act ame amend ndeed to to reg regul ulaate inv invest estment mentss and and set mini inimum mum so solve lvency ncy ma margins gins

1972 1972

and the Tariff Advisory Committee set up. The Gener eneral al Ins Insuran urance ce Bus Busine iness (Na (Nation tionaalis lisati ation) on) Ac Act, 1972 1972 nati natio onal nalise ised the the gene genera rall insurance business in India with effect from 1st January 1973. 107 insurers insurers amalgama amalgamated ted and grouped grouped into four companies companies viz. the National Insurance 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

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.

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Insurance Market- Present:

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 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 Dominate There 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 country’s largest life insurer, Life Insurance Corporation of India (LIC), had a share of 74.82% in new business premium income in November 2005.

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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 focused on growing the market for general insurance products and increasing penetration within existing customers through product innovation and distribution.

Reaching Reach ing Out To Custo Customers mers No 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, 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 AsiaPacific 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.

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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 employee’s 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:

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.

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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 semiannual 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 21-30 31-40 41-50 Total

No. of Respondents 14 2 4 20

Percentage 70 10 20 100

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 Male Female Total

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No. of Respondents 12 8 20

Percentage 60 40 100

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

Qualification-

Qualification Diploma Graduate Post Graduate Total

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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 Manager Officer Junior Officer VP Total

No. of Respondents 4 10 4 2 20

Percentage 20 50 20 10 100

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.

Part B: Research Data

1.

Is the Performance Appraisal process user friendly? a.

S.No. 1

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Options Yes

Yes

b.

No

No. of Respondents 16

Percentage 80

2 Total

No

4 20

20 100

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 individual’s strengths, improvement areas and also captures training courses recommended.



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



It is very flexible.

20% of the respondents are disagreed to the statement



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

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

As an employee need to know what is required of them in order to work effectively by this.

2.

Is Performance Appraisal conducted on time? a.

S.No. 1 2 Total

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Options Yes No

Yes

b.

No



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.

S.No. 1 2 Total

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Options Yes No

Yes

b.

No




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.

20% of the respondents disagreed to the statement 

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.

S.No. 1 2 Total

Options Yes No

Yes

b.

No



90% of the respondents agreed to the above statement

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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.

5.

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

S.No. 1 2 Total

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Options Yes No

Yes

b.

No







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



Various training programs are available and discussed with superiors.

40% of the respondents disagreed to the statement



Sometimes process will be failed due to some internal problems after getting orientated on the Performance Appraisal system.

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6.

How much time is spent in preparing for feedback session? a- 1 hour.

S.No. 1 2 Total

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Options 1 hour 2 hour

b- 2 hour




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 manager’s feedback on the employee to assess properly.



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 individual’s 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

S.No. 1 2 3 4 Total

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Options Excellent Good Average Poor

b- Good

c- Average


d- Poor


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.

S.No. 1 2 Total

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Options Yes No

Yes

b.

No







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.

30% of the respondents disagreed to the statement



Suggested by some managers to have half yearly appraisal system.



Promotion, salary revisions can be dealt during annual appraisal.

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

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

S.No. 1 2 Total

Options Time Process

b. Process



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.

S.No. 1 2 Total

Options Yes No

Yes

b.

No



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

S.No.

Options

No. of Respondents

Percentage

1

MBO

8

40

2

Critical Incident Method

4

20

3

Web based appraisal

8

40

20

100

system Total

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.

Present Appraisal System Satisfaction Level-

Particulars Good Satisfactory

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Respondents 12 6

Percentage 60 30

Poor Total

2 20

10 100

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.

Efficiency of the present appraisal system in employee development-

Particulars Yes No Total

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Respondents 16 4 20


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.

Present Appraisal system in setting work targets-


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Respondents 14 6 20


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. 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-

Particulars Useful discussions No discussions Only failure are discussed Genius Feedback is given Total

Respondents 11 4 2 3 20

Percentage 55 20 10 15 100

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. Thus, majority of respondents told they are useful discussions wi th appraiser after performance appraisal.

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Availability of feedback in Performance Appraisal system-


Respondents 17 3 20


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 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 individual’s 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.



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.

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

Sometimes process will be failed due to some internal problem after getting orientated on the performance appraisal system.



Feedback session involved revisions of individual’s accomplishments during the appraisal period. His/her strengths, improvement areas and training and development.



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

 It is necessary to now the earlier manager’s feedback on the employee to assess properly. 

In Performance 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.



Performance Appraisal should be developed and implemented in consultation with employees and superiors.



Performance Appraisal should operate equitable throughout the organization.

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

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.

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 subordinate 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 subordinate 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 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.

2.

b.

No

Yes

b.

No

Yes

b.

No

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

6.

Yes

Is Performance Appraisal process is simple to understand? a.

5.

No

Does Performance Appraisal process assess fairly? a.

4.

b.

Is Performance Appraisal conducted on time? a.

3.

Yes

Yes

b.

No

How much time is spent in preparing for feedback session? a- 1 hour

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b- 2 hour

7.

In your opinion how is overall performance appraisal system in “BAJAJ ALLIANZ LIFE INSURANCE”? a. Excellent

8.

b- Good

c- Average

d- Poor

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 9.

b. Process

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

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b. Critical Incident Method

c. Web based Method.

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 personnel’s. 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.

After the survey and the conversation by the people of other company we came to know that they have introduced the 360-degree performance appraisal in the company. Before they were using the same method as used by BAJAJ ALLIANZ LIFE INSURANCE at times they used “Forced

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choice method” also to rate the performance, which affected the companies working to a great extent.

But when they realized that they are having complains from the workers, staff etc. they decided to go for a change and now they incorporated 360-deree performance appraisal, the result of using this method is that everyone in the company is satisfied by it.

Hence accordingly to my views I would also suggest the company to go for the change it the method adopted by them for better results and employee satisfaction.

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Project Report on Performance Appraisal

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