CHAPTER 1 INTRODUCTION TO COMPANY

INTRODUCTION

EXECUTIVE SUMMARY
Vodafone is the worlds leading international mobile communications group, providing a wide range of communications services. It has been named the 'Most Respected Telecom Company', the 'Best Mobile Service in the country', and the 'Most Creative and Most Effective Advertiser of the Year'. The study is divided into two parts; the first part mainly involves studying and analyzing the current performance management system and identifying the gaps between the current state and the desired-in-state. The general methodology adopted for study was primary collection of primitive data that is questionnaire, interviews and observation. Some secondary sources like company records, manuals, books, accounting and internet were also tapped. The second part involves designing a more effective performance management system. The effort involved designing a guide book on performance appraisal, which throws light on the critical area of managing human performance. The scope of the project involved defining and designing performance management system, devising feedback system, motivating and rewarding performance, employee career growth and development and studying the implications of an effective performance management system on organizations performance. Effectively managing performance appraisal has never been more critical than in todays dynamic business environment. In order to drive increased productivity managers must consistently monitor team performance and provide meaningful feedback to their subordinates. Employees must constantly be aware of their progress as the expectations for their contributions evolve. Finally, visibility to employee accomplishments and areas of weaknesses should be used by managers to provide coaching and guidance to their subordinates. The reality is that without adequate performance appraisal tools, any and all of these requirements are difficult to fulfill. The performance appraisal application allows for an ongoing meaningful feedback mechanism between managers and their subordinates. It helps transform the often rushed and tedious once-a-year performance review into an ongoing that is continuous performance appraisal process that ties employee performance to bottom line business results. Most importantly, the improved effectiveness of the overall process has been proven to increase employee morale and overall productivity.

FEATURES

1 Ensures employees understand the merits and standard upon which they are evaluated promoting a sense of fairness and equality. 2 Supports meaningful formal and informal performance appraisal base on goal accomplishments and competency attainments. 3 Provides a framework for ongoing coaching and development to improve future performance and productivity requirements. 4 Is fully integrated with goal setting and compensation planning. 5 Provides completely secure authorization and flexible approval workflow. The proposed study and outcomes will give insights to the HR managers about how to plan, motivate, manage, control and reward employee performance in the best possible manner so as to improve the overall productivity in the organization.

COMPANY PROFILE

Vodafone Group plc (LSE: VOD, NASDAQ: VOD) is a global telecommunications company headquartered in Newbury, United Kingdom. It is the world's largest mobile telecommunications company measured by revenues and the world's second largest measured by subscribers (behind China Mobile) with 347 million proportionate subscribers as at 30 June 2010. It operates networks in 31 countries and has partner networks in a further 44 countries. It owns 45% of Verizon Wireless, the largest mobile telecommunications company in the United States measured by subscribers. The name Vodafone comes from voice data fone, chosen by the company to "reflect the provision of voice and data services over mobile phones". Its primary listing is on the London Stock Exchange and it is a constituent of the FTSE 100 Index. It had a market capitalisation of approximately 80.2 billion as of August 2010, making it the third largest company on the London Stock Exchange.It has a secondary listing on NASDAQ. Vodafone Group plc

Type

Public limited company (LSE: VOD, NASDAQ: VOD) Telecommunications 19831991 Racal Telecom 1984 Newbury, United Kingdom Worldwide Sir John Bond (Chairman)

Industry Predecessor Founded Headquarters Area served Key people

Vittorio Colao (CEO) John Buchanan (Deputy Chairman) Andy Halford (CFO) Services Revenue Telecommunications 44.47 billion (2010)[1]

Operating income 9.480 billion (2010)[1] Profit Total assets Total equity Employees 8.645 billion (2010)[1] 156.98 billion (2010)[1] 90.38 billion (2010)[1] 79,000 (March - 2009)[1]

HISTORY
Vodafone itself was formed in 1982 as a joint venture between Racal Electronics plc's subsidiaries Racal Strategic Radio Ltd (who won one of two UK cellular telephone network licenses) along with Millicom and the Hambros Technology Trust. In this arrangement Racal owned 80%, Millicom 15% and Hambros 5%. The network was known as Racal Vodafone, with the Vodafone name being derived from the firm's goal of establishing a voice and data services over cellular telecommunication networks. Hence VO represented voice and DA symbolized data yielding the name Vodafone. Vodafone was launched on 1 January 1985 and later that year Racal Strategic Radio was renamed Racal Telecommunications Group Limited in 1985. A year later, on 29 December 1986 Racal Electronics bought out the minority shareholders of Vodafone for GB110 million. In September 1988 the company was again renamed Racal Telecom and on 26 October 1988 Racal Electronics floated 20% of the company a flotation that valued Racal Telecom at GB1.7 billion. On 16 September 1991 Racal Telecom was demerged from Racal Electronics as Vodafone Group and the mobile telephony giant was born.

During the mix 1990s Vodafone began to consolidate itself on the British high-street. In July 1996 Vodafone acquired the two thirds of Talkland it did not already own for 30.6 million. On 19 November 1996, in a defensive move, Vodafone purchased Peoples Phone for 77 million, a 181 store chain whose customers were overwhelmingly using Vodafone's network. In a similar move the company acquired the 80% of Astec Communications that it did not own, a service provider with 21 stores. This made Vodafone a very visible presence on the British high street and significantly increased the company's share of UK mobile customers.

New Corporate Logo of Vodafone as of 1997. In 1997 Vodafone introduced its new corporate Speech mark logo. This represents a quotation mark within a circle. With the 'O's in the Vodafone logotype being opening and closing quotation marks, suggesting conversation.

VODAFONE HISTORY IN INDIA

Vodafone Essar, formerly known as Hutchison Essar is a cellular operator in India that covers 23 telecom circles in India based in Mumbai. Vodafone Essar is the Indian subsidiary of Vodafone Group 67% and Essar Group 33%. It is the second largest mobile phone operator in terms of revenue behind Bharti Airtel, and third largest in terms of customers. The company now has operations across the country with over 113.77 million customers. On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications, Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued at USD 18.8 billion. The transaction closed on May 8, 2007. Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM phone coverage throughout India with good presence in the metros. Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 23 of the country's 23 licence areas. It is among the top three GSM mobile operators of India.

Vodafone Essar will launch third-generation (3G) services in the country in the January-March quarter of 2011 and plans to spend up to $500 million within two years on its 3G networks. Vodafone Essar Limited

Type Industry Predecessor Founded Headquarters Products

Limited Mobile telecommunications Hutchison Essar 1994 Mumbai, Maharashtra, India Mobile Telecom services, Etc. Vodafone Essar Group (33%) networks,

Owner(s)

Group (67%)

Employees Website

10,000 March 31, 2009[1] Vodafone India

PREVIOUS BRANDS
Initially around 1995 it was "MAX TOUCH"...then around 2000 it was ORANGE..... In December 2006, Hutchison Essar re-launched the "Hutch" brand nationwide, consolidating its services under a single identity. The Company entered into an agreement with NTT DoCoMo to launch i-mode mobile Internet service in India during 2007.

The company used to be named Hutchison Essar, reflecting the name of its previous owner, Hutchison. However, the brand was marketed as Hutch. After getting the necessary government approvals with regards to the acquisition of a majority by the Vodafone Group, the company was rebranded as Vodafone Essar. The marketing brand was officially changed to Vodafone on 20 September 2007. On September 20, 2007 Hutch became Vodafone in one of the biggest brand transition exercises in recent times. Vodafone Essar is spending somewhere in the region of Rs. 250 crores on this highprofile transition being unveiled today.Along with the transition, cheap cell phones have been launched in the Indian market under the Vodafone brand. The company also plans to launch co-branded handsets sourced from global vendors as well. A popular daily quoted a Vodafone Essar director as saying that "the objective is to leverage Vodafone Group's global scale in bringing millions of low-cost handsets from across-the-world into India." Incidentally, China's ZTE, which is looking to set-up a manufacturing unit in the country, is expected to provide several Vodafone handsets in India. Earlier this year, Vodafone penned a global low-cost handset procurement deal with ZTE.

CHAPTER 2

INTRODUCTION TO PROJECT

INTRODUCTION TO PROJECT
PERFORMANCE MANAGEMENT
Performance management is an excellent method of helping organization delivers lasting improvement. It does this by ensuring individuals, teams, and ultimately the organization, know what they should be doing, how they should be doing it and take responsibility for what they achieve. It is about placing the emphasis on managing, supporting and developing staff at all levels in the organization. An integral part of this is the need to monitor performance, reward staff that perform well, and challenge those who do not. For performance management to work well it is crucial that senior management can communicate effectively across the organization and ensure that employees fully understand the organization's key corporate objectives and the reasons behind them.

BENEFITS OF PERFORMANCE MANAGEMENT

Having an effective performance management system has multiple benefits for organization, ultimately resulting in better, more efficient, services. These are:-

1 It means everyone knows where the organization is going, as there is a clear focus on key objectives and priorities. This level of clarity helps to correctly direct resources, which means there are less instances of over and under resourcing. 2 It makes life more satisfying for employees because they know what is expected of them, and how this fits into the bigger picture, but also that they can call on extra support to help them to perform well. 3 As the whole emphasis is on meeting set criteria and meeting targets, it is easier to monitor how services are performing and to take action to intervene and improve where necessary. 4 It helps organization to meet their legal responsibilities in employment in terms of health and safety, equality and diversity. Employees and the organization itself will be bound by implied and explicit contractual terms, such as codes of conduct, the duty of mutual trust and confidence and the duty to obey reasonable instructions, as well as health and safety and equalities legislation. Legal issues will also arise in cases where the organization seeks performance improvement or decides to terminate employment on the grounds of the employee's incapability to do their job.

DEVELOPING THE RIGHT ORGANIZATIONAL ATTITUDE

Effective performance management requires an ongoing dialogue with staff. A number of simultaneous actions are needed to help develop an organizational attitude where performance is managed well and really leads to service improvement. It is important to make sure employees know the key organization objectives and priorities, what they should focus on and how they can contribute. Being given too many initiatives and plans tends to make employees feel overloaded. Effort is needed to manage and improve performance, as employees need to know how it can help them deliver. You may wish to make these benefits service specific or more general such as ensuring resources are targeted where they are most needed, improving services and systems, better 'joining up' of activities across the organization or helping develop employees to perform their roles more effectively. Ensure that employees who perform well are rewarded and those who underperforms are challenged. It is critical that organization back up what they say about performance by what they do. Employees are then more likely to feel that the way they are dealt with is fair and open and will also take the issue more seriously.

THE PERFORMANCE MANAGEMENT FRAMEWORK

Clear, consistent systems and procedures are needed to support the ongoing dialogue with employees on performance management and provide feedback on how this is impacting on organization service delivery. The emphasis should be on developing an approach tailored to help the organization and its employees to perform well which is not too complex for the benefits it delivers. Whatever the approach, everyone should know where to find information about performance management and be able to access it whenever they need to. Performance management needs to operate at organizational, team and individual level if it is to be effective. This means that organizational objectives inform the development

of team and individual objectives, and individuals and teams can feedback from the frontline to support the development of future organizational objectives and plans. Using this approach helps to ensure that support and development opportunities are appropriate, gives a wider perspective on service issues, helps to identify any barriers to implementation and can assist with determining better measures of effective performance. The performance management process is cyclical, consisting of three stages, which are: Defining and planning: identifying what type of performance is required and how it can be met. Delivering and monitoring: providing appropriate support and development and checking progress. Evaluating: assessing whether or not performance is to the required standard, recognizing where standards have been met and seeking improvements where they have not.

READINESS FOR PERFORMANCE MANGEMENT

It is generally accepted that performance management is a key factor for achieving high quality service delivery. However, for many organizations it remains an extremely tough issue to get right, as there are many factors that contribute to whether the performance management approach is effective, including senior management commitment, clear organizational objectives and systems and processes that help rather than hinder. The Employers' Organization develops a questionnaire that organization can use to identify whether or not they are ready for the performance management challenge and whether any further work needs to be undertaken to prepare. Organization can decide, against a number of statements related to areas such as commitment, processes and skills, whether they are ready for performance management, nearly ready, some way off or a long way off. From this, organization can identify the priority areas that need to be improved before performance management can be implemented effectively.

TEN STEPS TO EFFECTIVE PERFORMANCE MANGEMENT

There are ten basic steps that organization needs to take to develop and implement an effective performance management system. The emphasis should be on developing a strategy tailored to help the organization perform well which is not too complex for the benefits it delivers. 1. Develop business plans Business planning must take account of what can realistically be delivered with the organization resources available and consider the people management implications. Once organization plans and priorities have been established these then need to be translated into service, team and individual performance plans. This is a highly skilled task that is critical for the performance management process to work well. It is important that managers are given appropriate support to carry this out effectively.

2. Establish what aspects of performance need to be measured Any national or local performance indicators being used must be clearly communicated to staff and elected members, along with other measures being used to define performance. The focus should be on measuring what matters and trying to keep these measures to a reasonable number. 3. Set up systems to monitor and evaluate Systems need to be set up to ensure that performance can be monitored and evaluated throughout the year to ensure that it is improving service delivery. It is therefore essential that the performance management approach supports the organization's organizational development and people management strategies, so that it helps rather than hinders progress. 4. Define the general performance expectations of employees This may be done through a combination of approaches such as the use of competences, policies and procedures. Line managers should be given specific responsibilities for managing performance. Effective ways of doing this are making it an explicit part of their job role and incorporating how to manage performance into management training programmes. In return there should be clear and consistent expectations of what is expected of employees while they are working for the organization. 5. Agree specific performance objectives Organization plans and priorities need to be translated to team and individual performance objectives. Agreeing individual performance and employee development needs is normally carried out using a combined performance management and staff development process. This approach provides the framework for helping managers to translate team plans into individual plans and objectives and agree how these will be met. Individual plans and objectives are most effective when both manager and employee agree them. Objectives should be specific, measurable, agreed, and realistic and time bound (SMART). 6. Develop an internal communications system It is normally accepted that to be effective messages need to be communicated in a range of different ways that really target the group of staff you are trying to reach. There is a wide range of different approaches that can be adopted to ensure staff is kept in contact with key performance issues. For example, there are staff briefings; meetings; lunch time seminars; use of the intranet; mini articles or stories in staff magazines; posters; bulletin boards; email alerts; line management and supervision meetings. Conducting regular staff surveys and running a suggestion scheme are also important ways of ensuring that employees have opportunities to feedback on a wide range of issues that will impact directly or indirectly on organizational performance. 7. Ensure the performance management system is in place, is well understood and working effectively A performance management system is used to set objectives, identify support needs and measure progress against objectives. For it to work effectively it needs to be clearly understood by both managers and employees. This means ensuring that managers have access to guidance and training to ensure that they manage performance effectively throughout the year and employees at all levels within the organization have the necessary support, guidance or training to enable them to actively engage in the performance management process.

The performance management system should also be regularly reviewed to ensure that it is achieving what is required. 8. Support employees to help them perform well Effective induction and probation processes for new employees are extremely important in setting the right expectations for performance on both sides. If this early stage is managed well it may be possible to intervene to prevent or minimize individual capability issues later on through personal development or redeployment. Feedback from this process may also highlight problems with job design or recruitment processes, which then need to be rectified. Responsibility for meeting staff development needs may be addressed in the team or service or may be fed back to a central HR function for action. Whatever the approach, the organization needs an overview of its organizational capability and how it plans to address any gaps that will hamper the achievement of its objectives. This strategic human resource management would normally be the responsibility of the HR function. All employees, even those who have been in the same post for some time, should be encouraged to consider how they are performing and what else they could learn or do differently to deliver better services. In some cases these needs will be adequately met through attending training courses but there are many other possibilities, such as mentoring, e-learning, working on projects or reading manuals. Wherever possible the employee should be given the opportunity to agree the most suitable option. Performance needs to be actively managed and monitored throughout the year. An essential part of this dialogue is the giving and receiving of feedback. For this to work effectively the organizational climate must encourage the sharing of both success and failure. Without this employees will be reluctant to comply and the quality of the feedback may be lacking. As well as managers, employees at all levels in the organization may also need support, guidance or training to enable them to actively engage in the performance management process. 9. Seek performance improvement Of course, there will be circumstances where performance does not meet the required standard. At organizational level, this will mean identifying what the barriers are to effective performance and putting in place a plan to deliver improvement. At both team and individual level the principles will be the same, but it may be more difficult to manage, as individual sensitivities and complexities may be at the fore. Having in place a clear process for dealing with inadequate performance is important. However, it is essential that the process does not take over from the desired outcome, which is to seek performance improvement. Identifying the reason for inadequate performance is the first step. From this the organization can determine further action, which may involve disciplinary procedures; additional training or support; monitoring and review mechanisms; changing job roles or in some cases dismissal. It is also important that learning from these actions is taken on board, for example to improve future performance management mechanisms or selection methods. Organization should also review job design and work flexibility as ways of improving performance. 10. Recognize and reward good performance This is the part that many organizations forget; instead they take good performance for granted and focus on those who have not met the standard. However, to retain motivation and continuously improve, it is essential that good performance is recognized and rewarded. Recognition and reward will mean different things to different people; for some financial reward in the form of pay rises or bonuses may be

important, whereas for others recognition that their contribution has made a difference will be enough. When determining what will be the most appropriate reward the organization will need to understand what motivates their workforce and how they can meet this need. Pay systems and processes will be important, but it will also be necessary to identify other reward mechanisms such as opportunities for development and career progression. Recognizing performance is also about sharing success stories across the organization and highlighting how good performance helps the organization as a whole. This may also help with sharing good practice and learning about what works.

ACTION CHECKLIST
Performance management strategies only work if each group within an organization knows exactly what they are meant to be doing: Members should: 1 Recognize the impact performance management has on service delivery improvement. 2 Endorse the overall performance management strategy 3 Ensure that resources are targeted appropriately 4 Identify and reflect on their own development needs 5 Regularly monitor and review how the strategy is progressing and how it is improving services Senior managers should: 1 Recognize the impact performance management has on service delivery improvement 2 Ensure that corporate visions, objectives and plans are communicated down to team and individual performance level 3 Take a lead role in the development and implementation of the organization's performance management strategy 4 Ensure that resources are targeted appropriately 5 Set targets and monitor managers' performance against the strategy's objectives 6 Identify and reflect on development needs for themselves and their teams 7 Regularly monitor and review how the strategy is progressing and how it is improving services Line managers should: 1 Recognize the impact performance management has on service delivery improvement 2 Ensure that organizational objectives are understood by team members 3 Select the best people to perform particular jobs and tasks 4 Regularly monitor and feed back to employees on their performance 5 Seek advice and support in order to improve performance management practice 6 Monitor how well their team is doing against the strategy 7 Identify and reflect on development needs for themselves and their teams 8 Evaluate the impact performance and development opportunities are having on service improvement

The HR team should: 1 Support the development of the performance management strategy and ensure that it reflects the wider people management context 2 Ensure that all HR activities support the strategy 3 Make sure that the HR function is able to support and deliver against the strategy's targets Employees and their representatives should: 1 Be involved in the development and implementation of the strategy 2 Ensure that they understand where their individual objectives fit with organizational, service and team objectives

IMPLEMENTATION
Too often, performance appraisal is seen merely as a once-a-year drill mandated by the personnel department. But in organizations that take performance appraisal seriously and use the system well, it is used as an ongoing process and not merely as an annual event. In the company performance appraisal follows a four-phase model: Phase 1: Performance Planning. At the beginning of the year, the manager and individual get together for a performance-planning meeting. In this hour-long session they discuss what the person will achieve over the next twelve months (the key responsibilities of the persons job and the goals and projects the person will work on) and how the person will do the job (the behaviors and competencies the organization expects of its members). They typically also discuss the individuals development plans. Phase 2: Performance Execution. Over the course of the year the employee works to achieve the goals, objectives, and key responsibilities of the job. The manager provides coaching and feedback to the individual to increase the probability of success. He creates the conditions that motivate and resolves any performance problems that arise. Midway through the yearperhaps even more frequentlythey meet to review the individuals performance thus far against the plans and goals that they discussed in the performance-planning meeting. Phase 3: Performance Assessment. As the time for the formal performance appraisal nears, the manager reflects on how well the subordinate has performed over the course of the year, assembles the various forms and paperwork that the organization provides to make this assessment, and fills them out. The manager may also recommend a change in the individuals compensation based on the quality of the individuals work. The completed assessment form is usually reviewed and approved by the appraisers boss. Othersperhaps the department head or the compensation managermay also review and approve the assessment.

Phase 4: Performance Review. The manager and the subordinate meet, usually for about an hour. They review the appraisal form that the manager has written and talk about how well the person performed over the past twelve months. At the end of the review meeting they set a date to meet again to hold a performance-planning discussion for the next twelve months, at which point the performance management process starts anew.

STRATEGY BASED PERFORMANCE MANAGEMENT

WHAT OBJ ST ANDARDS GOALS RESUL TS

OVERALL ORGANIZ ATION STRATEGY STRATEGIC PLAN MISSION/VISION/VALUES DEPARTMENT/UNIT OBJECTIVE COMMON ORGANIZ ATIONAL COMPETENCIES

HOW COMPETENCIES BEHAVIOURS SKILLS PERFORMANCE

PERFORMANCE PLANNING PERFORMANCE EXECUTION

PERFORMANCE REVIEW

MANAGERS RESPONSIBIL TIES INDIVIDUAL RESPONSIBILITIES PERFORMANCE ASSESSMENT

JUDGING STRENGTHS WEAKNESSES COMPENSATION POTENTIAL

COACHING TRAINING DEVELOPMENT PLANNING

PERFOMANCE MANAGEMENT IN VODAFONE

WHAT IS WORK?
Work involves anticipating and planning; and it involves adaptability to suit varying needs, rather than merely using what is accessible. It is something performed to meet Basic physiological needs Achievement needs Self-actualization needs

Work may be mental or manual, blue collared or white collared More important is the way it is done, the commitment and effort that has been put in and the result/outcome. Mere enjoyment of the work would not translate to good work. There is always primary objective and multiple secondary objectives. Striking a perfect balance will be the factor responsible for the successful accomplishment of the work.

WHAT IS PERFORMANCE?
Means outcome achieved or accomplishment at work. Performance mainly consists of two aspects Behavior Outcome These are the 3 abilities or forces in an individual are said to be essential for achievement. Iiccha Janna kriya Iccha desire or motivation Janna-knowledge or know-how Kriya-action to actualize

WHAT IS PERFORMANCE MANAGEMENT?

PM is a way of systematically managing the performance of individual, group and/or the organization based on the predetermined targets and measurable objectives. It is a holistic process which envisages setting performance targets, measuring performance, conduction gap analysis and root cause analysis and using the resultant leading and lagging indicators for the performance enhancements techniques like training, compensating management. PM is a means of getting better results from the organization, teams and individuals by understanding and managing performance with in an agreed framework of planned goals, standards and competencies requirements. It is a process of establishing shared understanding about what is to be achieved and an approach to managing and developing people in a way that increases the probability that it will be achieved in a short and longer term. -Armstrong

FEATURES OF EFFECTIVE PERFORMANCE SYSTEM

Transparency Managed development Mutual respect Fairness and equity Organizational climate

BUILDING A BETTER MOUSE TRAP

There are some simple steps that can revolutionize the way that staff are managed throughout the year but they do require some effort on the part of the business however it can pay real dividends in staff motivation and improving performance. Catch people doing things right this is old advice and yet in many organizations it has been ignored or just become management mantra without embracing the fundamental concepts. Not only is it about identifying when people do a good job but actually rewarding it. If your organisation values innovation, then reward the innovators even if you dont like or agree with the innovation. No-one makes mistakes if you really want to create an outstanding appraisal process then start with the premise that there are no mistakes just learning experiences. This can sound a little silly, however if you believe that people do the best they can then this ceases to be a stumbling block and if someone makes a mistake it is probably a misunderstanding of their capability. PRISM/SMART Over the years much has been made of SMART (Specific, Measurable, Achievable, Realistic and Time bound) and these have worked for many however there are some things that are lacking from this and PRISM objectives are much more effective Personal For any objective to be effective it needs to be set by and for the individual. Many organizations like to set corporate objectives that everyone signs up to, however in reality unless there is a real motivation to then most individuals will just pay lip service to the idea. Objectives set by and for the individual are automatically bought in to by that individual. Realistic In the old SMART world objectives had to be Realistic and Achievable, in reality for something to be truly realistic it has to be achievable. In the PRISM world for a goal to be realistic it must be achievable. Interesting For anyone setting objectives for themselves or in the corporate space an objective that is interesting (and enjoyable) is far more likely to be fulfilled than something that an individual has to do. Specific As has been found by the entire goal setting experiments of the past 50 years a goal needs to be specific for it to be really effective. For a goal to be truly specific it needs to include a completion date and is therefore time bound. Measurable In PRISM terms this means what will you be, do or have when the objective has been reached. What tangible thing can you wave in front of people to show you have achieved your goal? Give real feedback This means telling people when things have gone badly or that their behaviour is causing a problem but it is not constructive criticism. If someone does a good job 95% of the time and for 5% of their time they make a hash of it then focus on the 95% rather than the 5%. Appraisal processes and appraisers should think carefully before they focus on the 5%-10% of an individual that is under performing lest they undermine the 90% that is performing. Perfection is not something that should be aimed for - improvement is. PM has gained a strategic role.

PARAMETERS TO APPRAISE PERFORMANCE

The general parameters for the measurement of employees performance are:

Speed i.e. process performance,

Accuracy and

Productivity of each process,

Although the measuring parameters are different for employees at different level, but the general classification of the above mentioned parameters for "Customer care Executives" and "Team leaders" are as follows:

Average Call Value (the query solved etc.)

Time per call

Average Handling Time (talk time and after call wrap up)

Adherence to Schedule (availability to take calls etc.)

Percentage of abandoned calls

Discipline

Attendance

MERIT RATING
Merit is Any admirable quality or attribute; "work of great merit"

Deservingness: the quality of being deserving (e.g., deserving assistance); "there were many children whose deservingness he recognized and rewarded" Deserve: be worthy or deserving; "You deserve a promotion after all the hard work you have done" A method for appraising the performance of an employee with respect to his or her job. It frequently serves as a basis for making pay adjustments, promotion decisions, or work reassignments. A common method which has long been in existence for measuring performance of employees in organizations is Merit Rating, where performance levels are judged according to various criteria. The performance management cycle is an ongoing process that includes: establishing expectations and desired outcomes; monitoring performance; providing feedback and coaching; and Assessing an employees work continuously throughout the year. The final annual steps in the performance management cycle include conducting performance evaluations, making merit pay determinations, and communicating with employees about their overall performance including their performance management rating.

THE PERFORMANCE MANAGEMENT PROCESS

The performance management process typically consists of four inter-related steps as follows: 1 Establish a common understanding between the manager (evaluator) and employee regarding work expectations; mainly, the work to be accomplished and how that work is to be evaluated. 2 Ongoing assessment of performance and the progress against work expectation. Provisions should be made for the regular feedback of information to clarify and modify the goals and expectations, to correct unacceptable performance before it was too late, and to reward superior performance with proper praise and recognition. 3 Formal documentation of performance through the completion of a performance and development appraisal form appropriate to the job family. 4 The formal performance and development appraisal discussion, based on the completed appraisal form and ending in the construction of a Development Plan.

Merit Rating for Employee Performance Categories and Merit Steps Performance Evaluation Categories Excellent, Commendable Satisfactory Unsatisfactory Merit Steps Excellent Commendable Steps 3 2

Satisfactory Unsatisfactory

1 0

1. EXCELLENT: Met the requirements for Commendable: Significantly surpasses expectations in all aspects of position/responsibilities demonstrate highest knowledge and skills. Achieved the highest possible levels of excellence in achievements and competence in teaching, research and service. Examples are: National publications, major research achievement, national recognition, made exceptional contributions to the department, college or university; considered a leader among colleagues. 2. COMMENDABLE: Met the requirements for Satisfactory: Successfully met, and in some areas, significantly exceeded established goals and objectives. Achieved high levels of achievements and competence in the areas of teaching, research and service. 3. SATISFACTORY: Met the established goals and objectives for the evaluation period; in a few instances, may have missed some and exceeded others but, on balance performs competently. 4. UNSATISFACTORY: Did not meet established goals and objectives for the evaluation period; has not performed competently or consistently. Experienced productivity and competence in one or more areas of teaching, research or service.

METHODS BEING USED TO ASSESS THE PERFORMANCE OF EMPLOYEES 1 STRAIGHT RANKING METHOD OF MERIT RATING
It is oldest and the simplest method of performance appraisal. It is the simple process of placing employees in a rank one after the other from highest to the lows based on their overall performance on the job. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.

2 GRAPHIC RATING SCALE

Definition of the rating scales The Rating Scale is a form on which the manager simply checks off the employees level of performance. This is the oldest and most widely method used for performance appraisal. The scales may specify five points, so a factor such as job knowledge might be rated 1 (poorly informed about work duties) to 5 (has complete mastery of all phases of the job).

Content of appraisal Quantity of work- Volume of work under normal working conditions Quality of work.-Neatness, thoroughness and accuracy of work Knowledge of job. Dependability.-Conscientious, thorough, reliable, accurate, with respect to attendance, relief, lunch breaks, etc. Judgment attitude- Exhibits enthusiasm and cooperativeness on the job Cooperation.-Willingness and ability to work with others to produce desired goals. Initiative. Rating scales Rating scales can include 5 elements as follows: Unsatisfactory Fair Satisfactory Good Outstanding .Advantages of the rating scales Graphic rating scales are less time consuming to develop. They also allow for quantitative comparison.

3 BEHAVIORALLY ANCHORED RATING SCALES (BARS)

BARS are designed to identify the critical areas of performance for a job, and to describe the more effective and less effective job behavior for getting results. Performance is evaluated by asking the rater to record specific observable job behaviors of an employee and then to compare these observations with a BARS. As a result, the supervisor is in a position to compare the employee actual behavior with the behavior that has been previously determined to be more or less effective. Proponents of BARS claim many advantages of this approach. They argue that such a system differentiates among behavior, performance, results and consequently is able to provide a basis for serving developmental goals for the employee. Because it is jobspecific and identifies observable measurable behavior, it is a more reliable and valid method for performance appraisal. Empirical studies of BARS have provided a fertile ground for study by both theorists and practitioners. By anchoring the scales behaviorally, the BARS approach was expected to produce more valid and reliable results by reducing measurement errors(leniency, halo effect, central tendency, etc.)

CHAPTER 3 REVIEW OF LITERATURE

LITERATURE REVIEW ARTICLE-1 Performance Management - Key Practices

January 25 2007 - A recent survey conducted by the Institute for Corporate Productivity (i4cp, formerly the Human Resource Institute) in conjunction with HR.com suggests that it is futile for an organization to seek the 'one silver bullet' that will revitalize its performance management (PM) system. Mark Vickers, senior analyst with i4cp said: "That bullet doesn't exist. That is, there is no single PM practice that can transform an ineffective system into a good one. Performance management systems are just that systems. They require the coordination of multiple key practices. The more of these practices that are in place, the more likely a performance management system is to be seen as effective."

Based on data from 1031 respondents, The 2006 Performance Management Survey indicates that there is significant scope for improvement in the performance management systems of many companies. Only 8 per cent said that their PM process contributes to individual performance in a significant way, 45 per cent said that it does contribute but requires improving, while 47 per cent were not sure if their PM process makes any contribution. While most companies are facing serious challenges with regard to their PM systems, many seem aware of which aspects are under-performing. Correlating performance management processes and the overall perceived effectiveness of their systems produced a list of nine key practices. The survey concludes that PM systems are more likely to be seen as effective when they include the following: 1. 2. 3. 4. 5. 6. 7. 8. 9. Plans for helping employees develop in the work period after the appraisal Ongoing goal review and feedback from managers Training for managers on how to conduct a performance appraisal meeting Metrics of the quality of performance appraisals Ways of addressing and resolving poor performance Appraisal information that isn't limited to the judgment of supervisors A PM system that is consistent across the whole organization Some form of multi-rater feedback Employees can expect feedback on their performance more often than once a year.

Kevin Oakes, i4cp's CEO, commented: "Performance management tends to be a work in progress. PM technology is increasing in popularity, but without a solid process already in place it's not going to make a significant difference. The good news is that the data shows that many companies today are getting more serious about implementing tighter performance management processes."

ARTICLE-2 How to Improve the Effectiveness of Performance Management and Appraisal by Overcoming the Root Cause of the Problem
By Julie Freeman This article explores why existing formal and informal approaches to employee performance management and appraisal (EPMA) tend to work well enough in theory, but fail to meet expectations in practice. It is split into two parts. Part 1 identifies the root cause of the problem and presents a solution for how it can be eliminated, or at least minimized. Part 2 explains in more detail how this solution works. Various suggestions for how it can be applied to meet differing individual or corporate needs are also outlined.

Part 1: Cause and Solution Current Situation There is a huge amount of frustration and dissatisfaction with existing methods of formal employee performance management and appraisal (EPMA). Regardless of whether the approach is based on rating scales, competency assessments, objectives, key performance indicators, or other performance standards, rankings, 360-degree feedback, or the balanced scorecard, the problem appears to be the same. While they all appear to work well enough in theory, to a greater or lesser extent they all tend to fail in practice. They just don't seem to measure up to the expectations that managers, employees, and organizations alike have for them. This appears to be the case even when the implementation of a given method is well managed and accompanied by proper training on how it should be used The problem is not limited to formal EPMA systems. Organizations encourage, even urge, their managers to talk informally with their employees about their performance on an ongoing basis. However, this rarely happens. Moreover, even if it does occur, the discussion itself and the results it achieves are often less than ideal. Despite our best efforts to date, managers still report that they are uncomfortable giving feedback and discussing performance with their employees, especially if poor performance is a factor. Consequently, they avoid the situation, or fudge the facts, whenever possible. The reasoning behind formal or informal EPMA is laudable; however, the methods we currently use do not achieve the results we want. The bottom line is that "open and honest" communication (the Holy Grail of appraisal generally) remains elusive. The problem is real and pervasive and every organization seems to be struggling with it. While it is difficult to quantify the negative effect that such a problem must have within an organization, we know (at least intuitively) that it is probably staggering. For example, my estimates indicate that, regardless of whether it is done formally or informally, only about 10 per cent of the managerial population have a natural ability to discuss performance with their employees in an effective way. Since it is likely that this population follows a normal statistical distribution it means that, for the remaining 90 per cent of managers, giving feedback and discussing performance with employees remains a task that is easier said than done. This appears to be the case regardless of whether or not they have previously received any training in how to do it properly. Aside from the obvious negative consequences that a problem of this magnitude has on an organization's productivity, the costs on a human level in terms of low morale and de-motivation may be equally devastating. While this cost is not necessarily quantifiable, it is definitely reflected in the bottom line. Not being 'open and honest' with employees about their performance, how they are perceived by management and what such a perception means for the future, raises some important moral and ethical questions around an organization's responsibility for, and often-stated commitment to, developing its employees. For example, is it right for managers to give acceptable formal appraisals in order to avoid bringing up poor performance issues and then to subsequently deal with them by ignoring, sidelining, downsizing, 'promoting", or transferring, employees without telling them why? Is it fair to expect any employee (including managers) to resort to guesswork to find out how they are perceived and what this means for their career?

Ultimately, is it a smart (or even an acceptable) organizational strategy to leave employee success to chance? To expect employees to succeed not as a result of clear information about how well they are they are doing, but rather in spite of it? Most books on management (including the recent bestseller, First, Break All the Rules: What the World's Greatest Managers Do Differently by Marcus Buckingham and Curt Coffman, 1999) advocate the importance and intrinsic value - at both an organizational and individual level - of helping employees to reach their full potential by assisting them to find their right 'fit' in (or out) of the organization. However, as these books point out, this is a managerial task, not an organizational one. Unfortunately, it is this basic inability of most managers to sit down and talk to employees honestly and effectively about their performance and potential that prevents them from following such advice. The process is stopped before it even starts.

The Root Cause of the Problem In my view, the root cause of the problem does not appear to lie in a lack of ability within the managerial population to honestly and accurately assess and evaluate an employee's performance and potential. The root cause of the problem is that, to a greater or lesser extent, the vast majority of managers cannot actually translate what they know about that performance into useful information and then communicate it to the employee in an effective and practical way regardless of the method they are asked to use. This is a fundamental problem because the success of any formal or informal approach to EPMA is ultimately dependent on the honesty and caliber of the information the employee receives in combination with the quality of the face-to-face discussion that should accompany it. Why does this problem exist? The cause of the problem seems to lie in the way in which managers, being human, form their opinions about their employees. This is how I believe that it happens: when managers form opinions about employee performance, they instinctively analyze both objective and subjective data collected from observing and interacting with them over time and in a wide variety of circumstances and situations. Objective data obviously include any measurable results produced by the employee that can be related to previously defined objectives or performance standards. Subjective data, on the other hand, include a myriad of less tangible, and therefore less measurable factors. Examples of these factors include perceptions around employee:

'Attitudes' (to anything and everything). Intelligence. Initiative. Political astuteness Interpersonal skills (how confident, comfortable, and tactful they are in dealing with peers, customers, senior managers, etc.). Personal grooming and attire.

Ability to think and work independently. Communication skills (express ideas, persuade others both verbally and on paper). Way of dealing with issues such as conflicts, disagreements, ambiguity. Ability to make people feel good and look good in front of others. Ability to work well in a team. Leadership ability.

It is the interpretation of this combined objective and subjective data that managers use to form the opinions, judgements and conclusions upon which they base their impressions about an employee's overall performance - i.e. how the employee is 'doing'. Examples include things like, "good worker,' "good interpersonal skills,' "politically naive,' "no leadership ability,' "not a team player,' "too edgy,' "no credibility with subordinates,' etc.

CHAPTER 4 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research methodology is a simple framework or plan for the study, which act as a guide in collection and analyzing the data. It is the blue print that is followed in the complete study. Thus, good research methodology ensures the completion of project efficiency and affectivity. Since there are many aspect of research methodology, the line of action has to be chosen from the variety of alternatives, to choose the suitable method through the assessment from various alternatives.

Research methodology gives the researcher an opportunity to put forward his argument for having opted for certain alternatives and also at the same time he can justify his ruling out some other possibility likes. Why research study has been undertaken, how the research problem has been formulated what data has been collected, what particular technique if analyzing the data has been used and lot of similar type question are usually answered when we talk of research problem in study.

OBJECTIVES OF STUDY

Any survey begins with stating the objectives of the study; therefore, the first step in the survey analysis deals with the objectives. Next, the methodology adopted to collect the information required will be dealt with, that is, the survey design will be described. General, data sources include secondary and primary sources. Secondary can provide a range of information and should be consulted first. If they do not provide necessary information to the research problem then primary data is to be collected.

THE MAIN OBJECTIVES 1 To study the implications of an effective performance appraisal system on the productivity of employees and the organizational performance as a whole. 2 To study the potential areas for the scope of improvement in the current system and thereby in the organizational performance.

RESEARCH DESIGN

The research design used by me is exploratory research design as the exploratory research often relies on secondary research such as reviewing available literature and/or data, or qualitative approaches such as informal discussions with consumers, employees, management or competitors, and more formal approaches through in-depth interviews, focus groups, projective methods, case studies or pilot studies. The Internet allows for research methods that are more interactive in nature. Exploratory research or formulative research: The objective of exploratory research is to gather preliminary information that will help define problems and suggest hypotheses.

SAMPLING DESIGN

In sampling I have used non-probability sampling technique in which I have used convenience sampling, as I have taken only the customer care executives of the company, as I had limited time and cost constraints. The population size was around 100 out of which the sample size taken by me was 50.

SOURCES OF DATA COLLECTION

1 PRIMARY DATA
Primary data is the data collected specially for a specific purpose. The methods used for its collection are personal discussion, interviews, observation and questionnaire etc. The method used in collecting primary data in my research was questionnaire. In this I asked a set of predetermined questions already in a predefined order, the answers given by the respondents were used to fill up the questionnaire.

2 SECONDARY DATA
Secondary data consists of information that already exists somewhere and was collected for another purpose, where may not be the same as the purpose of research. The secondary data provide a starting point for research and offer advantage of low cost and ready availability. Secondary data was being collected by me with the help of newspapers, journals, magazines etc.

QUESTIONNAIRE
A questionnaire was prepared which consisted of open-ended questions with multiple choices. The questionnaire used was structured type of questionnaire. It was prepared taking into account the factors, which were to be analyzed to know the process of performance management This method was preferred as it is economical, given more information and the response is very good.

CHAPTER 5

LIMITATIONS

LIMITATIONS

1 Time was the major limitation because of which I wasnt able to know how the team leaders or the higher level management were being appraised.

2 If the factor included in the assessment is irrelevant, the result of merit rating will not be accurate. 3 Different qualities to be rated may not be given proper weight age in certain cases. 4 Supervisors often do not have critical ability in assessing the staff. Sometimes, they are guided by their personal emotions a likes. So the ratings are likely to be biased.

CHAPTER 6 DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS

0% 10% 0%

0%
1 2 3

Question No. 18
0% 20%

90%

4 5
1 2 3 4

30%

10%

40%

This pie chart shows about 90% of employees was aware of current

performance management System & 10% were not aware.

5%

0% 15%

1 2 3 4 5

80%

About 80% of employees performance is assessed by graphic rating scale, 15% through ranking method and 5% are not aware of the method.

2%

2% 3% 28% 65%

1 2 3 4 5

Above 60% of the employees agree that self appraisal system proves to be effective & rest of employees does not completely agree with it.

10% 16%

2% 42%

1 2 3 4

30%

More than 40% employees agree that skill possessed by a supervisor vary , 30% are partially agree and 16% are Neutral ,less than 15% are not agree with its.

2% 10% 10% 78% 0%

1 2 3 4 5

About 78% of employees say that appraiser and appraisee should be responsible for ensuring objectivity and reducing biasness in the Performance management system, 10% say appraiser & appraisee and

peer & 10% says appraiser & appraisee and peer & subordinate ,2% did not fill the questionnaire.

0% 10% 20% 70% 0%

1 2 3 4 5

About 70% of employees agree that feedback is beneficial for improving their performance, 20% partially agree and 10% are neutral.

10% 24%

0%

1%

1 2 3 4 5

65%

65% of the employee accepts that current performance management system is

an effective tool for evaluating the employee performance,24% partially agree with this and 10% are neutral.

0% 0% 20% 80% 0% 1 2 3 4 5

About 80% of employee accepts that current performance management System

reflect the training need, 20% did not accept this.

10%

0% 40%

1 2 3

40% 10%

4 5

40% of the employees consider that performance management system helps in

deciding promotion, 10% says it helps in deciding incentives and 40% agree with training and development, 10% are accepting the programme in succession planning.

10% 12%

1%

1 2 3 4 5

52% 25%

10

According to 52% of employees,

performance management system ensure

recognition to talented employees in term of promotion ,rewards and others, 25% partially agree and 12% are neural ,10% are disagree.

10% 10%

0%

1 2 3

25%

55%

4 5

11

More than 55% of employees completely agree that the existing performance

management system helps in wholesome development of employee and 25% are partially agree,10% disagree, 10% are neutral.

0% 10%

0% 0%

1 2 3 4

90%

12

About 90% of the employees are completely satisfied with the current

performance management system, rest 10% are not satisfied with the current performance management system.

CHAPTER 7 FINDINGS AND RECOMMENDATIONS

FINDINGS

1 The performance management system is being reviewed time to time to improvise the ways to assess the effectiveness, potential, development need & career sketch of the individual for the management to formulate HRD programme to meet organization needs.

2 There is problem in collecting the feedback forms, as more often the forms were not received on time. The main problem is therefore of coordination. 3 Manager has to perform a very daunting list of time consuming tasks standing with recalling which worker need to be reviewed each month, arranging appraisal meeting with them, collection of the relevant performance data, filling out the appraisal forms & documenting the employees performance.

4 The culture of confidentiality persists due to which performance management will never be a readily undertaken exercise. Adverse remarks are communicated to employees in writing confidentially by the reporting officers.

RECOMMENDATIONS

1 The company should appraise the performance of the employees by giving them some incentives, which motivate them to work to their fullest capacity and to motivate them to work more and show good and better results. 2 For the employees the company can increase their salaries, give them pension schemes, and provide them the medical facilities etc because they want financial help from the company to ensure their proper living.

3 They should keep changing the raters for the performance appraisal system from time to time so that they dont become bias at anytime for any employee. 4 The method of the company should be changed periodically so that the employees have no chance to complain for the method. 5 The criteria decided upon which the performance has to be rated should not be fixed it should be changed from time to time. 6 The standards of the rating should be very specific, clear and concise. 7 There should be the feeling of teamwork in the organization 8 The system should be cost effective and it should suit the budget of the company.

CHAPTER 8 CONCLUSION

CONCLUSION

Performance Management is a term used to improve team performance, based on the principles of measurement, appraisal, and action and monitoring. However, it can be manifest in very different forms depending on whether the aim is to further improve good performers, or deal with underperformance. Performance Management can also apply to individuals, teams, groups or organizations. Performance appraisals have become a tool of much importance in today's management scenario. This could be used best only with the help of objective and fair HR practices. The outputs of which could be used for Organization development rather than for mere employee efficiency improvement. As a result developing employee performance furthers the mission of the organization and enhances the overall quality of the workforce within the Organization by promoting a climate of continuous learning and professional growth; helping to sustain employee performance at a level which meets or exceeds expectations; enhancing job- or career-related skills, knowledge and experience; enabling employees

to keep abreast of changes in their fields; promoting affirmative action objectives; and motivating employees. Performance development plans may be considered at each stage of the performance management process. An important component of the performance management process is development of employees' work-related skills, knowledge and experience. The development process offers another opportunity for the employee to work collaboratively to improve or build on his or her performance and to contribute to organizational effectiveness.

ANNEXURE STUDY OF PERFORMANCE MANAGEMENT SYSTEM

(Please Mark Your Choice) Personal Information :1. Name :. 2. Sex : (a. Male, (b. Female

3. Department : .

1.

Are you aware with the current Performance management system of VODAFONE?

(a)

Yes

(b)

No

2.

Performance management Of Employee Is Assessed By (a) (c) Graphic rating scales (b) Ranking method BARS (d) Not aware

3.

Self Appraisal System proves to be effective while appraising the appraisee (a) (c) Agree Neutral (b) (d) Partially agree Disagree

4.

Skill possessed by an Appraiser varies as the moves from one grade to another. (a) (c) Agree Neutral (b) (d) Partially agree Disagree

5.

Who in your opinion should be the responsible for ensuring objectivity and reducing biasness the Performance management system? (a) (b) (c) Appraiser and Appraisee. Appraiser, Appraisee & peer. Appraiser, Appraisee, peer, & subordinates.

6.

Feed back is beneficial for improving your performance (a) (c) Agree Neutral (b) (d) Partially agree Disagree

7.

Current Performance management system is an effective tool for evaluating the employees performance (a) (d) Agree Neutral (b) (d) Partially agree Disagree

8.

Does current Performance management system reflect the training need of an employee? (a) Yes (b) No

9.

What is your opinion is the relevance Performance management system? Deciding promotion (b) Deciding incentives

(c) Training & development (d)Succession planning

10.

The existing Performance management system ensures due recognition talented employee in terms of promotion, rewards and others (a) (c) Agree Neutral (b) (d) Partially agree Disagree

11

Do you think that existing Performance management system is help full in wholesome development of employee? (a) Agree (d) Neutral (b) (d) Partially agree Disagree

12.

Are you satisfied with the current Performance management system (a) Yes (b) No

Give your suggestion for effective implementation of Performance management system in VODAFONE.

BIBLIOGRAPHY BOOKS
Manuals And Files Of VODAFONE Dick Grote(e-book)The performance appraisal question answer book: A survival guide for managers Chadha,P.(2003). Performance Management: Its About Performing Not Just Appraising.

WEB. Sites

www.Vodafone.com www.google.com / performance management system.