Performance appraisal at

IDBI FEDERAL
Submitted to:
Ms. Piyushi Verma
Manager Distribution
IDBI Life Insurance Co. ltd

Submitted by:
T.Sujay
BBA-3rd year
IIMC
Hyderabad.

I. ACKNOWLEDGEMENT:

I wish to express sincere thanks to Ms. Piyushi Verma for providing us an opportunity to
work in IDBI Federal Life Insurance co. Ltd. I would also like to express my gratitude to Ms.
Piyushi Verma (My company guide) for providing valuable feedback and intense support
relentlessly throughout the project.

I sincerely express my gratitude to Mr. Srikanth (My faculty guide), for giving his
valuable guidance, healthy support and suggestions to make the project a successful one. I am
really thankful to my parents and friends for helping me to study and giving feedback in all
possible ways to make me feel comfortable during my project. There have been numerous
influences, big and small that have helped me to work on my project successfully. Regardless of
the source, I thank all those who may have contributed to this project.

II. PREFACE:

Human Resource Research is one of the most important functions in business. This is
required for making continual improvements in the business process by understanding the
problem in a better manner. And in order to understand the things in a better manner we need to
research on them and find out what are the optimal solutions to a problem.

Human resource research can be carried out in any of the functions of management be it
Finance, Marketing or Human Resources (HR).
Thus its a process involving problem identification, diagnosing the problem, finding
alternative solutions and then providing the best solution so that the problem can be fairly dealt
with. However in the process there is a lot of learning which I got by performing Marketing
research In IDBI Federal Life Insurance

III. DECLARATION:

This is to certify that the projects titled: Performance Appraisal regarding IDBI
FEDERAL LIFE INSURANCE COMPANY Products is a bonafide work completed by
T.SUJAY, Enrolment Number 59, in partial fulfilment of the requirements of the BBA
program and submitted to IIMC College.

I declare that this project is a result of my own efforts and has not been copied
from any source. References from which information has been taken have been given in
the references section. This work has not been submitted earlier at any other university or
institute for the award of the degree.

T.SUJAY
59
IIMC

INDEX
Contents
Page No
1.0 EXECUTIVE SUMMARY: ..................................................................................................... 6
2.0 INTRODUCTION: ................................................................................................................... 7
2.1 Description of the Project: ........................................................................................................ 7
2.2 Objectives of the study.............................................................................................................. 7
2.3 Needs of the Study .................................................................................................................... 8
2.4 Scope of the Study .................................................................................................................... 9
2.5 Limitations of the Study............................................................................................................ 9
3. ECONOMIC INDUSTRY ANALYSIS .................................................................................. 10
3.1. Introduction to Insurance Industry: ........................................................................................ 10
3.2 Types of Insurance: ................................................................................................................. 10
3.3 Insurance Sector in India: ....................................................................................................... 11
3.4 Indian Insurance Industry at present: ...................................................................................... 12
3.5 Major Players: ......................................................................................................................... 12
3.6 Regulatory Issues: ................................................................................................................... 15
3.7 Critical Success factors: .......................................................................................................... 17
4.0 COMPANY ANALYSIS ........................................................................................................ 18
4.1. INTRODUCTION: ................................................................................................................ 18
4.2. SPONSORS OF IDBI FEDERAL LIFE INSURANCE COMPANY LTD: ......................... 19
VALUES: .............................................................................................................................. 20
4.3. PRODUCTS OF IDBI FEDERAL: ....................................................................................... 20
Incomesurance:- ............................................................................................................... 20
4.4 Promotional Practices: ............................................................................................................ 22
5. QUESTIONNAIRE FOR PERFORMANCE APPRAISAL: ................................................... 38

1.0 EXECUTIVE SUMMARY:

Insurance is the backbone of a countrys risk management system. Risk is an inherent part of our
lives. The insurance providers offer a variety of products to businesses and individuals in order
to provide protection from risk and to ensure financial security. They are also an important
component in the financial intermediation chain of a country and are a source of long term
capital for infrastructure and long-term projects. Through their participation in financial markets,
they also provide support in stabilizing the markets by evening out any fluctuations. The
availability of insurance can mitigate the impacts of risk by providing products which help
organizations and individuals to minimize the consequences of risk and has a positive effect on
industry growth as entrepreneurs are able to cover their risks.
The insurance business is broadly divided into life, health, and non-life insurance.
Individuals, families, and businesses face risks of premature death, depletion in income because
of retirement, health risks, loss of property, risk of legal liability, etc. The insurance companies
offer life insurance, pension and retirement income, property insurance, legal liability insurance,
etc., to cover these risks. In addition, they offer several specialized products to meet the specific
needs and requirements of businesses and individuals.
Businesses also depend on these companies for various property and liability covers, employee
compensation, and marine insurance.
I, T.sujay , have been working with IDBI Federal Life Insurance Company Ltd, as a
HR Intern for the past 2 months. IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI
Bank, Indias premier development and commercial bank, Federal Bank, one of Indias leading
private sector banks and Ageas, a multinational insurance giant based out of
Europe. In this venture, IDBI Bank owns 48% equity while Federal Bank and Ageas own 26%
equity each. In the past three months, I have been through an intense learning mode. With each
continuing month, I gained more experience and more knowledge. While working with the
organization, I completed a project titled: Consumer Behavior in respect to insurance
purchase. The study aims at deriving plausible strategic, tactical, operational ways of
marketing as causes that effect buy and re-buy of insurance products/plans w.r.t. the brand IDBI
Federal Life Insurance Co. Ltd., thereby contributing to the delivery of sustainable value to all
stakeholders. This is done by understanding and leveraging on, the changing buying behavior of
consumers in the age group of 18 years to 65 years towards Life Insurance product/service
offerings. The study however is conducted only in the Hyderabad region. These three months
proved to be a great experience for me. I learnt many valuable lessons and will take them
forward and apply them in the future.

2.0 INTRODUCTION:
2.1 Description of the Project:
A performance appraisal (PA) is a method by which the job performance of an employee is documented
and evaluated. Performance appraisals are a part of career development and consist of regular reviews of
employee performance within organizations.
A performance appraisal is a systematic and periodic process that assesses an individual
employees job performance and productivity in relation to certain pre-established criteria and
organizational objectives. Other aspects of individual employees are considered as well, such
as organizational citizenship behavior, accomplishments, potential for future improvement, strengths
and weaknesses, etc. To collect PA data, there are three main methods: objective production, personnel,
and judgmental evaluation. Judgmental evaluations are the most commonly used with a large variety of
evaluation methods. Historically, PA has been conducted annually (long-cycle appraisals); however,
many companies are moving towards shorter cycles (every six months, every quarter), and some have
been moving into short-cycle (weekly, bi-weekly) PA. The interview could function as
providing feedback to employees, counseling and developing employees, and conveying and
discussing compensation, job status, or disciplinary decisions.
Performance management systems are employed to manage and align" all of an
organization's resources in order to achieve highest possible performance. How performance is
managed in an organization determines to a large extent the success or failure of the organization.
Therefore, improving PA for everyone should be among the highest priorities of contemporary
organizations.

2.2 Objectives of the study

Providing Feedback. Providing feedback is the most common justication for an organization
to have a performance appraisal system. Through its performance appraisal process the
individual learns exactly how well he/she did during the previous twelve months and can then
use that information to improve his/her performance in the future. In this regard, performance
appraisal serves another important purpose by making sure that the bosss expectations are
clearly communicated.
Facilitating Promotion Decisions. Almost everyone in an organization wants to get ahead. How
should the company decide who gets the brass rings? Performance appraisal makes it easier for
the organization to make good decisions about making sure that the most important positions are
lled by the most capable individuals.

 Encouraging Performance Improvement. How can anyone improve if he doesnt know how
hes doing right now? A good performance appraisal points out areas where individuals need to
improve their performance.
Motivating Superior Performance. This is another classic reason for having a performance
appraisal system. Performance appraisal helps motivate people to deliver superior performance
in several ways. First, the appraisal process helps them learn just what it is that the organization
considers to be superior. Second, since most people want to be seen as superior performers, a
performance appraisal process provides them with a means to demonstrate that they actually are.
Setting and Measuring Goals. Goal setting has consistently been demonstrated as a
management process that generates superior performance. The performance appraisal process is
commonly used to make sure that every member of the organization sets and achieves effective
goals.
Improving Overall Organizational Performance. This is the most important reason for an
organization to have a performance appraisal system. A performance appraisal procedure allows
the organization to communicate performance expectations to every member of the team and
assess exactly how well each person is doing. When everyone is clear on the expectations and
knows exactly how he is performing against them, this will result in an overall improvement in
organizational success.

2.3 Needs of the Study

Provide information about the performance ranks basing on which decision
regarding salary fixation, confirmation, promotion, transfer and demotion
are taken.
Provide feedback information about the level of achievement and behaviour of subordinate. This
information helps to review the performance of the subordinate, rectifying performance
deficiencies and to set new standards of work, if necessary.
Provide information which helps to counsel the subordinate.
Provide information to diagnose deficiency in employee regarding skill,
knowledge, determine training and development needs and to prescribe the
means for employee growth provides information for correcting placement.
To prevent grievances and in disciplinary activities.

2.4 Scope of the Study

The project explains the meaning of Performance Appraisal, different methods used to evaluate
the performance of employees, its effective implementation and the benefits of the system.
It also aims at understanding the problems associated with performance appraisal and suggests
measures to be adopted to overcome these issues.
The project throws light on the concern areas for different people involved in the appraisal
process and attempts to find out ways to overcome those problems.
Overall objective of the project is to understand the effectiveness of performance appraisal
system.

2.5 Limitations of the Study

The presence of Halo Effect in evaluation of employees is the biggest weakness of this method.
A high rate is given to favored employees whereas unfriendly employees are rated low.
If the standards are not clear, the supervisors may follow different standards for different
employees.
In order to give very low or very high rating, the top managers are required to give reasons to
justify the rating. The most common error committed in performance appraisal is to give average
rating to all employees. Moreover, low rating antagonizes the subordinates.
The evaluator tries to look those qualities in subordinates which he himself possesses. Those
who show the similar characteristics are rated high.

3. ECONOMIC INDUSTRY ANALYSIS

3.1. Introduction to Insurance Industry:

Insurance is a form of risk management that shields insured from the risk of any uncertain of
unfortunate events. In simple terms insurance can be defined as transfer of risk from one entity to
another in exchange of the payment. The transaction consists of insured assuming a guaranteed small
loss in the form of payment to the insurer in exchange of the promise to compensate insured in case of
any kind of financial loss to insured. In a laymans term, insurance is a guard against monetary loss
arising on the happening of an unforeseen event. In developing countries like India insurance sector still
holds lot of potential which need to be tapped.

3.2 Types of Insurance:

Insurance can be classified into three categories:
Life Insurance:
Life Insurance is a concord between the insurer and the policyholder, where insurer promises to
pay beneficiary designated sum of money upon death of the insured person. Life Insurance covers
number of contingencies like Death, Disability, and Disease.
General Insurance:
General Insurance is a non-life insurance policy including automobile and homeowner policy.
General insurance specifically consist of non- life insurance. It includes property insurance,
liability insurance and other forms of insurance. Fire and Marine insurance are called property
insurance.
Social Insurance:
Social insurance is another type of insurance for weaker section of the society. It provides
protection to weaker section of the society who are unable to pay premium. Industrial Insurance,
sickness insurance, pension plan, disability benefits, unemployment benefits are some the type of
social insurance.

3.3 Insurance Sector in India:

Indian insurance sector has gone through different phases of competition, from being an open
competitive market to a nationalized market and then again getting back to liberalized market. Indian
insurance sector has witnessed complete dynamism in past few centuries.
Insurance sector in India has a deep- rooted history. Its mention has been found in writings of Manu
(Manusmriti), Yagnavalkya (dharmashastra) and Kautilya (Arthshastra). Ancient Indian history has
preserved traces of insurance in the form of marine trade loans and carrier contracts.
Insurance industry in India is governed by Insurance Act of 1938, Life Insurance Corporation Act of
1956 and General Insurance business Act, 1972, Insurance Regulatory and Development Authority
(IRDA) Act of 1999 and other related acts. Insurance industry in India is considered as an industry with
big potential market. One of the reason that India is seen as huge potential market is because of its huge
population and untapped market area of this population. In terms of population India has an immense
potential expanding their life insurance cover. Majority of people in India are unaware of the functions
and benefits of Insurance because of which insurance sector has a bright future in India. But it is
relevant to consider factors like different varieties of social structure, urban and rural composition other
than very important factors like age, sex, income level, literacy level. Making assessment of Life
Insurance potential of India is very difficult task due to wide variance in every aspect of Indian
circumstances and without a refined analysis any estimate would be meaningless.

3.4 Indian Insurance Industry at present:

Life Insurance Corporation (LIC) had the monopoly over the market till the late 90s when the insurance
sector in India was opened for private players. Before that there were only two state insurer, one was
LIC (Life Insurance Corporation of India) and GIC (General Insurance corporation of India).
Indian insurance sector at present has undergone many structural changes in 2000. The Government of
India has liberalized the insurance sector in 2000 with IRDA (Insurance Regulatory and development
authority) lifting all entry restriction of foreign players with a specific limit on direct foreign ownership.
Under the current guideline 26% of equity cap is there for foreign players in an insurance company and
proposal is being given to increase this limit to 49%. Post liberalization insurance industry in India have
come a long way and today it stands as one of the most competitive, challenging and exploring industry
in India. Increased use of new distribution channels are in limelight today due to entry of private
players. In the long run the use of these distribution channels and modern IT tools has increased scope
of the insurance industry. Also the changing economics patterns, changing political scenario, modern IT
tools will eventually help in reshaping future of Indian financial market and Life Insurance business in
the country.

3.5 Major Players:

Various players in Indian Life insurance are given below:
1. Life Insurance Corporation of India
2. IDBI federal Life Insurance Co. Ltd
3. Bajaj Allianz Life Insurance Co. Ltd
4. Birla Sun Life Insurance Co. Ltd
5. HDFC Standard Life Insurance Co. Ltd
6. ICICI Prudential Life Insurance Co. Ltd
7. ING Vysya Life Insurance Co. Ltd
8. Max New York Life Insurance Co. Ltd
9. Met Life India Insurance Co. Ltd
10. Kotak Mahindra old Mutual Life Insurance Ltd
11. SBI Life Insurance Co. Ltd
12. Tata AIG Life Insurance Co. Ltd
13. Reliance Life Insurance Co. Ltd
14. Aviva Life Insurance Co. India Pvt. Ltd
15. Sahara India Life Insurance Co. Ltd
16. Shriram Life Insurance Co. Ltd
17. Bharti AXA Life Insurance Co. Ltd
18. Futute Generali Life Insurance Co. Ltd
19. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd

20. AEGON Religare Life Insurance Co. Ltd

21. DLF Pramerica Life Insurance Co. Ltd
22. Star Union Dai-ichi Life Insurance Co. Ltd

Latest market share of all insurance companies as of march 2011:

3.6 Regulatory Issues:

Insurance Regulatory and Development Authority (IRDA) is a national agency of government of India.
It was formed by an act of Indian Parliament known as IRDA Act 1999 which was amended in 2002 to
incorporate some upcoming requirement. It is responsible for protecting the interest of policy holders,
to regulate and promote orderly growth of Insurance Industry in India. To achieve this objective IRDA
has taken following steps:

 IRDA has notified protection of policyholders Interest Regulation 2001 to provide for: policy
proposal document is in easily understandable language; claims procedure in both life and nonlife; setting up grievance redress machinery; speedy settlement of claims and policy holders
servicing. The regulation also provides for payment of interest by insurer for delay in settlement
of claims.
Solvency margins are to be maintained by the insurer so that they can be in a position to meet
their obligation towards the policyholder with respect to payment of claims.
The Insurance Company has to clearly disclose the benefits, terms and condition under the
policy.
The advertisement issued by the insurer should not mislead the insuring public.
Proper grievance redress machinery should be set up in the head office and all the other offices
by the insurer.
If any complaints are received by the policyholder with respect to the services provided by the
insurer under the insurance contact, then the authority takes up with the insurer.
Insurer has to maintain separate account related to the fund of Policyholder. The funds of the
policyholder should be retained within the country.
According to the new regime, Insurance companies will have to exposure to rural and social
sector.

3.7 Critical Success factors:

Post Liberalization Insurance industry in India has become very competitive. With private players
entering into the India market making the market lot more competitive. Insurance industry in India has
become highly competitive with different companies and individual agents competing against each other
to gain higher market share. In order to gain higher market share companies have to differentiate
themselves from others. Companies can differentiate themselves in the market by using a number of
critical success factors:
Product Quality:
One the most important factor that differentiates companies is by the quality of product it offers.
Quality of product instills a confidence in the customer that the product offered by the company
is better. Better the quality of product, more successful is the company.
Developing relationships with the customer:
Insurance Industry is a highly competitive industry. In order to gain the market share first
priority is to be given to the customer. Range of product and services should be designed to give
the customer what he desires.

Market Segmentation:
Greater market segmentation should be done in which target audience should be divided into
homogenous groups and products and services should be targeted towards such market. This
would tie company to their client by customized combination of coverage, easy payment plan,
risk management advice and quick claim handling.
Designing new strategies:
Insurance Industry cannot be satisfied with consolidation of their existing market, but have to
achieve future growth and penetration. Companies must focus on new distribution channels,
strengthening their existing point of services, direct contact with their ultimate customer, refresh
their marketing setup, new comers should focus on tapping the market which is left unexploited
by public sector companies.
Motivating sales force:
Sales force is one the major strength that the company has that could differentiate them from
their competitors. A good sales force can do wonders to the future of the company, because of
which a proper motivation of sales force is very important for the company. Life Insurance
Company should constantly involve in motivating their sales force so that they can meet their
target on time.

 Use of technology:
Technology plays a very important role in the success of the company. Internet based Life
insurance will help companies to reduce time and transaction cost and also improves quality of
services to its customer.

4.0 COMPANY ANALYSIS

4.1. INTRODUCTION:
IDBI Federal Life Insurance Co. Ltd., is a joint venture between three financial companies
development and commercial bank, IDBI Bank, Indias private sector bank, Federal Bank and European
insurer Ageas (formerly Fortis), which was formed on March 2008. In this venture, IDBI Bank owns
48% equity while Federal Bank and Ageas own 26% equity each.
At IDBI Federal, we endeavor to deliver products that provide value and
convenience to the customer. Through a continuous process of innovation in product and service
delivery we intend to deliver world-class wealth management, protection and retirement solutions to
Indian customers. Having started in March 2008, in just five months of inception we became one of the
fastest growing new insurance companies to garner Rs 100 Cr in premiums. The company offers its
services through a vast nationwide network across the branches of IDBI Bank and Federal Bank in
addition to a sizeable network of advisors and partners. As on 29th February, 2012, the company has
issued over 3.56 lakh policies with over Rs 20220 Cr in Sum Assured.

4.2. SPONSORS OF IDBI FEDERAL LIFE INSURANCE COMPANY LTD:

IDBI Bank Ltd. Establish on July 01, 1964 (under the Companies Act, 1956) to support Indias
industrial backbone. Today, it is amongst Indias foremost commercial banks, with a wide range
of innovative products and services, serving retail and corporate customers in all corners of the
country from 973 branches and 1535 ATMs. The Bank offers its customers an extensive range of
diversified services including project financing, term lending, working capital facilities, lease
finance, venture capital, loan syndication, corporate advisory services and legal and technical
advisory services to its corporate clients as well as mortgages and personal loans to its retail
clients.
Federal Bank is one of Indias leading private sector banks, with a dominant presence in the
state of Kerala. It has a strong network of over 950 branches and 1002 ATMs spread across
India. The bank provides over four million retail customers with a wide variety of financial
products. Federal Bank is one of the first large Indian banks to have an entirely automated and
interconnected branch network. In addition to interconnected branches and ATMs, the Bank has
a wide range of services like Internet Banking, Mobile Banking, Tele Banking, and Any Where
Banking, debit cards, online bill payment and call centre facilities to offer round the clock
banking convenience to its customers.
Ageas is an international insurance company with a heritage spanning more than 180 years.
Ranked among the top 20 insurance companies in Europe, Ageas has chosen to concentrate its
business activities in Europe and Asia, which together make up the largest share of the global
insurance market. These are grouped around four segments: Belgium, United Kingdom,
Continental Europe and Asia and served through a combination of wholly owned subsidiaries
and partnerships with strong financial institutions and key distributors around the world. Ageas
operates successful partnerships in Belgium, UK, Luxembourg, Italy, Portugal, Turkey, China,
Malaysia, India and Thailand and has subsidiaries in France, Germany, Hong Kong and UK. It is
the market leader in Belgium for individual life and employee benefits, as well as a leading nonlife player, through AG Insurance, and in the UK.

VISION:
To be the leading provider of wealth management, protection and retirement solutions that meets the
needs of our customers and adds value to their lives.
MISSION:
To continually strive to enhance customer experience through innovative product offerings, dedicated
relationship management and superior service delivery while striving to interact with our customers

in the most convenient and cost effective manner. To be transparent in the way we deal with our
customers and to act with integrity.
VALUES:
Transparency: Crystal Clear communication to our partners and stakeholders.
Value to Customers: A product and service offering in which customers perceive value.
Rock Solid and Delivery on Promise: This translates into being financially strong, operationally
robust and having clarity in claims.
Customer-friendly: Advice and support in working with customers and partners.
Profit to Stakeholders: Balance the interests of customers, partners, employees, shareholders and the
community at large.

4.3. PRODUCTS OF IDBI FEDERAL:

At IDBI Federal, its our constant endeavor to create innovations that create value for our customers.
These innovations are brought to life through our wide array of products that fit the varying financial
and investment needs at different stages of life.
Childsurance:IDBI federal childsurance savings protection insurance plan: a non-linked participating endowment plan
that ensures your childs future financial needs are fulfilled.
Lifesurance:IDBI federal lifesurance savings protection insurance plan is a fixed term non-linked participating plan
that provides you the twin benefits of long-term savings and life cover.
Incomesurance:Incomesurance guaranteed money back is a plan which will enable you to stop predicting the future, and
guarantee it instead!

 Loansurance:IDBI Federal Loansurance, group insurance plan, is a group credit protection plan that helps product
your borrowers assets and savings and ensures that their debt does not become a burden on their family
in their absence.

Microsurance:IDBI Federal Group Microsurance Plan provides affordable life insurance cover to groups. The plan is
extremely useful to micro finance institutions, self help groups and NGOs.
Termsurance:A pure group term plan designed to cater to a wide variety of formal and informal groups by providing
them with basic life insurance protection.
Wealthsurance:The IDBI federal wealthsurance, suvidha growth insurance plan, is a simple unit linked plan that helps
you to build wealth with ease and even protects your loved ones with a life cover in your absence.
Bondsurance:
Bondsurance is designed for customer looking for guaranteed returns which will not get affected by
financial market conditions. It offers guaranteed return on investment along with life insurance
cover.

4.4 Promotional Practices:

IDBI federal Life Insurance Co Ltd is been involved in number of promotional
practices. IDBI uses
different modes of advertisements for promoting their products. Following are the different modes
through which IDBI federal promotes its products:
Print Media:
Print media is one the most reliable, cost effective and easy mode of advertisement to reach the
masses. Main ways of advertising via print media are:
1. Newspaper:
Paper

Pages

Cost (in Rs.)

The Economic
Times
Times of India

3rd

320 per sq. cm

3rd

320 per sq. cm

The Hindu

1st

400 per sq. cm

2. Pamphlets:
Pamphlets are distributed across India at least 5 times in a month without any cost. This
distribution is mainly done to create maximum awareness about the products/services.
3. Magazines:
There is no specific magazine in which advertisement is given. Magazines are selected based
on their sales and reputation like outlook, money etc.
Television:
Television is another mode of advertisement used by IDBI federal Life Insurance Co. Ltd. Like
print media television is also very popular mode of advertisement which easily grasps attention
of masses. Mainly the advertisements of IDBI federal are shown on Cricket channels, star
channels because of their popularity.

Main promotion is done in the month of February and March to:

Highlight tax benefits
To combat competition as all the competitor insurance companies would advertise during
this time at great frequency.

Also the companies will soon start displaying their advertisement on satellite TV like Sun
network etc.
Following are the cost associate with running the TVC:
Region/ Channel

Cost (in Rs.)

Duration/ SLOT

Tamil Nadu

45,000

10 seconds

Local Channels

6000-8000

10 seconds

Cricket channels

60,000 onwards

10 seconds

Word of Mouth: A strong network of distributors and parent advisors also helps a lot in
promoting products/ services of IDBI federal by Word of mouth.
Online:
A viral campaign also runs on the internet by wherein flash videos of working of product are
explained in a very humorous manner. This video is shown on www.bosskaboss.com
Hoarding:
As of now, total number of Hoardings which are put up in Hyderabad region counts to be 17.
Cost (in Rs.)
Time Lease
4,00,000

3 months

Local Events:
Some are also created in and out of the city by IDBI federal to create more awareness about the
IDBI federal and free gifts were given wherein local marketing people interact with the prospects
and try to gauge their financial needs and respectively pitch the products.
The overall costs associated with such an events totals to Rs. 2, 00,000 pm. Such events are
generally conducted in apartments and schools etc.

4.5 IDBI Annual Report 13-14

CORPORATE OVERVIEW PERFORMANCE SNAPSHOT

In delivering superior performance

The result is a robust investment management philosophy that generates trust and grows Assets Under
Management (AUM). AUM has surged by 18% from ` 2,964 crore to ` 3,509 crore during FY 2013-14.

DIRECTORS REPORT For the year ended 31st March, 2014

STATUTORY REPORTS

Risk Management Framework

Risk Management comprises of the development, implementation and monitoring of financial and
operational strategies for assessing, mitigating insurance and operational risks to increase the value of
IDBI Federal Life Insurance Company Limited. It enhances capabilities to align risk appetite and
strategy to link risk with growth and return. It enables the company to make timely risk response
decisions to minimize operational surprises and losses.

Methods of Performance Appraisal at IDBI Federal.

1) Individual Evaluation Methods: Under the individual evaluation methods of merit rating,
employees are evaluated one at a time without comparing them with other employees in the
organization.

(a) Confidential report: It is mostly used in government organizations. It is a descriptive report

prepared, generally at the end of every year, by the employees immediate superior. The report
highlights the strengths and weaknesses of the subordinate. The report is not data based. The
impressions of the superior about the subordinate are merely recorded there. It does not offer any

feedback to the appraisee. The appraisee is not very sure about why his ratings have fallen despite his
best efforts, why others are rated high when compared to him, how to rectify his mistakes, if any; on
what basis he is going to be evaluated next year, etc. Since the report is generally not made public and
hence no feedback is available, the subjective analysis of the superior is likely to be hotly contested. In
recent years, due to pressure from courts and trade unions, the details of a negative confidential report
are given to the appraisee.
(b)
Essay evaluation: Under this method, the rater is asked to express the strong as well as weak
points of the employees behavior. This technique is normally used with a combination of the graphic
rating scale because the rater can elaborately present the scale by substantiating an explanation for his
rating. While preparing the essay on the employee, the rater considers the following factors: (i) Job
knowledge and potential of the employee; (ii) Employees understanding of the companys
programmers, policies, objectives, etc.; (iii) The employees relations with co-workers and superiors;
(iv) The employees general planning, organizing and controlling ability; (v) The attitudes and
perceptions of the employee, in general.

Essay evaluation is a non-quantitative technique. This method is advantageous in at least one sense, i.e.,
the essay provides a good deal of information about the employee and also reveals more about the
evaluator. The essay evaluation method however, suffers from the following limitations:
It is highly subjective; the supervisor may write a biased essay. The employees who are sycophants will
be evaluated more favorably then other employees. Some evaluators may be poor in writing essays on
employee performance. Others may be superficial in explanation and use flowery language which may
not reflect the actual performance of the employee. It is very difficult to find effective writers nowadays.
The appraiser is required to find time to prepare the essay. A busy appraiser may write the essay
hurriedly without properly assessing the actual performance of the worker. On the other hand, appraiser
takes a long time, this becomes uneconomical from the view point of the firm, because the time of the
evaluator (supervisor) is costly.
(c)
Critical incident technique: Under this method, the manager prepares lists of statements of very
effective and ineffective behavior of an employee. These critical incidents or events represent the
outstanding or poor behavior of employees on the job. The manager maintains logs on each employee,
whereby he periodically records critical incidents of the workers behavior. At the end of the rating
period, these recorded critical incidents are used in the evaluation of the workers performance. An
example of a good critical incident of a sales assistant is the following:

July 20 The sales clerk patiently attended to the customers complaint. He is polite, prompt,
enthusiastic in solving the customers problem.

On the other hand the bad critical incident may appear as under:

July 20 The sales assistant stayed 45 minutes over on his break during the busiest part of the day. He
failed to answer the store managers call thrice. He is lazy, negligent, stubborn and uninterested
in work.

This method provides an objective basis for conducting a thorough discussion of an employees
performance. This method avoids recency bias (most recent incidents get too much emphasis). This
method suffers however from the following limitations:
Negative incidents may be more noticeable than positive incidents. The supervisors have a tendency to
unload a series of complaints about incidents during an annual performance review session. It results in
very close supervision which may not be liked by the employee. The recording of incidents may be a
chore for the manager concerned, who may be too busy or forget to do it.

Most frequently, the critical incidents technique of evaluation is applied to evaluate the performance of
superiors rather than of peers of subordinates.
(d)
Checklists and weighted checklists: Another simple type of individual evaluation method is the
checklist. A checklist represents, in its simplest form, a set of objectives or descriptive statements about
the employee and his behavior. If the rater believes strongly that the employee possesses a particular
listed trait, he checks the item; otherwise, he leaves the item blank. A more recent variation of the
checklist method is the weighted list. Under this, the value of each question may be weighted equally or
certain questions may be weighted more heavily than others. The following are some of the sample
questions in the checklist.
l

Is the employee really interested in the task assigned?

Is he respected by his colleagues (co-workers)

Does he give respect to his superiors?

Does he follow instructions properly?

Does he make mistakes frequently?

Yes/No
Yes/No

Yes/No
Yes/No
Yes/No

A rating score from the checklist helps the manager in evaluation of the performance of the employee.
The checklist method has a serious limitation. The rater may be biased in distinguishing the positive and
negative questions. He may assign biased weights to the questions. Another limitation could be that this
method is expensive and time consuming. Finally, it becomes difficult for the manager to assemble,
analyze and weigh a number of statements about the employees characteristics, contributions and

behaviors. In spite of these limitations, the checklist method is most frequently used in the employees
performance evaluation.
(e) Graphic rating scale: Perhaps the most commonly used method of performance evaluation is the
graphic rating scale. Of course, it is also one of the oldest methods of evaluation in use. Under this
method, a printed form, as shown below, is used to evaluate the performance of an employee. A variety
of traits may be used in these types of rating devices, the most common being the quantity and quality of
work. The rating scales can also be adapted by including traits that the company considers important for
effectiveness on the job. A model of a graphic rating scale is given below.
Table: Typical Graphic Rating Scale
Employee Name...................
Department .........................

Job title .................

Rate ...............

Data ..................................

Quantity of work: Volume of work under normal working conditions

Unsatisfactory
Fair
Satisfactory
Good
Outstanding
Quality of work: Neatness, thoroughness and accuracy of work Knowledge of job
A clear understanding of the factors connected with the job
Attitude: Exhibits enthusiasm and cooperativeness on the job
Dependability: Conscientious, thorough, reliable, accurate, with respect to attendance, reliefs, lunch
breaks, etc.
Cooperation: Willingness and ability to work with others to produce desired goals.

From the graphic rating scales, excerpts can be obtained about the performance standards of employees.
For instance, if the employee has serious gaps in technical-professional knowledge (knows only
rudimentary phases of job); lacks the knowledge to bring about an increase in productivity; is reluctant
to make decisions on his own (on even when he makes decisions they are unreliable and substandard);
declines to accept responsibility; fails to plan ahead effectively; wastes and misuses resources; etc., then
it can safely be inferred that the standards of the performance of the employee are dismal and
disappointing.
The rating scale is the most common method of evaluation of an employees performance today. One
positive point in favor of the rating scale is that it is easy to understand, easy to use and permits a
statistical tabulation of scores of employees. When ratings are objective in nature they can be effectively
used as evaluators. The graphic rating scale may however suffer from a long standing disadvantage, i.e.,
it may be arbitrary and the rating may be subjective. Another pitfall is that each characteristic is equally
important in evaluation of the employees performance and so on.
(f)
Behaviorally anchored rating scales: Also known as the behavioral expectations scale, this
method represents the latest innovation in performance appraisal. It is a combination of the rating scale
and critical incident techniques of employee performance evaluation. The critical incidents serve as
anchor statements on a scale and the rating form usually contains six to eight specifically defined
performance dimensions. The following chart represents an example of a sales trainees competence and
a behaviorally anchored rating scale.
Table: An Example of Behaviorally Anchored Rating Scale (BARS)

Performance
Points
Behavior
performance: Extremely good
points: 7
behavior: Can expect trainee to make valuable suggestions for increased sales and to have positive
relationships with customers all over the country.

performance: Good
points: 6
behavior: Can expect to initiate creative ideas for improved sales.

performance: Above average

points:5
behavior: Can expect to keep in touch with the customers throughout the year.

performance: Average
points: 4
behavior: Can manage, with difficulty, to deliver the goods in time.

performance: Below average

points: 3
behavior: Can expect to unload the trucks when asked by the supervisor.

performance: Poor
points: 2
behavior: Can expect to inform only a part of the customers.

performance: Extremely poor

points: 1
behavior: Can expect to take extended coffee breaks and roam around purposelessly.

How to construct BARS? Developing a BARS follows a general format which combines techniques
employed in the critical incident method and weighted checklist ratings scales. Emphasis is pinpointed
on pooling the thinking of people who will use the scales as both evaluators and evaluees.

Step 1: Collect critical incidents: People with knowledge of the job to be probed, such as job holders
and supervisors, describe specific examples of effective and ineffective behavior related to job
performance.

Step 2: Identify performance dimensions: The people assigned the task of developing the instrument
cluster the incidents into a small set of key performance dimensions. Generally between five and ten
dimensions account for most of the performance. Examples of performance dimensions include
technical competence, relationships with customers, handling of paper work and meeting day-to-day
deadlines. While developing varying levels of performance for each dimension (anchors), specific
examples of behavior should be used, which could later be scaled in terms of good, average or below
average performance.

Step 3: Reclassification of incidents: Another group of participants who are knowledgeable about the
job is instructed to retranslate or reclassify the critical incidents generated (in Step II) previously. They
are given the definition of job dimension and told to assign each critical incident to the dimension that it
best describes. At this stage, incidents for which there is not 75 per cent agreement are discarded as
being too subjective.

Step 4: Assigning scale values to the incidents: Each incident is then rated on a one-to-seven or one-tonine scale with respect of how well it represents performance on the appropriate dimension. A rating of
one represents ineffective performance; the top scale value indicates very effective performance. The
second group of participants usually assigns the scale values. Means and standard deviations are then
calculated for the scale values assigned to each incident. Typically incidents that have standard
deviations of 1.50 or less (on a 7-point scale) are retained.

Step 5: Producing the final instrument: About six or seven incidents for each performance dimension
all having met both the retranslating and standard deviation criteria will be used as behavioral
anchors. The final BARS instrument consists of a series of vertical scales (one for each dimension)
anchored (or measured) by the final incidents. Each incident is positioned on the scale according to its
mean value.

Because the above process typically requires considerable employee participation, its acceptance by
both supervisors and their subordinates may be greater. Proponents of BARS also claim that such a
system differentiates among behavior, performance and results and consequently is able to provide a

basis for setting developmental goals for the employee. Because it is job-specific and identifies
observable and measurable behavior, it is a more reliable and valid method for performance appraisal.

Researchers, after surveying several studies on BARS, concluded that despite the intuitive appeal of
BARS, findings from research have not been encouraging. It has not proved to be superior to other
methods in overcoming rater errors or in achieving psychometric soundness. A specific deficiency is
that the behaviors used are activity oriented rather than results oriented. This creates a potential problem
for supervisors doing the evaluation, who may be forced to deal with employees who are performing the
activity but not accomplishing the desired goals. Further, it is time consuming and expensive to create
BARS. They also demand several appraisal forms to accommodate different types of jobs in an
organization. In a college, lecturers, office clerks, library staff, technical staff and gardening staff all
have different jobs; separate BARS forms would need to be developed for each. In view of the lack of
compelling evidence demonstrating the superiority of BARS over traditional techniques such as graphic
rating scales. Decotis concluded that: It may be time to quit hedging about the efficacy of behavioral
scaling strategies and conclude that this method has no clear-cut advantages over more traditional and
easier methods of performance evaluation.
(g) Forced choice method: This method was developed to eliminate bias and the preponderance of
high ratings that might occur in some organizations. The primary purpose of the forced choice method is
to correct the tendency of a rater to give consistently high or low ratings to all the employees. This
method makes use of several sets of pair phrases, two of which may be positive and two negative and
the rater is asked to indicate which of the four phrases is the most and least descriptive of a particular
worker. Actually, the statement items are grounded in such a way that the rater cannot easily judge
which statements apply to the most effective employee. The following box is a classic illustration of the
forced choice items in organizations.

Table: Forced Choice Items

1.

2.

Least

Most

Does not anticipate difficulties

Grasps explanations easily and quickly

Does not waste time

Very easy to talk to

Least
A

A
B

Most
Can be a leader

Wastes time on unproductive things

At all times, cool and calm

Smart worker

B
C
D

The favorable qualities earn a plus credit and the unfavorable ones earn the reverse. The worker gets
over plus when the positive factors override the negative ones or when one of the negative phrases is
checked as being insignificantly rated.

They overall objectivity is increased by using this method in evaluation of employees performance,
because the rater does not know how high or low he is evaluating the individual as he has no access to
the scoring key. This method, however, has a strong limitation. In the preparation of sets of phrases
trained technicians are needed and as such the method becomes very expensive. Further, managers may
feel frustrated rating the employees in the dark. Finally, the results of the forced choice method may
not be useful for training employees because the rater himself does not know how he is evaluating the
worker. In spite of these limitations, the forced choice techniques is quite popular.
(h)
Management by Objectives (MBO): MBO represents a modern method of evaluating the
performance of personnel. Thoughtful managers have become increasingly aware that the traditional
performance evaluation systems are characterized by somewhat antagonistic judgments on the part of
the rater. There is a growing feeling nowadays that it is better to make the superior work with
subordinates in fixing goals. This would inevitably enable subordinates to exercise
MBO thus represents more than an evaluation programme and process. Practicing management
scientists and pedagogues view it as a philosophy of managerial practice; it is a method by which
managers and subordinates plan, organize, control, communicate and debate.
Features
MBO emphasizes participatively set goals that are tangible, verifiable and measurable.MBO focuses
attention on what must be accomplished (goals) rather than how it is to be accomplished
(methods).MBO, by concentrating on key result areas translates the abstract philosophy of management
into concrete phraseology. The technique can be put to general use (non-specialist technique). Further it
is a dynamic system which seeks to integrate the companys need to clarify and achieve its profit and
growth targets with the managers need to contribute and develop himself. MBO is a systematic and
rational technique that allows management to attain maximum results from available resources by
focusing on achievable goals. It allows the subordinate plenty of room to make creative decisions on his
own.

5. QUESTIONNAIRE ON PERFORMANCE APPRAISAL SYSTEM:

1. Performance appraisal should be evaluated?
a) Once in six months
b) Once in a year
c) Once in a two years
d) Occasionally
2. Do you receive any guidance from your superior in your day to day
Work?
a) regularly
b) Occasionally
c) Not at all
3. Which are the methods of appraisal followed in your organization?
a) Ranking method
b) Grading method
c) Graphic grating scale
d) Essay method
4. Which aspect according to you does performance appraisal helps employees improving their
performance appraisal rating?

a) Performance
b) Job content
c) Enrich your job
d) Self actualization
5. How did performance appraisal help you in the past?
a) In promotions
b) Improving self
c)
6. Which of the following is a better form of appraisal?
a) Self appraisal
b) Confidential reports
c) Combination of a and b
d) Sub ordinates appraisal of superior
7. What is the major criterion of performance appraisal?
a) Attendance
b) Productivity
c) Contribution to the objectives
d) Problem solving ability
8. Do you think performance appraisal programs cover all the aspects of the employee?
a) Yes
b) No
9. Are you satisfied with the appraisal system followed in the organization?
a) Yes
b) No
10. The objective of performance appraisal is to distinguish performers from non performers?
a) Yes
b) No
11. Is there any scope for bias in the evaluation process, due to personal acquaintances, between the
appraiser and appraisee?
a) Yes
b) No
12. Performance appraisal provides a method of?
a) Self-correcting
b) Set-target
c) Identifying training
d) People placement of personnel

13. Are Short falls / deficiency of employees communicated to sub ordinate?

a) Yes
b) No
14. As an appraiser, evaluating performance of sub-ordinates, does the counseling process help you in
better assessment of individual?
a) Yes
b) No
15. Reasons for exceptionally high/very/poor required to be rated in the performance appraisal form?
a) Yes
b) No
16. Employees are encouraged to experiment with new methods and try out creative ideas?
a) Yes
b) No
17. Mid terms of appraisal review of executive will ensure and improve individual in achieving as well
as organization objectives?
a) Yes
b) No
18. The appraisal data used as input for recognition and encouragement for high performers?
a) Yes
b) No
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Data Analysis & Interpretation

1.Performance appraisal should be evaluated?
Sno
A
B
C
D

Responses
- Once in 6 months
- Once in year
- Once in 2 years
- Occasionally

Respondents
4
34
1
1

Percentage
10
85
2.5
2.5

Respondents

A - Once in 6 months
B - Once in year
C - Once in 2 years
D - Occasionally

INTERPRETATION:
From above table, it is found that 85% employees are satisfied with appraisal system evaluated
once in a year. Even appraising employees once in a year costs less for a company, and 15% of the
employees differ to the above system.
Analysis
85% of employees are satisfied with appraising once in a year because they find time for improving
their skills after the review by their superiors and they require sufficient time to put the suggestions in
practice. From the company's point of view also it saves employees time and energy. As we can see for
the last two options i.e., "once in 2 years" & "occasionally", only one for each option has opted as
employees know that they are normal human beings and they need continuous supervision for efficient
productivity.

2.Do you receive any guidance from your superior in your day to day work?

Sno
A
B
C

responses
regularly
occasionally
not at all

respondents percentage
34
85
3
7.5
3
10

respondents

A regularly
B occasionally
C not at all

INTERPRETATION:
85% employees agree that there is regular guidance from superior in day to day work, 7.5% of
employees get occasionally from their superior and 10% do not get guidance from their superior.
Analysis
85% of employees accepted that they get regular guidance and even they are happy get, so that they can
know about them more clearly and by getting regular guidance they cannot lo ose there interest on their
work. and 10% employees are not willing to be guided regularly but as we know that regular guidance
works more better than irregular guidance, even they will be lack of interest when the guidance is
irregular.

3.What are the methods of appraisals followed in your organization?

Sno
A
B
C
D

responses
- Ranking method
- Grading method
- Graphics rating
- Essay method

respondents
1
37
1
1

Percentage
2.5
92.5
2.5
2.5

respondents

A - Ranking method
B - Grading method
C - Graphics rating
D - Essay method

INTERPRETATION:
From above table Grading method has been followed in organization. From this we can know that
grading method is often used in many organizations, and how important it is, hence its mostly used
method when compared with others.
Analysis
92.5% of employees are appraised by grading method because they cannot be compared with others and
degraded, grading method just tells how is there work by giving grades. and ranking method graphics
method and essay method are the methods where most of the employees avoided because they find
grading method more comfortable, where in ranking method the employees are compared with others
and they give ranks where most of the employees don't like it.

4.Which aspect according to you does performance appraisal helps employees in improving?

Sno
A
B
C
D

responses
performance
job content
enrich you job
self actualization

respondents

percentage
36
1
1
2

90
2.5
2.5
5

respondents

A performance
B job content
C enrich you job
D self actualization

INTERPRETATION:
Most of the employees feel that the appraisal has helped them in developing their performance and few
employees where performance appraisal has helped them in improving job content and enrich their job
Analysis
90% of employees believe that performance appraisal develops once performance in a particular
organization, because they got their personal experiences where with this performance appraisal they
improved a lot in their performance where the performance is given much value in an organization. and
employees totally avoiding the option "job content", just because they already know what actually the
job is about.

5. How the performance appraisal helps you in the past?

sno
A
B
C

responses
In promotions
In monetary gains
Improving self

respondents

Percentage
24
16
0

60
40
0

respondents

A In promotions
B In monetary gains
C Improving self

Interpretation:
60% of employees agree to the fact that promotions are based on performance appraisal. Few employees
say that the performance system has helped them in monetary gains / improving self.
Analysis
60% of employees believe that performance appraisal helps them to be promoted to next level, because
there performance is improved. in many organizations generally they promote the employees by
observing their performance, so the employees believe that performance appraisal helps them to get
promoted to the next level. and 0% of employees avoided the option " self improvement" just because of
the option "promotion" they find promotion more attractive than self improvement.

6.which of the following is better form of appraisal?

sno
A
B
C
D

responses
Self appraisal
Confidential
both a and b
subordinates

respondents
7
7
25
1

percentage
17.5
17.5
62.5
2.5

respondents

A Self appraisal
B Confidential
C both a and b
D subordinates

INTERPRETATION:
62.5% agreed with both A and B and 7% each with self appraisal and confidential reports that are stated
to be better form of appraisal.
Analysis
62.5% employees choose that self appraisal and confidential appraisal methods because there goal with
their self-appraisal is to be honest and provide as much detail as there manager needs to understand why
they've given themselves the rating they have. So be thoughtful about their performance over the past
review period. Hopefully it inspire them to write their own thoughtful assessment.

7.What are the major criteria on which your performance is appraised?

sno
A
B
C
D

responses
Attendance
Productivity
objectives
problem solving

respondents

percentage
1
32
5
1

2.5
82.5
12.5
2.5

respondents

A Attendance
B Productivity
C objectives
D problem solving

INTERPRETATION:
82.5% of them have agreed with productivity.12.5% with objectives and 2.5 each for attendance and
problem solving, which are considered as the major criteria for evaluating performance appraisal.

Analysis
82.5% of employees believe that performance appraisal is done for productivity purpose. productivity
plays a important role in an organization. In an organization generally an productive employees are
given more importance, so the most employees says appraisal is to improve their productivity.

and

many don't accept the option "attendance" because they know the performance is not appraised by there
presence in the organization.

8.Do you think performance appraisal programs covers all the aspects of the employees on a job?

sno
A
B

responses
yes
no

respondents

percentage
36
4

90
10

respondents

A yes
B no

INTERPRETATION:
90% of the respondents say that appraisal program covers all the aspects on his job and 10% of them
say that the assessment should be changed.

Analysis
From the above pie chart we can see that 90% of employees says yes just because of their experience.
where most of the employees believe that the performance appraisal improves all the aspects in all the
areas, it motivate the employees to find their mistakes and to correct them. and 10% are not agreed,
maybe there are new to organization.

9.Are you satisfied with appraisal system followed in the organizations ?

sno
A
B

responses
Yes
No

respondents

percentage
35
87.5
5
12.5

respondents

A Yes
B No

INTERPRETATION:
85% of the employees are satisfied with the appraisal system in the organization only 15% are not
satisfied.

Analysis
As the policies and norms are transparent in the organization so most of the employees like the way the
organization appraises. 85% 0f employees are satisfies, so by this we can know how good the appraisal
system is in the organization. 15% of employees are not satisfied because they may be new to the
organization so that they should be habituated to the system.

10.The objective of performance appraisal is to distinguish performers from non performers ?

sno
A
B

responses
Yes
No

respondents

percentage
35
87.5
5
12.5

respondents

A Yes
B No

INTERPRETATION:
87.5% of employees accept that performance appraisal is to distinguish among performers and non
performers , where as 12.5% of employees are disagreed.
Analysis
Most of the employees strongly agree that the performance appraisal is to distinguish performers and
non performers because if it differentiate the performers and non performers then it's easy task to
superior to decide who to remove and who not to remove from the organization, anyhow non performers
are not useful to the organization.

11. Is there any scope for bias in the evaluation process due to personal acquaintances between the
appraiser and appraise?

sno
A
B

responses
Yes
No

respondents

percentage
8
32

20
80

respondents

A Yes
B No

INTERPRETATION:
20% of the respondents are satisfied with the appraisals and 80% feel the appraisal process due to
personal acquaintance between appraiser and appraise really concern or trouble in practice.

Analysis
so most of employees believe that performance appraisal can be spoiled due to partiality among them. if
the appraise is a relative to appraiser then in that case the performance appraisal won't work properly.
and 20% feel that there would be no partialities in the organization as they are new.

12.Performance appraisal provides a method of ?

Sno
A
B
C
D

responses
Self correcting
set target
identifying training
placement personnel

respondents
17
7
13
3

percentage
42.5
17.5
32.5
7.5

respondents

A Self correcting
B set target
C identifying training
D placement personnel

INTERPRETAION:
42.5% respondents agree with self correcting, 17.5% agree with set targets,32.5% and 7.5% are partially
agreed with the identifying training and proper personal placement.
Analysis
42.5% employees agree with self correcting because Correcting its or one's own mistakes is like
achievement, where everyone likes and they feel like they achieved something, it's a different feeling
where one can be satisfied by correcting one's mistake. And only 7.5% employees chooses the option
called " placement personnel" where Personnel is the department in a large company or organization
that deals with employees, keeps their records, and helps with any problems they might have, so many
employees don't feel that appraisal provides a method of placement personnel.

13.Short falls / deficiencies of employees are communicated to subordinates?

sno
A
B

responses
Yes
No

respondents

percentage
37
92.5
3
7.5

respondents

A Yes
B No

INTERPRETATION:
92.5% employees are communicated to their deficiencies.

Analysis
Most of the employees feel comfortable when they share their problems with others, because when they
share they may get solutions and suggestions from others so that they can solve their problems as soon
as possible, With this we can say that the relation between these two are really good. so they share their
problems with the subordinates. and few employees that is 7.5% don't feel safe to share their problems
just because they many make fun of them and they don't feel good to share their personal problems with
others.

14.As an appraise evaluating performance of subordinate does the counseling process help you in
better assessment of individual?

sno
A
B

responses
Yes
No

respondents

percentage
37
92.5
3
7.5

respondents

A Yes
B No

INTERPRETATION:
92.5% of employees are satisfied with the counseling process that in assessing the individuals. n
remaining 5% are not satisfied.
Analysis
so the majority % of employees are satisfied because they feel that an appraise evaluating performance
of subordinates counseling process help them in better assessment of individual and many feel that they
have changed there thinking mind set just because of the performance appraisal done in the
organization. And 7.5% employees feel it doesn't helps because they may be new to the organization
and they have to gain experience about it.

15.Reasons for exceptionally high/very/poor performance required to be stated in performance

appraisal form?

sno
A
B

responses
Yes
No

respondents

percentage
38
2

95
5

respondents

A Yes
B No

INTERPRETATION:
95% Employees agree that the reasons for exceptionally high/poor performance is required to be stated
in performance appraisal forms.
Analysis
Majority of the employees accept to fill the reasons on their performance if it is poor or average or very
good because if they mention they reason behind their performance then the particular employee can get
to know about him more clearly, and tries to improve himself. and 5% doesn't agree because they may
get demotivated and cannot go further.

16.Employees are encouraged to experiment with a new method and try out creative ideas?

sno
A
B

responses
Yes
No

respondents
37
3

percentage
92.5
7.5

respondents

A Yes
B No

INTERPRETATION:
90% of the respondents say that employees are encouraged to experiment with new methods and try out
creative ideas 10% moderately disagree.
Analysis
90% are really interested to try new methods, they want to learn something new in future and they want
to be updated with the new methods and even they may be bored with the old methods. And 7.5%

employees are likely to be with the same old methods because they are comfortable with the methods
which they are use to.

17. Mid terms review of appraisal of executives will ensure and improve in achieving individual as
well as organizational objectives?

Sno
A
B

responses
Yes
No

respondents

percentage
37
92.5
3
7.5

respondents

A Yes
B No

INTERPRETATION:
95% of the respondents agree that midterm review of appraisal of excutive will ensure and improve in
achieving individual as well as organizational objectives and remaining 5% are satisfied with present
system.
Analysis
95% of employees believe that they can develop their skills with in the span of 6 months. and they also
believe that they can improve themselves and also achieve the objectives of the organization as they get
guidance every 6 months. and 7.5% employees said no to this because many be they are comfortable
with the old review timing which they are used to.

18.The appraisal system data used as input for recognition and encouragement to high
performers?

sno
A
B

responses
Yes
No

respondents

percentage
37
92.5
3
7.5

respondents

A Yes
B No

INTERPRETATION:
95% of them strongly

agree than appraisal system data are used as input for recognition and

encouragement to high performers and remaining 5% disagree.

Analysis
Most of the members in the organization agree with the first option, where they strongly believe that
appraisal system data are used as input for recognition and encouragement to high performers because
the appraisal system data which is collected after the employees appraisal gives the employee the way to
develop and tells their weaknesses, and with this they can overcome their weaknesses and improve their
performance and professionalism in the work they do.