Objective of the study

To study the various performance appraisal methods used in BSNL.

To find out the specification level of employees regarding the present
performance appraisal system used BSNL.
To study and analyses the purpose and use of performance appraisal of
employees at BSNL.
To find out the problems in the performance appraisal methods used in
the organization.

COMPANY PROFILE
Indias fastest growing cellular service CellOne, along with Excel (pre-service)
brings
Cellular telephony to the masses, through innovative technology and
strategic pricing.
This ambitious service uses state-of-the-art GSM technology to attain global
Excellence and leadership in business. Our entry into this sector gas brought
GSM
Cellular service at an affordable cost the common man. All serving a single
objective, to
Provide better communication to millions across India.
Cellone is the postpaid service of the BSNL. It offers you a host of value
added services
And unmatched features not found in any other Cellular service.
Excel is the Pre-paid service of the CellOne Cellular Service of BSNL. It offers
you a
Host of value added services and unmatched features not found in any other
Cellular
Service. All India roaming facility is
Also available on Excel service.

Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest
Telecommunications Company providing comprehensive range of telecom
services in
India: Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier
service,
MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five years it
has
Become one of the largest public sector units in India.
BSNL has installed Quality Telecom Network in the country and now focusing
on improving it, expanding the network, introducing new telecom services
with ICT
Applications in villages and wining customer's confidence. Today, it has about
47.3
Million line basic telephone capacity, 4 million WLL capacities, 20.1 Million
GSM
Capacity, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite
Stations, 480196
Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602
Districts, 7330cities/townsand5.5Lakhsvillages.
BSNL is the only service provider, making focused efforts and planned
initiatives to
Bridge the Rural-Urban Digital Divide ICT sector. In fact there is no telecom
operator in
The country to beat its reach with its wide network giving services in every
nook & corner
Of country and operates across India except Delhi & Mumbai. Whether it is
inaccessible
areas of Siachen glacier and North-eastern region of the country. BSNL serves
its
Customers with its wide bouquet of telecom services.
BSNL is numerous union operator of India in all services in its license area.
The
Company offers vide ranging & most transparent tariff schemes designed to
suite every
CustomerBSNL cellular service, CellOne, has more than 17.8 million cellular
customers, garnerin
24 percent of all mobile users as its subscribers. That means that almost
every fourth
Mobile user in the country has a BSNL connection. In basic services, BSNL is
miles
ahead of its rivals, with 35.1 million Basic Phone subscribers i.e. 85 per cent
share of the
Subscriber base and 92 percent share in revenue terms.
BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet
Customers
Who access Internet through various modes viz. Dial-up, Leased Line, DIAS,
and
Account less Internet (CLI). BSNL has been adjudged as the NUMBER ONE ISP
in the
country.
BSNL has set up a world class multi-gigabit, multi-protocol convergent IP
infrastructure
that provides convergent services like voice, data and video through the
same Backbone
and Broadband Access Network. At present there are 0.6 million DataOne
broadband
Customers. The company has vast experience in Planning, Installation, and
network
integration and Maintenance of Switching & Transmission Networks and also
Has a world class ISO 9000 certified Telecom Training Institute?
Scaling new heights of success, the present turnover of BSNL is more than
Rs.351, 820
Million (US $ 8 billion) with net profit to the tune of Rs.99, 390 million (US $
2.26
Billion) for last financial year. The infrastructure asset on telephone alone is
worth about
Rs.630, 000 million (US $ 14.37 billion). BSNL plans to expand its customer
base from
Present 47 million lines to 125 million lines by December 2007 and
infrastructure
Investment plan to the tune of Rs. 733 crores (US$ 16.67 million) in the next
three years.

Main Services Being provided by BSNL

BSNL provides almost every telecom service, however following are the
main Telecom
Services being provided by BSNL in India:-
Universal Telecom Services: Fixed wire line services & Wireless in Local
loop (WLL)
Using CDMA Technology called bfone and Tarang.
Cellular Mobile Telephone Services: BSNL is major provider of Cellular
Mobile
Telephone services using GSM platform, called Cell One and BSNLs
GSM Cellular
Services are known as Excel Power (Prepaid). Internet: BSNL is
providing internet as dial-up connection (Sancharnet) and ADSL-
Broadband (Data one).
2.1-COMPANY HISTORY
The foundation of Telecom Network in India was laid by the British
sometime in 19th
Century. The history of BSNL in linked with the beginning of Telecom in
India. In 19th
Century and for almost entire 20tt century, the telecom in India was
operated as a
Government of India wing. Earlier it was part of erstwhile Post &
Telegraph Department
(P&T). In 1975 the Department of Telecom (DoT0 was separated from
P&T. DoT was
responsible for running of Telecom service in entire county until 1985
when Mahanagar
 Telephone Nigam Limited (MTNL) was carved out of Dot to run the
telecom service of
Delhi and Mumbai. It is a well-known fact that BSNL was carved out of
Department of
Telecom to provide level playing field to private telecoms.
Subsequently in 1990s the
Telecom sector was opened up by the Government for private
investment; therefore it
Became necessary to separate the Governments policy wing from
Operations wing. The Government of India corporative the operations
wing of Dot on October 01, 2000 and named it as Bharat Sanchar
Nigam Limited (BSNL). BSNL operates as public sector.

VISION, MISSION & OBJECTIVES

VISION

In Asia. To become the largest telecom Service Provider

MISSION
To provide world class State-of-art technology telecom services to its
customers
On demand at competitive prices.

To provide world class telecom infrastructure in its area of operation

and to
Contribute to the growth of the countrys economy.

OBJECTIVE
 To be a Lead Telecom Services Provider.

To provide quality and reliable fixed telecom service to our

customer and thereby increase customs confidence.

To provide mobile telephone service of high quality and become

no. 1 GSM operator in its area of operation.

2.2- OWNERSHIP-

Bharat Sanchar Nigam Limited is a public sector undertaking and it is

owned by the government
of India.
2.3 BUSINESS GROWTH PLAN
BSNLs future plan include a fast expansion programmed of increasing
the present 34
million lines to twice that number by 2005 and some 120 million lines
by 2010.
Consolidation of the network and maintaining high quality of service
comparable to
International standards are the key aim of the Growth Plan. Objective
of the plan are:

The telephone connection shall be provided on demand and it

shall be sustained.
The Network shall be made fully digital. All the technologically
obsolete analog
exchanges will be replaced with digital exchanges.
To provide digital transmission links up to all SDEAs.
Digital connectivity shall be made available to all the exchanges
by 2007.
Upgrading existing STD/ISD PCOs to full-fledged Public Tele-Info
Centers
(PTIC) for supporting Multimedia capability and Internet Access.
Replacement of life expired, analogue coaxial and radio systems.
Introduction of latest telecom services like National Directory
enquiry, computerization etc.
SOCIAL COMMITMENT
BSNL is committed to provide quality Telecom Services at affordable
price to the
citizens of the remotest part of the Country. BSNL is making all effort to
ensure that the
main objectives of the new Telecom Policy 1999 (salient points
indicated below) are
achieved:
Access to telecommunications is of utmost importance for
achievement of the
Countrys social and economic goals. Availability of affordable and
effective
Communications for the citizens is at the core of the vision and goal of
the new
Telecom policy 1999.
Strive to provide a balance between the provision of universal service
to all
Uncovered areas, including the rural areas, and the provision of high-
level services
capable of meeting the needs of the countrys economy.
Encourage development of telecommunication facilities in remote, hilly
and tribal
areas of the country.
Transform in a time bound manner, the telecommunications sector to a
greater
Competitive environment in both urban and rural areas providing equal
Opportunities and level playing field for all players.
2.2- OWNERSHIP-

Bharat Sanchar Nigam Limited is a public sector undertaking and it is

owned by the government of India.
BUSINESS GROWTH PLAN
BSNLs future plan include a fast expansion programmed of increasing
the present 34
Million lines to twice that number by 2005 and some 120 million lines
by 2010.
Consolidation of the network and maintaining high quality of service
comparable to
International standards are the key aim of the Growth Plan.

Objective of the plan are:

The telephone connection shall be provided on demand and it
shall be sustained.
 The Network shall be made fully digital. The entire
technologically obsolete analog
Exchanges will be replaced with digital exchanges.

To provide digital transmission links up to all SDEAs.

Digital connectivity shall be made available to all the exchanges

by 2007.

Upgrading existing STD/ISD PCOs to full-fledged Public Tele-Info

Centers
(PTIC) for supporting Multimedia capability and Internet Access.

SERVICES
BSNL LANDLINE
PHONE PLUS SERVICE
NEW TELEPHONE CONNECTION
PERMANENT CONNECTION
SHIFT OF TELEPHONE
TRANSFER OF TELEPHONE
TELEPHONE TARIFF
BSNL MOBILE
POSTPAID
PREPAID
UNIFIED MESSAGING
GPRS/WAP/MMS

CHAPTER 3.

REVIEW OF LITERATURE

1.Steven Thomas L. (1994)Steven in his research study published in SAM

Advanced Management Journal says that many academics and practicing
managers regard performance appraisal as one of the most valuable human
resource tools. It is a vital component in recruiting and hiring employees,
where it is used to validate selection tests, and in staffing, where transfer,
layoff, termination, or promotion decisions are made on the basis
of appraisal results. In compensation administration, performance appraisal
forms the basis for the administration of merit pay systems. Most important,
performance appraisal can be used as a motivational tool for communicating
performance expectations to employees and providing them with feedback.
Finally, performance appraisal is indispensable in training and development
activities to assess potential and identify training needs. He also opines that
there appears to be a growing debate about whether the consequences of
the performance appraisal are truly beneficial many organizations. A
significant number of practicing managers appear to be saying

that performance appraisal may create more problems than it solves.

2. John R Christian (2007) In this study conducted by John R Christian in

Beach Park Fire Department of Illinois speaks about the importance of
performance appraisal. The purpose of this research was to assess what is
utilized in the fire service currently and research what components are
needed to develop a functional performance appraisal system.
Further researched was how to implement an appraisal system successfully
in order to achieve the optimum benefits for the both the firefighter and the
department utilizing the compiled data. The Action Research Method was
utilized in creating and evaluation program and fully implemented by the
department outlining essential job functions through the use of industry
standards, job description, and best practices. Continual evaluation of this
system and modification is recommended in the future.

3.Trumble, Robert R., Tudor, Thomas R., Flowers, Lamont A.Traditional

methods of performance appraisals used by human resources in many
organizations are inadequate, disorganized, and are often viewed by
employees as unfair. Computer Assisted Performance Appraisal Systems offer
an alternative solution that can reduce some of the problems encountered
with traditional methods. Such systems permit managers to accurately
update and evaluate information on employees, enable the formation of job
descriptions more efficiently, and meet all legal guidelines by editing reports
that contain words which may be construed as defamatory in nature.
4. Fletcher C. (2001) this article identifies and discusses a number of themes
and trends that together make up the developing research agenda for this
field. It breaks these down in terms of the nature of appraisal and the context
in which it operates. The former is considered in terms of contemporary
thinking on the content of appraisal (contextual performance, goal
orientation and self-awareness) and the process of appraisal (appraiser
appraise interaction, and multi-source feedback). The discussion of the
context of appraisal concentrates on cultural differences and the impact of
new technology. In reviewing these emerging areas of research, the article
seeks to explore some of the implications for appraisal practice at both
organizational and individual levels.

5. C. C. Yee and Y.Y.Chen (2009) Performance appraisal of employee is

important in managing the human resource of an organization. With the
change towards knowledge-based capitalism, maintaining talented
Knowledge workers is critical. However, management classification of
outstanding, poor and average performance may not be aneasy
decision. Besides that, superior might also tend to judge the
work performance of their subordinates informally and arbitrarily especially
without the existence of a system of appraisal. In this paper, we propose a
performance appraisal system using multifactorial evaluation model in
dealing with appraisal grades which are often express vaguely in linguistic
terms. The proposed model is for evaluating staff performance based on
specific performance appraisal criteria.
 CHAPTER -4

THEORETICAL OVER VIEW

INTRODUCTION TO PERFORMANCE APPRAISAL OF EMPLOYEE

Performance Appraisal, which is also known as employee appraisal,

performance tracking, performance evaluation, or performance assessment,
is a very commonly used term in Human Resource Management and in most
business entities. If defined the term appropriately, Performance Appraisal is
a process of obtaining, analyzing, recording employee information in his work
environment and reporting the results to those who are interested in it. In
simple words, it is the process of assessing employees at their work for their
further development.

A common mistake that we all make in our professional life is mixing up

performance appraisal with performance management. Obviously,
performance appraisal is related to performance management but they are
not perfectly same. While performance appraisal does the initial stage of
performance management, that is evaluating the performance levels of
employees, performance management is a total system which also defines
tools and techniques to develop manpower to achieve a higher level of
performance at work.
Performance appraisals purpose - and how to
make it easier
Performance appraisals are essential for the effective management and
evaluation of staff. Appraisals help develop individuals, improve
organizational performance, and feed into business planning. Formal
performance appraisals are generally conducted annually for all staff in the
organization. Each staff member is appraised by their line manager. Directors
are appraised by the CEO, who is appraised by the chairman or company
owners, depending on the size and structure of the organization.

Annual performance appraisals enable management and monitoring of

standards, agreeing expectations and objectives, and delegation of
responsibilities and tasks. Staff performance appraisals also establish
individual training needs and enable organizational training needs analysis
and planning. Performance appraisals also typically feed into organizational
annual pay and grading reviews, which commonly also coincide with the
business planning for the next trading year. Performance appraisals generally
review each individual's performance against objectives and standards for
the trading year, agreed at the previous appraisal meeting. Performance
appraisals are also essential for career and succession planning -
for individuals, crucial jobs, and for the organization as a whole. Performance
appraisals are important for staff motivation, attitude and
behavior development, communicating and aligning individual and
organizational aims, and fostering positive relationships between
management and staff. Performance appraisals provide a formal, recorded,
regular review of an individual's performance, and a plan for future
development. Job performance appraisals - in whatever form they take - are
therefore vital for managing the performance of people and organizations.
Managers and appraisees commonly dislike appraisals and try to avoid them.
To these people the appraisal is daunting and time-consuming. The process
is seen as a difficult administrative chore and emotionally challenging. The
annual appraisal is maybe the only time since last year that the two people
have sat down together for a meaningful one-to-one discussion. No wonder
then that appraisals are stressful - which then defeats the whole purpose. In
fact performance appraisals of all types are effective if they are conducted
properly, and better still if the appraisal process is clearly explained to,
agreed by, the people involved. Managers need guidance, training and
encouragement in how to conduct appraisals properly, especially the
detractors and the critics. Help anxious managers (and directors) develop
and adapt appraisals methods that work for them. Be flexible. There are lots
of ways to conduct appraisals, and particularly lots of ways to diffuse
apprehension and fear - for managers and appraisees alike. Particularly
encourage people to sit down together and review informally and often - this
removes much of the pressure for managers and appraisees at formal
appraisals times. Leaving everything to a single make-or-break discussion
once a year is asking for trouble and trepidation. Look out especially for the
warning signs of 'negative cascaded attitudes' towards appraisals. This is
most often found where a senior manager or director hates conducting
appraisals, usually because they are uncomfortable and in experienced in
conducting them. The senior manager/director typically will be heard to say
that appraisals don't work and are a waste of time, which for them becomes
a self-fulfilling prophecy. This attitude and behavior then cascades down to
their appraisers (all the people in their team) who then not surprisingly also
apply the same 'no good - not doing it' negative attitude to their own
appraisals responsibilities (teams). And so it goes. A 'no good - not doing it'
attitude in the middle ranks is almost invariably traceable back to a senior
manager or director who holds the same view. As with anything, where
people need help doing the right thing, help them.

All that said, performance appraisals that are administered without training
(for those who need it), without explanation or consultation, and conducted
poorly will be counter- productive and are a waste of everyone's time. Well-
prepared and well-conducted performance appraisals provide unique
opportunities to help appraises and managers improve and develop, and
thereby also the organizations for whom they work. Just like any other
process, if performance appraisals aren't working, don't blame the process,
ask yourself whether it is being properly trained, explained, agreed and
conducted. Discussed, with a view to identifying weaknesses and strengths
as well as opportunities for improvement and skills development.

In many organizations - but not all - appraisal results are used, either directly
or indirectly, to help determine reward outcomes. That is, the appraisal
results are used to identify the better performing employees who should get
the majority of available merit pay increases, bonuses, and promotions. By
the same token, appraisal results are used to identify the poorer performers
who may require some form of counseling, or in extreme cases, demotion,
dismissal or decreases in pay. (Organizations need to be aware of laws in
their country that might restrict their capacity to dismiss employees or
decrease pay.) Whether this is an appropriate use of performance appraisal -
the assignment and justification of rewards and penalties - is a very
uncertain and contentious matter.