Performance Appraisal System

A pack ON movement estimate c bewilder by with(p) FOR BAJAJ FINSERV extra PROJECT REPORT Submitted in the un perfect(a) ful englutment for the award of MASTER OF BUSINESS politics Submitted By SOFIYA TARRANNUM (Roll No- 2128-11-672-018) Under the guidance of ASHARA ANJUM HYDERABAD PRESIDENCY P. G. COLLEGE (Affiliated to Osmania University Hyderabad, and approved by AICTE. DECLARATION I here by decl ar that the project perish entitled A STUDY ON implementation judgement SYSTEM, submitted by me nether the supervision of, ASHARA ANJUM, Department of MBA, HYDERABAD PRESIDENCY P.G COLLEGE. HYDERABAD submitted for the requirement for the award of the Master of cargon governing body of OSMANIA UNIVERSITY and it is entirely original and has non been submitted earlier by any one for any Degree or Diploma. PLACE HYDERABAD DATE (SOFIYA TARRANNUM) ROLL NO 2128-11-672-018 CERTIFICATE This is certify that the project work entitled A STUDY ON execution APPRAISAL SYSTEM is bonafide work done and submitted by SOFIYA TARRANNUM, in partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION in HYDERABAD PRESIDENCY P.G COLLEGE (Affiliated to Osmania University, Hyderabad and approved by AICTE, during the year 2012-2013. ASHARA ANJUM ARSHAD UR REHMAN Project Guid Head of Department Hyderabad Presidency P. G College Hyderabad Presidency P. G College Hyderabad-500089. Hyderabad -500089. ACKNOWLEDGEMENT origin of whole(prenominal), I think al powerfulnessy god who has blessed me alone through my life. I wish to shew my sincere indebtedness to our principal, prof.ARSHAD UR RAHMAN. HYDERABAD PRESIDENCY COLLEGE. My profound thanks and deep sense of gratitude of , Head of the Department, HPC for his valuable contri furthere and encouragement . I express my sincere thanks to my guide, ASHARA ANJUM, associate professor for their valuable guidance and suggestions and world prickal in having shape to my project work. I woul d like to thank entire faculty members in Hyderabad Presidency p. g college. for their support and inspiration for successful completion of the project they were the well-nigh caring and the vanquish critics during the course of y project and enabled me to be creative and multi-dimensional in my approach. I allow remain eer debited to them. Last but not the least, I wish to ac tell apartledge with gratitude for the support and encouragement extended by my family members for the successful completion of the project. (SOFIYA TARRANNUM) EXECUTIVE SYNOPSIS HYDERABAD PRESIDENCY P. G COLLEGE A STUDY ON PERFORMANCE APPRAISAL DONE FOR BAJAJ FINSERV LIMITED. NAME SOFIYA TARRANNUM UNDER THE GUIDENCE OF ROLL NO -2128-11-672-018 ASHARA ANJUM board OF CONTENTTOPICSPAGE NO. CHAPTER-1 unveiling 9-16 inquiry METHODOLOGY17-19 CHAPTER-2 LITERATURE REVIEW14-25 CHAPTER-3 THE COMPANY/ ORGANIZATION/ SYSTEM26-43 CHAPTER-4 in radiation diagramation ANALYSIS44-68 CHAPTER-5 FINDINGS,SUGGESTION & CON CLUSION 69-74 BIBLIO interpretY76 QUESTIONARE 77 LIST OF TABLES AND graph Sl No. FiguresPage No 1. Project Goals argon different from functional Goal45 2. Position on the basis of work46 3. Scope of using the innovating skills in reservation Decesion47 4. Percentage of Target matching with Goal48 5. Discuss face-to-face problem with shining49 6.Superior ease up to fancy their goal50 7. Methods of estimation51 8. social team Relationship 52 9. Employee appreciation53 10. Feed bet on apt(p) by valuator54 11. Employee imprint rough frequency of estimate outline55 12. legal opinion on mental process linked action policy56 13. cultivation pick ups57 14. Employee opinion on estimation system58 15. judgement System59 16. military order system60 17. Planning61 18. Value of employee in the organization62 19. Improvement in Job per attainance63 20. Self assessment64 21. Effectiveness of report65 22. Employee Satisfiction66LIST OF CHARTS Sl No. FiguresPage No 1. ed ge Flow Chart of approximation24 2. Service at Bajaj Finserv restrain25 3. effect Rating against individualistic item 27 4. heavy particularise detail of portfolio32 5. Organization Structure of Bajaj Finserv35 6. estimate by first base Assessor37 7. Appraisal by minute of arc Assessor38 CHAPTER-1 INTRODUCTION RESEARCH METODOLOGY RESEARCH METHODOLOGY Research design descriptive in nature Research instrument A headspring structured questionnaire Population size 275 savour size 100Sampling unit Technical Sample procedure convenience sampling Sources of entropy elemental & Secondary entropy Primary data Primary data is collected from the respondents through Questionnaire & interacting with the associates. Secondary data Secondary data is collected from the various text edition books On public vexation appraisal, utmost society reports, alliance Broachers and company websites. ww. bajajfinserv. com Statistical tool heavy ordinary stylus and simple divis ion rule. This chapter deals with the Title of the adopt, the Need of the take apart i. e. for what purpose the study is actually carried out, the Scope of the study, the Objectives of the study, the unlike sources of data collection, the Study instruments used for conducting survey like Questionnaire, Interview etc, the way the data is analyzed, the Presentation of the study and finally the limitation involved in the study.TITLE OF THE STUDY The Title of the study is STUDY ON PERFORMANCE APPRAISAL SYSTEM At BAJAJ FINSERV LIMITED , Hyderabad, and Andhra Pradesh. NEED FOR THE STUDY ? capital punishment appraisal has been considered as a intimately signifi johnt and dispensable tool for an organization. It is highly useful in making decisions regarding various individualisedised aspects. Performance appraisal developing criteria for packaging and c atomic numerate 18er development. ?It provide a synthetic feed back to the employees regarding there implementation with in a li mited period of time.It pr howevert grievances and increases the analytical abilities of the supervisors The overall accusatives of slaying appraisal is to improve the susceptibility of an enterprise by attempting to mobilize the best possible effort from individuals active SCOPE OF THE STUDY The scope of the study has been confined to the associates of Bajaj Finserv limited. It entangles associates of various departments with different cadres unit top- train executives atomic design 18 excluded from the study. accusativeS OF THE STUDY ?To study the existing performance appraisal system at B F L. ?To evaluate the forcefulness of appraisal system. To completeer suggestion for improvement in performance appraisal system. RESEARCH DESIGN Descriptive study A research design is the arrangement of conditions for collection and analysis of data in manner that aims to combine relevance to the research purpose with economy in procedure. RESEARCH INSTRUMENT making researches wargo n a choice of two main research instruments in collecting primary data. They argon questionnaire and mechanical devices. Hear the research instrument used in a structure questionnaire, which is carefully and well designed. It includes both easy and close ended questions.The questionnaire is ainly administered to the respondents and clarify the doubts if any , and the responses were solicited. SAMPLING DESIGN universe of discourse In statistical uses the term population is any finite or infinite collection of individuals. The populations of this study are associates of the skilful department of the company. Population size Population size constitutes 275 associates Sample size A sample size is 100 Sample unit A sample unit is service department. SOURCES OF DATA COLLECTION Data for the present study is collected through two sources i. e. through primary data and secondary data.Primary Data The primary data is collected through Questionnaires and interacting with the associates. Se condary Data For the study on performance Appraisal System the secondary Sources used are various Textbooks on Performance Appraisal, company reports, company policies, brochures and various websites. STUDY INSTRUMENTS The questionnaire is framed to find out the soundness of Performance Appraisal of Bajaj Finserv Limited. It contains 24 questions. It is selectd into four sections. Setting Of Goals Role Of Superior Feedback and paygrade Organizational EffectivenessANALYSIS OF DATA The collected data is tabulated and wherefore analyzed by simple percentage, weighted average and represented by different types of represents and charts. The analysis of data is on the basis of the questionnaire collected from the associates. CHAPTER-2 LITERATURE REVIEW CONCEPTUAL FRAMEWORK DEFINITION OF PERFORMANCE APPRAISAL To pay off the concept of performance appraisal the management gurus uphold taken certain common parameters and on the basis of that they submit defined the term. The terminol ogy of the explanations whitethorn differ but the overall stiffing of the definition remains same(p). most of the leading definitions are given below ?Performance appraisal is a systematic analyze of a persons work and achievements over a recent period, usually leading to plans for the future. ?In, its most basic form, performance appraisal includes documenting achieve firmness of purposes (Hopefully, by overly including use of examples to clarify documentation) and indicating if standards were met or not. ?The appraisal usually includes near form of development plan to address insufficient performance. ?The evaluation of an individuals work performance in order to arrive at objective personnel decisions.PURPOSE OF traditional PERFORMANCE APPRAISALS Performance appraisal for evaluation using a traditional approach has served the following purposes ?Promotion, separation, and transfer decisions. ?Feedback to the employee regarding how to organization viewed the employees perfo rmance. ?Evaluation of relative contributions do by individuals and departments in achieving high organization goals. ?Criteria for evaluating the effectiveness of natural selection and placement decisions, including the relevance of the information used in the decisions within the organization. fix decisions, including merit increases onward motions and other rewards. ?Ascertaining and diagnosing, reproduction and development decisions. ?Criteria for evaluating the success of cultivation and development decisions. INSIGHT INTO APPRAISAL THEORY Organizations in their day-to-day activities operative handle loads of activities. The employees working in the organizations carry on these activities. Organization activities done by the employees are termed as performance the buzzword that is all time in the heads of the management. The success of the organization depends upon the performance of its employees in the beginning organizations did not have any kind of particular pro mi litary capability methodology to handle the issues relating to measuring of performance because they did not had an understanding that the performance of the employees plays an significant role in the overall functioning and meeting goals and objectives of the organizations. Performance is careful basically on the basis of the goals by an individual, which contribute to the overall organizational goals. The main focus is on meeting the overall goals and objectives of the organization in the specific time span.In doing so the organization moldiness also see that the individual egotism-development and personal goals are also fulfilled. When the individual is able to synchronize his personal goals with that of the organizational goals then the working of the system ordain be apt. PREFACE OF THE APPRAISAL SYSTEMS The appraisal is both ineluctable and universal. In the absence of carefully structured system of appraisal, tribe tend to judge the work performance of others ,includin g overcomes, naturally, informally and arbitrarily.Without a structured appraisal system there is a little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate. The history of performance appraisal is quite brief. Its roots in the advance(prenominal) 20th century can be traced to Taylors pioneering time and motion studies. But this is not in truth facilitateful, for the same may be said about almost e verything in the field of modern human being resource management. The practice of appraisal is an ancient art. In the scale of things historical , it might well lay claim that appraisal is the world second oldest profession.Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to solve whether or not the salary or wage of an individual employee Was justified. Little consideration, if any, was given to the developmental possibilities of appraisal. It was snarl that a cut in a pay, or a rise, s hould provide the entirely required trend for an employee to either improve or continue to perform well. Pay rates were important, yes but they were not only the element that had an impact on employee performance.It was found that other issues, much(prenominal) as morale and self-esteem, could also have a major influence. APPRAISALS IN TODAYS CORPORATE WORLD The modern system of performance appraisal is defined as a structured formal interaction amongst a helper and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvements and skill development.In many organizations but not all appraisal settlements 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 ma jority of available merit pay increases, bonuses and promotions. By the same token, appraisal results are used to identify the poorer performers who may require most form of counseling, or in some cases demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their rustic that might restrict their capacity to dismiss employees or decrease pay. FLAW EXIST IN TRADITIONAL PERFORMANCE APPRAISAL SYSTEM oWork scheduling plans oBudgeting oHuman imagination planning MOSTLY USED METHODS OF PERFORMANCE APPRAISAL RATING SCALES The pass judgment scale method offers a high degree of structure for appraisals. Each employee mark or characteristics is rated on the bipolar scale that usually has several points ranging from poor to excellent . The traits assessed on these scales include ? Cooperation ?Communication ability ?Initiative ?Punctuality ?Technical competenceThe nature and scope of the traits selected for inclusion is limited only by the imagination of the sca les designer or by the organizations need. behavioral ANCHORED RATING SCALES The term used to describe a performance rating that think on specific behaviors or sets as indicators of effective or ineffective performance, rather than on broadly stated adjectives such as average, above average, or below average . graphical recordIC RATING SCALES The term used to define the oldest and the most widely used performance appraisal method.The evaluator are given a graph and asked to rate the employees on each of the characteristics. The number of characteristics varies from one to hundred. The rating can be a hyaloplasm of boxes for the evaluator to check off or a bar graph where the evaluator checked off a location relative to evaluators rating. CHECKLIST The term used to define a set of adjectives or descriptive affirmations. If the rater believed the employee possessed a trait listed, the rater checked the item if not, the rater left the item blank. The rating degree from the checkl ist equaled the number of checks.WEIGHTED CHECKLIST The term is used to describe an alternative method of performance appraisal where the supervisor or personal specialists familiar with the mull being evaluated prepare a large list of descriptive statements about effective and ineffective behavior of cheats. RANKING METHOD The term ranking has been used to describe an alternative method of performance appraisal where the supervisor has been asked to order his or her employees in terms of performance from highest to lowest. CRITICAL incident METHODThe term is used to define a method of appraisal that made lists of statements very effective and very ineffective behavior for employees. The lists have been combined into categories, which vary with the job. Once these categories are developed and a statement of effective and ineffective behavior has been provided, the evaluator recorded examples of precise behaviors, and the log has been used to evaluate the employees at the end of evaluation period. NARRATIVE OR ESSAY EVALUATION This method requires the evaluator to write a short essay describing each employees performance during the raring period.This format emphasizes evaluation of overall performance, establish on the strengths and weaknesses of an employee performance. Some companies still use this method exclusively, whereas in others, the method has been combined with the graphic rating scale. MANAGEMENT BY OBJECTIVES The management by objectives performance appraisal method has the supervisor and the employee get unitedly to set objectives in quantifiable terms. The appraisal method has worked to eliminate communication problems by the establishments of regular meetings, accenting results, and by being an ongoing process. Cascading of organizational objectives oSetting up of subordinate objectives oReviewing and evaluating the performance oFeedback and rewards oSetting up of new MBO. 360 full point PERFORMANCE APPRAISAL Performance Appraisal by all t he parties like supervisors, peers, subordinates, employees themselves, users of service and consultants is called 360 degree Performance Appraisal. The authenticator should be capable of determining what is more important and what is less important. He should prepare reports and nominate judgments without any bias. self APPRAISALIf individuals understand the objectives they are pass judgment to achieve and the standards by which they are to be evaluated, they are to a great extent in the best position to review their own performance. Also, since employee development performer self-development employee who appraises his or her own performance may become highly motivated. MERITS OF AN APPRAISAL SYSTEM Perhaps the most significant benefit of appraisal is that, in the rush and bustle of daily working life, it offers a grand chance for a supervisor and subordinate to have time out for a one-on-one preaching of important work issues that might not otherwise be addressed.Almost universally, where performance appraisal is conducted properly, both supervisors and subordinates have reported the experience as beneficial and positive. Appraisal offers a valuable opportunity to focus on work activities and goals, to identify and correct the existing problems, and to encourage better future performance. Thus the performance of the whole organization is enhanced. The value of this intense and purposeful interaction between a supervisor and subordinate should not be underestimated. Motivation and SatisfactionPerformance appraisal can have a profound effect on levels of employee pauperism and satisfaction. It provides employees with recognition as an incentive has been long noted. In fact, there is evidence that human beings will even prefer negative recognition in preference to no recognition at all. Training and outgrowth Performance Appraisal offers an excellent opportunity perhaps the best that will ever occur for a supervisor and subordinate to recognize a nd apply upon individual upbringing and development needs. Recruitment and inductionAppraisal data can be used to monitor the success of the organizations recruitment and induction practices. For example, how well are the employees performing who were hired in the past two years? Appraisal data can also be used to monitor the effectiveness of changes in recruitment strategies. By following the yearly data link up to new hires it is possible to assess whether the general prize of work force is improving, staying steady, or declining. Employee Evaluation Though often understated or even denied, evaluation is a legitimate and major objective of performance appraisal.But the need to evaluate is also an ongoing source of tension, since evaluative and developmental priorities appear to often clash. Yet at its most basic level, performance appraisal is the process of examining and evaluating the performance of an individual. It is been said by some that appraisal cannot serve the need s of evaluation and development at the same time it must(prenominal) one or other. EXPECTATIONS FROM MANAGER IN DOING PERFORMANCE APPRAISAL Translate organizational goals into individual job objectives Communicate management expectations regarding employee performance. Provide feedback to the employee about the job performance in light of managements objectives. Coach the employee on how to achieve job objectives/requirements. Diagnose the employees strengths and weaknesses. Determine what kind of development activities might help the employee better utilize his or her skills to improve performance on the current job. CRITERIA OF A in(predicate) PERFORMANCE OBJECTIVE Specific What specifically is to be achieved? Not just what actions are to be performed, but what results are to be achieved through these actions? Keeping objectives simple ensures they are clear and specific.This also reduces the chance for disputes or confusion come performance appraisal time. Measurable How will y ou know how well an objective has been achieved? Although it may not be readily apparent, every object can be measured. Some measures can be measured quantitatively others must be measured qualitatively. Accountable Accountability for performance objectives must be crystal clear and specifically state who is accountable. The more detail the better. A clear definition of what he or she is specifically accountable for will help reduce confusion cum performance appraisal time.Defining accountability will ensure a sense of urgency and purpose on the part of the employee. virtual(prenominal) For an objective to be meaningful, it must be veridicalistic and reasonable. A well-written performance objective focuses on the goals and objectives required to meet the objective. In highly efficient organizations, performance objectives ultimately link back to the companys overall strategy and business plan. Objectives should challenge employees towards continuous improvement, but should not be unrealistic or unattainable. Time base An achievable time frame must be set for reaching the objectives.Consider designation specific brand dates not only for the performance objective itself, but also each lesser milestone linking the entire goal. Remember to be specific towards achieving results and guide action in a results oriented ways towards the objective. PROCESS FLOW CHART OF APPRAISAL GENERAL INSTRUCTIONS The performance rating against individual item in the appraisal is to be done on a 1-5 point scale as follows RATINGEXPLANATION 5OUTSTANDING- Exceeds requirements significantly and consistently in all critical work aspects. Showed tremendous initiative and is very proactive . 5EXCELLENT- Performance at the highest standards. possesses and effectively utilized where needed, the knowledge in areas beyond those required for the discharge of critical responsibilities. Exceed requirements in most critical areas. Plans and executes well 4VERY GOOD- Demonstrates effective ski lls in most and essential responsibilities. Some skill areas still need improvement in order to excel at the job. 3. 5GOOD- Demonstrates skills in some essential areas. There is scope for improvement in some critical responsibility areas. Shows initiative. ABOVE AVERAGE- Demonstrates skills in some of the essential responsibilities. Performance is adequate for the current review period. Supervision is required to execute tasks in many areas. 2AVERAGE- Demonstrates average skills in most of the essential responsibilities. Meets targets with continuous supervision. Intensive training is required, 1 at a lower place AVERAGE- Demonstrates Level of skills that has been unsatisfactory and inadequate for the discharge of the essential responsibilities. Consistently fall short of requirements. High level of supervision is required.Assessments duly completed in all esteem, are to be forwarded to HR, in sealed envelopes. CHAPTER-3 The Company/ Organization/ System COMPANY PROFILE AN INTRODU CTION TO BAJAJ FINSERV LIMITED INTRODUCTION INTRODUCTION Bajaj FinServ will make to be one of the top monetary serve businesses in India focused on delivering superior client experience through competitive products and class leading services while providing consistent and superior returns to our shareholders and maintaining the high levels of integrity of Bajaj. Company profileBajaj Finserv Limited (Bajaj Finserv) is a holding company. Bajaj Finserv is the monetary services arm of the Bajaj group. Its financial services businesses include lending, protection, and financial advisory and richesiness management. The Company operates in four segments Insurance, driftmill, Retail financial support and Investments & others. It does lending business Under Bajaj pay Limited (BFL). Its protection business consists of life policy, under the Bajaj allianz breeding Insurance Company (BALIC), and general indemnification, under the Bajaj Allianz General Insurance Company (BAGIC).The C ompanys monetary Advisory and Wealth Management business consists of Bajaj Financial Solutions Limited (Bajaj Finsol), which offers financial products and advises clients on financial and wealth management. In addition, as of March 31, 2012, Bajaj Finserv had wind-farm assets, incorporating 138 windmills in Maharashtra with an installed capacity of 65. 2 megawatt. Bajaj Finserv endeavors to become a full nurture financial services company and be the financial partner to the Indian consumer and help him crosswise his financial needs throughout his lifecycle.Bajaj Finserv is a consumer focused company with emphasis on profitable growth and working(a) efficiency to deliver best results to all its stakeholders. Bajaj Finserv Group companies share common values of Reliability, Innovation and strength and provide customers with high quality products and services. Key focus areas for Bajaj Finserv are Lending, Investment, Protection and Advisory. Bajaj Finserv also has interests in Win d farms with 138 windmills and a total installed capacity of 65. 2 MW BAJAJ FINSERV LIMITED VISIONBajaj Finserv has a vision to become a full fledged financial services company and be the financial partner to the Indian consumer and help him across his financial needs, whether for finance, for investment management, for protection or for post retirement support, throughout his lifecycle. Bajaj Finserv is a consumer focused company with emphasis on profitable growth and operational efficiency to deliver best results to all its stakeholders. MISSION Bajaj Finserv is a consumer focused company with emphasis on profitable growth and operational efficiency to deliver best results to all its stakeholders. COREVALUES ?Trust ?Integrity ? perpetration ?Respect for plenty ?Innovation OBJECTIVE To create value and delight for our stake holders QUALITY POLICY To excel in providing Financial services that meets or Exceeds customer requirements through continual improvements NATURE OF ACTIVITY ? Our Products & Services ?Loans Against Property ? ad hominem Loans ? dividing line Loans ? Home Loans ? Infrastructure Equipment Finance ? Loans Against Securities ? Consumer Durable Loans As a value-added service we also provide insurance services like Group Term Policy and Group Term Suraksha bundled with our products.VARIOUS DEPARTMENTS ?Operations ?Human resources ?Finance ?Networking and systems ? timbre ?Corporate services ?Collection ?Sales ?Product ?Marketing PEOPLE considered as Associates BAJAJ FINSERV believes our people are our strength, & this is the very reason why Bajaj term them as Associates rather than employees. The work culture is people oriented, where individual aspirations are matched with organizational Objectives. Our associates exemplify our customer-oriented work style.The employees at BFL are comfortable working across cultures and across contexts their consistency and dependability lies in their emphasis on creating solutions that are problem-focused, high on quality and quick in terms of time-to-market. Bajaj Group. Its insurance joint ventures with Allianz SE, Germany namely Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited are engaged in life and general insurance business respectively. Its subsidiary Bajaj Finance Limited is a Non Banking Finance Company engaged in consumer finance, SME finance and commercial lending.Bajaj Financial Solutions Limited, a wholly owned subsidiary of Bajaj Finserv Limited is engaged in wealth advisory business. SERVICES AT BAJAJ FINSERV LIMITED Bajaj Finance Limited We are the most diversifed non-bank in the country, the largest moneyman of consumer durables in India and one of the most profitable firms in the category. Hereunder are summary expand of our portfolio of businesses, with a brief description on each. Consumer FinanceConsumer Durables Finance Lifestyle Finance EMI Card Personal Loans Cross Sell Co-branded Credit Cards Two and three whee ler FinanceSalaried Personal Loans SME FinanceMortgage Business Loans commercialised LendingConstruction Equipment Finance Infrastructure Finance Vendor Financing Awards and Accomplishments The recognition that matters the most to us is the one we receive from our customers. That was how it was when we started. That will be even when we have a treasure trove of Industry Recognition and awards Awards Recently, we win the CIO 100 Innovation award for two of our innovations countries such as Canada, Sweden, Australia, Singapore, Vietnam, Hungary and India, the CIO 100 Awards is a truly spheric recognition.It is an acknowledged mark of excellence in enterprise IT. Management Profile Sanjiv Bajaj Managing Director Kevin DSa chief financial officer and President Business development Ranjit Gupta President (Insurance) S. Sreenivasan President (Finance) V. Rajagopalan President (Legal) Sonal R Tiwari Company Secretary collide with SHORE POLICIES PERSONAL BENEFITS ?Leave ?Onsite retur n leave policy ?Personal leave policy ?Loans for fellowship rental deposit ?Home pc ?Telephone at residence ?Facilities to the associates TRAVEL RELATED ? worldwide travel ?Domestic travel ?Conveyance reimbursement ?Car hire Relocation policy ?Relocation border WORK PLACE BASIS ?Working hour ?Dress code ?Identity card ?Business card ?Late/holiday working ?Work ethics ?Shift allowance OTHER POLICIES ?Reward and recognition ?Staff welfare allowance ?Associate referral ?Work ethics ?Higher education BAJAJ FINSERV LIMITED OFFERINGS Organisation Structure Performance Appraisal System at Bajaj Finserv Ltd PERFORMANCE MANAGEMENT APPRAISAL cognitive process PERFORMANCE APPRAISAL FOR ASSOCIATES OF HOD level PURPOSE To appraise the performance of all the associates at HOD level in BAJAJ FINSERV LIMITED PROCEDURE General yearly appraisal is done during the month of April, every year for all the confirmed associates who are on the rolls as on 31st December of the previous year. Distribution of Appraisal pisss for annual appraisal, the HR will distribute the appraisal forms to the CEO for further distribution to the concerned valuators. Self- reinforcement At the start of the appraisal process, every assessee will fill a self-documentation form and give it to the concerned Appraiser. Appraisal by Assessor The Assessor will perform the sagaciousness upon receiving the self Appraisal Form from the assessee.The forms to be used for appraisal is as given in the table below Sl. NoTitle of the formUsed for Appraisal of 1Self Documentation formAll Associates at HOD Level 2Performance Appraisal Form(HOD)All Associates at HOD level Acceptance of Appraisal The Assessor will discuss the assessment results with the assessee. If the assessee barracks to the assessment, then the assessee and the concerned assessor will sign on the Performance Appraisal Form and the first assessor (CEO) will also give his final authorization.The appraisal form, complete in all respects is received from the CEO. follow out of Appraisal The HOD (HR) will issue the revised salary/ promotion letters to the assesse found on the performance Appraisal form and discussions with the concerned first assessor. HR informs the revised salary/ promotion details of an assessee to finance for processing the same by updating the Associate database. Appraisal Records the HOD (HR) will maintain the performance appraisal records in the personal file of each associate. PERFORMANCE APPRAISAL FOR ASSOCIATES BELOW HOD LEVELPURPOSE To appraise the performance of all the associates below HOD level in BAJAJ FINSERV LIMITED. PROCEDURE General Annual appraisal is done during the month of April, every year for all the confirmed associates who are on the rolls as on 31st December of the previous year. Distribution of Appraisal Forms For annual appraisal, the HR will distribute the appraisal forms to the HOD for further distribution to the concerned appraisers. Self-Documentation At the start of the appr aisal process, every assessee will fill a self-documentation form and give it to the concerned Appraiser. Appraisal by Assessor the Appraiser first assessor) will perform the assessment upon receiving the self Appraisal Form from the assessee and forward the performance appraisal form to the ref (second assessor). The forms to be used for appraisal is as given in the table below Sl noTitle of the formUsed for appraisal of 1Self Documentation form technicalAll technical Associates below HOD Level 2Self Documentation form Non technicalAll non- technical Associates below HOD Level 3Performance Appraisal Form (PL/PM)All associates at designer and above level but below HOD Performance Appraisal Form (Team members)All Associates at Team member (Manager/asst manager) level 5Performance Appraisal Form (Non Technical)All Associates below HOD Level in non- technical Dept The level of the associate to be appraised in areas other than technical is as per the policy Guidelines . Appraisal by second Assessor The proofreader (second Assessor) will review the assessment upon receiving the performance appraisal form from the appraiser (first assessor). During annual appraisal, the first/ second assessor will give the performance rating based on joint assessment. Acceptance of Appraisal The appraiser (first assessor) will discuss the assessment results with the assessee. If the assessee add togethers to the assessment, then the assessee and the concerned appraiser (first assessor) will sign on the performance appraisal form and the form will be forwarded to the second assessor/ HOD for final authorization. In case of contradict, the appraisal form will be referred to the concerned reviewer (second assessor). The second assessor will be responsible for further action on the same.For all cases of contravene and where no second assessor exists, concerned HODs will act as the second assessor. The appraisal form, complete in all respects is received by HR form the respective head of the department. Follow-up of Appraisal The HOD (HR) will issue the revised salary/ promotion letters through reporting managers to the assesses based on the performance Appraisal form and discussions with the concerned head of the department. HR informs the revised salary/ promotion a detail of an assessee to finance for processing the same by updating the Associate database. Appraisal Records the HOD (HR) will maintain the performance appraisal records in the personal file of each associate. APPRAISAL FORMAT SELF DOCUMENT FORM The self-document form mainly includes all those contents, which are needed for the evaluation of performance appraisal. The employees through the online facility fill this document form. This includes the general information like the associate id, name, designation, department, role/level, qualification, and date of joining, location, and applicable experience. This form also includes the assessee remarks that have evaluated the form. The various a reas like the employees achievement, area where the employee have not performed up to the expectation, assessees strengths, areas of improvement are also included. These areas are evaluated both by the Assessee, Assessor 1 and Assessor 2. The training programs be and which the employee would like to attend is also included. The career aspiration of the employee is also a part of the self-document form . GENERAL INSTRUCTIONS FORTECHNICAL ASSOCIATES The Self-documentation form should be complete in all respects. 1. What do you see as your major achievements for the period under review? . What Factor(s) enabled you in your achievement? 3. Constraints, which affected your overall performance. List your own efforts to exploit the opportunities and overcome the difficulties? ( take on your strategies and tactics) 4. Your initiatives and contributions to the organization during the review period e. g. Cost savings, revenues, profits, technology enhancements, process improvements etc 5. Pr oject related data for the periodic review, which includes name of the project, role played by you in each of the project and number of hours put in. 6.What have you gained from the training programmes you have attended and where you have applied the learning? 7. Your key result areas for next review period. One of the key result areas should be for self-development. GENERAL INSURANCE FOR NON TECHNICAL ASSOCIATES The Self-documentation form should be complete in all respects. I. What do you see as your major achievements for the period under review? II. What Factor(s) enabled you in your achievement? III. Constraints, which affected your overall performance. List your own efforts to exploit the opportunities and overcome the difficulties? Include your strategies and tactics) IV. Your initiatives and contributions to the organization during the review period e. g. Cost savings, revenues, profits, technology enhancements, process improvements etc V. What have you gained from the train ing programmes you have attended and where you have applied the learning? VI. Your key result areas for next review period. One of the key result areas should be for self-development. CRITERIA OF APRRAISAL RELATED AREAS Task related areas Achievement of results Output of work Quality of work Quality system Conceptual skills Total perspective Integrated skillsProactive skills Analytical and Planning skills Human skills Leadership major power to inspire and motivate Interpersonal family Tact and cooperation Training and development of subordinates Communication Resolution of conflict Functional skills Job knowledge Planning and organizing Decision-making Personality attributes Openness Empathy and sensitivity Integrity (intellectual and moral) Flexibility/Adaptability/ unequivocal outlook Perseverance Creativity/Innovativeness Capacity to withstand stress Discipline Dependability Loyalty and Commitment Self-confidence Appearance and Bearing. CHAPTER-4DATA ANALYSIS & INFERENCES Secti on -I Regarding Setting Goals 1. Project goals are different from functional goals a) potently nurse b) go over c) powerfully take issue d) protest TABLE 2. 1 OptionsNo of respondentsWeightsTotal build powerfully accept9218 halt61161 powerfully disagree7-2-14 Disagree23-1-23 GRAPH 2. 1 demonstrationbulk of the respondents opined that project goals and functional goals are one and the same with a mean of 0. 42. 2. If I can perform consistently it will see me in higher position sort of than later a) powerfully agree b) agree c) strongly disagree d) disagree TABLE 2. OptionsNo of respondentsweightsTotal wee-wee powerfully agree22+244 Agree54+154 strongly disagree12-2-24 Disagree12-1-12 GRAPH 2. 2 conclusion volume of the respondents are agreeing that they can expect themselves in higher position if they perform consistently with a weighted average of 0. 62. 3. My job presents scope for using my innovating skills in making my Decisions a) potently agree b) agree c) str ongly disagree d) disagree TABLE 2. 3 OptionsNo of respondentsweightsTotal score powerfully agree22+244 Agree13+113 strongly disagree11-2-22 Disagree51-1-51 GRAPH 2. 3Inference bulk of the respondents opined their job does not showing present scope for using their innovating skills in making decisions with a mean of 0. 16. 4. Percent of target matching with goals in 2008 09 a) 80%-100% b) 60%-80% c) 40%-60% d) 20%-40% TABLE 2. 4 OpinionNo of respondentsValue in percentage 80%-100%3333% 60%-80%2929% 40%-60%3131% 20%-40%77% GRAPH 2. 4 Inference 33% of respondents 80%-100%, 31% of respondents 40%-60%, 29% of respondents 60%-80% and 7% of respondents 20%-40%. The analysis shows that only few employees can meet their target on time.Section B About the role of superior 5. I dont pause to discuss any of my personal problems with my Superior a) strongly agree b) agree c) strongly disagree d) disagree TABLE 2. 5 OptionsNo of respondentsweightsTotal score potently agree14+228 Agree61+161 powerfully disagree5-2-10 Disagree20-1-20 GRAPH 2. 5 Inference Majority of the respondents agree that they do not hesitate to discuss their personal problems with their superior with a weighted score of 0. 6. 6. My superior acknowledging and contributing to set the goals a) Strongly agree b) agree c) strongly disagree d) disagree TABLE 2. Options No of respondentsweightsTotal score Strongly agree9+218 Agree 77+177 Strongly disagree5-2-10 Disagree 9-1-9 GRAPH 2. 6 Inference Majority of the respondents agree that their superiors acknowledge and contribute to set their goals with a weighted average of 0. 76. 7. My immediate superior frequently motivates me a) Strongly agree b) agree c) strongly disagree d) disagree TABLE 2. 7 Options No of respondentsweightsTotal score Strongly agree15+230 Agree 67+167 Strongly disagree6-2-12 Disagree 12-1-12 GRAPH 2. 7 Inference near of the respondents agree that their immediate superior frequently otivates them with a mean of 0. 73. 8. I want my a ppraisal to be a) Confidential b) open TABLE 2. 8 OpinionNo of respondentsValue in percentage Confidential6666% Open3434% Total100100 GRAPH 2. 8 Inference 66% of employees desire that their Performance Appraisal must be confidential and remaining 34% accept it to be open. 9. My interpersonal team relationship with peer, superiors and subordinates a) genuinely good b) good c) adequate d) inadequate TABLE 2. 9 OptionsNo of respondentsweightsTotal score Strongly agree29+258 Agree59+159 Strongly disagree12-2-24 Disagree0-10 GRAPH 2. 9 InferenceMajority of the respondents have a positive opinion towards the interpersonal team relationship with peer, superiors and sub- ordinates is good with a mean of 0. 93 . 10. I olfactory property proud and motivated when my superior appreciates my work a) Strongly agree b) agree c) strongly disagree d) disagree TABLE 2. 10 OptionsNo of respondentsweightsTotal score Strongly agree35+242 Agree57+162 Strongly disagree4-2-18 Disagree4-1-8 GRAPH 2. 10 In ference Majority of the respondents observe proud and get motivated when their superior appreciates their work with weighted average of 1. 15. Section c feedback and evaluation 1. Iam open to the feedback given by the appraiser a) Always b) sometimes c) rarely TABLE 2. 11 OpinionNo of respondentsValue in percentage Always6464% Some times3030% Rarely66% GRAPH 2. 11 Inference 64% of the respondents always, 30% of the respondents sometimes, 6% of the respondents rarely. Majority of the respondents are open to their feedback always. 12. Employee opinion about frequency of appraisal system a) Annually b) half-yearly c) quarterly TABLE 2. 12 OpinionNo of respondentsValue in percentage Annually2828% Half-yearly5858% Quarterly1414% GRAPH 2. 12 Inference 8% of the respondents half-yearly. 28% of the respondents annually, 14% of the respondents quarterly. The analyst gives a clear picture that most of the associates like to get appraisal half-yearly. 13. Opinion on performance linked promoti onal policy a) Strongly agree b) agree c) strongly disagree d) disagree TABLE 2. 13 OptionsNo of respondentsweightsTotal score Strongly agree21+242 Agree62+162 Strongly disagree9-2-18 Disagree8-1-8 GRAPH 2. 13 Inference Majority of the respondents agree that the promotions are based on the rating derived from performance appraisal with weighted average of 0. 8. 14. The HRD department follows up the training needs set using appraisal seriously a) Strongly agree b) agree c) strongly disagree d) disagree TABLE 2. 14 OptionsNo of respondentsweightsTotal score Strongly agree7+214 Agree21+121 Strongly disagree18-2-36 Disagree54-1 -54 GRAPH 2. 14 Inference Majority of the respondents are moderately agreed that the HRD dept follows the training needs identify the appraisal with a mean of 0. 55. 15. fit to my opinion the following system is useful for our organization a) Team appraisal b) 360 degree appraisal c) self appraisal TABLE 2. 15OpinionNo of respondentsValue in percentage Team app raisal2929% 360 degree appraisal3636% Self appraisal3535% GRAPH 2. 15 Inference 36% of respondents 360 degree appraisal, 35 % of the respondents self appraisal , 29% of the respondents team appraisal, majority of the respondents opined that the 360 degree appraisal is suitable for their organization. 16. Team work is considered as a factor in appraising employee performance a) Strongly agree b) agree c) strongly disagree d) disagree TABLE 2. 16 OptionsNo of respondentsweightsTotal score Strongly agree24+248 Agree58+158 Strongly disagree8-2-16 Disagree10-1 10 GRAPH 2. 16 Inference Most of the respondents agree that team work is considered as a factor in appraising their employee performance with a mean of 0. 8. 17. My opinion on present rating system a) real good b) good c) fair d) poor TABLE 2. 17 OptionsNo of respondentsWeightsTotal score genuinely good13339 Good562112 Fair18118 Poor13-1-13 GRAPH 2. 17 Inference Most of the respondents are opined that their present rating system is good with a weight age score of 1. 56 Section D organization effectiveness 18. At BFL the appraisal system provides for an open discussion between the Appraiser and appraise ) Strongly agree b) agree c) strongly disagree d) disagree TABLE 2. 18 OptionsNo of respondentsweightsTotal score Strongly agree18+236 Agree67+167 Strongly disagree8-2-14 Disagree7-1 -7 GRAPH 2. 18 Inference Majority of the respondents are agree that at BFL the appraisal system provides for a open discussion between the appraiser and appraise with a mean of 0. 82. 19. The appraisal system at BFL given each appraise an idea of what is expected Of him next year a) Very true b) true c) partly true d) not true TABLE 2. 19 OptionsNo of respondentsweightsTotal scoreVery true15345 True532106 Partly true22122 Not true10-1-10 GRAPH 2. 19 Inference Majority of the respondents opined that A. S at BFL given each appraise an idea of what is expected of him next year with a weighted average of 1. 63 20. Up to what extent d o the higher federal agency implement the Suggestions provide By employee a) All times b) some times c) none TABLE 2. 20 OpinionNo of respondentsValue in percentage All times1818 Some times6767 None1515 GRAPH 2. 20 Inference 67% of the respondents sometimes, 18% of the respondents all times, 15% of the respondents none.Majority of the respondents agreeing that the higher authority implement the suggestion provide by employee sometimes. 21. Management support to improve the job performance a) strongly agree b) agree c) strongly disagree d) disagree TABLE 2. 21 OptionsNo of respondentsWeightsTotal score Strongly agree20+240 Agree67+167 Strongly disagree5-2-10 Disagree8-1 -8 GRAPH 2. 21 Inference Majority of the respondents are agree that the management supports to improve their job performance of employees with a mean of 0. 89. 22. Performance appraisal helps me to know my strengths and weakness after the Appraisal ) Strongly agree b) agree c) strongly disagree d) disagree TABLE 2. 2 2 OptionsNo of respondentsweightsTotal score Strongly agree17+234 Agree61+161 Strongly disagree11-2-22 Disagree11-1 -11 GRAPH 2. 22 Inference Majority of the respondents opined performance appraisal helps to know their strengths and weakness after the appraisal with a mean of 0. 62. 23. The performance appraisal is based on the real records and facts but not on Impressions a) Strongly agree b) agree c) strongly disagree d) disagree TABLE 2. 23 OptionsNo of respondentsweightsTotal score Strongly agree14+228Agree66+166 Strongly disagree9-2-18 Disagree11-1-11 GRAPH 2. 23 Inference Most of the respondents agree that performance appraisal is based on the real records and facts but not an impressions with a weighted of 0. 65. 24. Iam salaried worth my contribution a) Strongly agree b) agree c) strongly disagree d) disagree TABLE 2. 24 OptionsNo of respondentsweightsTotal score Strongly agree10+220 Agree66+166 Strongly disagree13-2-26 Disagree11-1-11 GRAPH 2. 24 Inference Most of the resp ondents are moderately accepting they pay worth their contribution with a weighted average of 0. 49. CHAPTER-6Findings, Suggestions & Conclusion Findings 1 Majority of the respondents opined that project goals and functional goals are one and the same with a mean of 0. 42. 2. Majority of the respondents are agree that they can expect themselves in higher position if they perform consistently with a weighted average of 0. 62. 3. Majority of the respondents opined their job does not showing present scope for using their innovating skills in making decisions with a mean of 0. 16. 4. 33% of respondents 80%-100%, 31% of respondents 40%-60%, 29% of respondents 60%-80% and 7% of respondents 20%-40%.The analysis shows that only few employees can meet their target on time. 5. Majority of the respondents agree that they do not hesitate to discuss their personal problems with their superior with a weighted score of 0. 6. 6. Majority of the respondents agree that their superiors acknowledge an d contribute to set their goals with a weighted average of 0. 76. 7. Most of the respondents agree that their immediate superior frequently motivates them with a mean of 0. 73. 8. 66% of employees desire that their Performance Appraisal must be confidential and remaining 34% accept it to be open. . Majority of the respondents have a positive opinion towards the interpersonal team relationship with peer, superiors and sub- ordinates is good with a mean of 0. 93 . 10. Majority of the respondents disembodied spirits proud and get motivated when their superior appreciates their work with weighted average of 1. 15. 11. 64% of the respondents always, 30% of the respondents sometimes, 6% of the respondents rarely. Majority of the respondents are open to their feedback always. 12. 58% of the respondents half-yearly. 28% of the respondents annually, 14% of the respondents quarterly.The analyst gives a clear picture that most of the associates like to get appraisal half-yearly. 13. Majority of the respondents agree that the promotions are based on the rating derived from performance appraisal with weighted average of 0. 78. 14. Majority of the respondents are moderately agree that the HRD dept follows the training needs identify the appraisal with a mean of 0. 55. 15. 36% of respondents 360 degree appraisal, 35 % of the respondents self appraisal, 29% of the respondents team appraisal, majority of the respondents opined that the 360 degree appraisal is suitable for their organisation. 6. Most of the respondents agree that team work is considered as a factor in appraising their employee performance with a mean of 0. 8. 17. Most of the respondents are opined that their present rating system is good with a weight avg score of 1. 56 18. Majority of the respondents is agree that at BFL the appraisal system provides for an open discussion between the appraiser and appraise with a mean of 0. 82. 19. Majority of the respondents opined that A. S at BFL given each appraise an id ea of what is expected of him next year with a weighted average of 1. 3. 20. 67% of the respondents sometimes, 18% of the respondents all times, 15% of the respondents none. Majority of the respondents agreeing that the higher authority implement the suggestion provide by employee sometimes. 21. Majority of the respondents are agreeing that the management supports to improve their job performance of employees with a mean of 0. 89. 22. Majority of the respondents opined performance appraisal helps to know their strengths and weakness after the appraisal with a mean of 0. 62. 23.Most of the respondents agree that performance appraisal is based on the real records and facts but not an impressions with a weighted of 0. 65. 24. Most of the respondents are moderately accepting they paid worth their contribution with a weighted average of 0. 49. SUGGESTIONS 1. Implementation of innovative ideas in decision making may be encouraged by the management. 2. The management may design the perform ance linked promotions. 3. The pursuit of HRD department may be considered by management in assessing the training needs of employees based performance appraisal system. 4.The superiors should be more approachable when the employees come to them with improvement technique. On the whole the Performance Appraisal system at Bajaj Finserv Limited is Satisfactory. There are few areas which need due attention. The rating must be based purely on the performance. CONCLUSION The conclusions that emerged from the study of Performance Appraisal System at Bajaj Finserv Limited are that the sampled associates prefer that some change should be brought down in the existing system. The associates feel that the best source of motivation is encouragement by superiors.A 360-degree appraisal system has been recommended by some of the associates. Training needs to be identified based on the ratings and effective training programs must be conducted where in the associates can fulfill self development ne eds as well as organizational needs. bound OF THE STUDY ?Options expressed by the employee in the questionnaire may not be very genuine. ?What the associates actually feel may not be truly expressed and hence there is the conclusion drawn from them need not apply to the whole organization. Could reach to a limited number of documents of different insurance companies in regard to the management and other policies and resultant figures so as to identify the exact cause of their gaol in performance. ?Non-Proficiency in technical aspects of insurance companies might have hindered the best analysis of the findings. . Bibliography WEBSITES www. bajajfinserv. com www. answers. com www. performanceappraisal. com www. google. com www. yahoo. com NEWSPAPERS AND MAGAZINE The Hindu Personnel management Business today ICFAI magazines BOOKS Personnel Management Edwin FlippoHuman Resources and Personnel Management-k. Ashwathappa Essential of Human Resource Management-P. SubbaRao Personnel Manag ement-C. Memoria Performance Management and Coaching-Prem Chadda Appendices Questionnaire Section -I Regarding Setting Goals 1. Project goals are different from functional goals a)Strongly agree b) agree c) strongly disagree d) disagree 2. If I can perform consistently it will see me in higher position sooner than later a) Strongly agree b) agree c) strongly disagree d) disagree 3. My job presents scope for using my innovating skills in making my Decisions ) Strongly agree b) agree c) strongly disagree d) disagree 4. Percent of target matching with goals in 2007 08 a) 80%-100% b) 60%-80% c) 40%-60% d) 20%-40% Section-II About the role of Superior 5. I dont hesitate to discuss any of my personal problems with my Superior a) Strongly agree b) agree c) strongly disagree d) disagree 6. My superior acknowledging and contributing to set the goals a) Strongly agree b) agree c) strongly disagree d) disagree 7. My immediate superior frequently motivates me a) Strongly agree b) agree c) str ongly disagree d) disagree 8.I want my appraisal to be a) Confidential b) open 9. My interpersonal team relationship with peer, superiors and subordinates a) Very good b) good c) adequate d) inadequate 10. I feel proud and motivated when my superior appreciates my work a) Strongly agree b) agree c) strongly disagree d) disagree 11. Iam open to the feedback given by the appraiser a) Always b) sometimes c) rarely Section-III Regarding Feedback and Evaluation 11. Iam open to the feedback given by the appraiser a) Always b) sometimes c) rarely 12. Employee opinion about frequency of appraisal system ) Annually b) half-yearly c) quarterly 13. Opinion on performance linked promotional policy a) Strongly agree b) agree c) strongly disagree d) disagree 14. The HRD department follows up the training needs Identified using appraisal seriously a) Strongly agree b) agree c) strongly disagree 15. According to my opinion the following system is useful for our organization a) Team appraisal b) 360 degree appraisal c) self appraisal 16. Team work is considered as a factor in appraising employee performance a) Strongly agree b) agree c) strongly disagree d) disagree 17.My opinion on present rating system a) Very good b) good c) fair d) poor Section IV organization effectiveness 18. At BFL the appraisal system provides for an open discussion between the Appraiser and appraise a) Strongly agree b) agree c) strongly disagree d) disagree 19. The appraisal system at BFL given each appraise an idea of what is expected Of him next year a) Very true b) true c) partly true d) not true 20. Up to what extent do the higher authority implement the Suggestions provide By employee a) All times b) some times c) none 1. Management support to improve the job performance a) Strongly agree b) agree c) strongly disagree d) disagree .22. Performance appraisal helps me to know my strengths and weakness after the Appraisal a) Strongly agree b) agree c) strongly disagree d) disagree 23. The performanc e appraisal is based on the real records and facts but not on Impressions a) Strongly agree b) agree c) strongly disagree d) disagree 24. Iam paid worth my contribution a) Strongly agree b) agree c) strongly disagree d) disagree