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Introduction

Almost every organization in one way or another goes through a periodic ritual, formally or informally, known as performance appraisal. The formal performance appraisal has been called a tool of management, a control process, an activity and a critical element in human resources allocation. Uses for performance appraisal have included equal employment opportunity considerations, promotions, transfer and salary increases. Primarily performance appraisal has been considered an overall system for controlling an organization. Performance appraisal has also been called an audit function of an organization regarding the performance of individuals, groups and entire divisions.
Performance appraisal may be defined as a structured formal interaction between a subordinate 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 improvement and skills development.


Statement of the problem:
Industrial organizations use systematic performance appraisal procedures for both non-supervisory and managerial employees. Need for performance appraisal system is as follows:
• It helps the supervisor to evaluate the performance of his employees systematically and assign that work in which they are best suited.

• It helps in guiding and controlling the behavior as well as the work of the employees.

• The ability of the staff is recognised and can be adequately rewarded.

• It provides information to diagnose deficiencies in the employee’s skill, knowledge and determine the training and development need.

• Maintain fair relationships with groups.





Concepts & Review of literature:

Concepts:
• Performance Appraisal:
Performance Appraisal is a systematic and objective way of judging the relative worth or ability of an employee in performing his/her task. 1
• Motivation:
Motivation is the willingness to extent toward the accomplishment of goal or need. 2
• Training:
Training is the act of increasing the knowledge and skills of an employee for doing a particular job.3
• Management Development:
Development means the process by which managers acquire not only skills and competency to do their present jobs, but also capabilities for future managerial tasks.4

1.Khanka SS : Human resource Management, S. Chand & Company Ltd 2008, P-343
2. Khanka SS : Organisational Behaviour, S. Chand & Company Ltd 2009, P-201
3. Chhabra TN : Principles & Practice of Management, Dhanpat Rai & co.(P) Ltd 2008, P-394
4. Chhabra TN : Principles & Practice of Management, Dhanpat Rai & co.(P) Ltd 2008, P-394

Review of literature:
Performance appraisal is systematic way of judging the relative importance of an employee in performing his/her task. It is undertaken for the variety of purpose such as to consider employees for salary increases, promotions, transfer and termination of services, to determine training and development needs of the employee, and to establish basis for research and reference relating to employee matters.
Denhardt (1991) defines performance appraisal as a specific evaluation with respect to an individual’s progress in completing specified tasks.
Devries, Morrison, Shullman and Gerlach (1981) define performance appraisal as a process by which an organization measures and evaluates an individual employee’s behavior and accomplishments for a finite period.
Moulder (2001) states that performance appraisals are valued for defining expectations and measuring the extent to which expectations are met. She goes on to state that appraisals can make clear to employees where they are having success and where they need to improve performance. Moulder indicates that appraisals are useful in setting goals and in fostering improved communications among work groups and between employees and supervisors.
Before the 1960’s, performance evaluations were designed primarily as tools for the organization to use in controlling employees (Eichel and Bender, 1981). Eichel and Bender go on to state that past performance was used to guide or justify management’s actions in dealing with the employee. At the time, according to these authors, performance appraisal provided the basis for salary, retention, discharge, or promotional decisions.
Over the past quarter century, the purpose of performance appraisal has shifted from tools supporting the activities of management to an increasing trend towards personnel development (Eichel and Bender,1984).
Vroom (1990) states that formal performance appraisal plans can be designed to meet the following key needs: (a) the organization; (b) the supervisor; and © the employee. He stresses the need for effective evaluation as it can effectively serve these critical areas.
ICMA (2005) states that almost all employees are eager to know how well they are doing in their jobs, but many dread the meetings in which their performance is to be discussed.

Objectives:
• To study the effectiveness of the current performance appraisal system in BSNL
• To assess, whether the current performance appraisal system motivates the employee.
• To find out the opinion of the employees about the present system.
• To find out whether performance appraisal system identifies any training needs & development.
• To propose suitable suggestion, if required, regarding the performance appraisal system


FINDINGS

Performance appraisal has also been called an audit function of an organization regarding the performance of individuals, groups and entire divisions. Performance appraisal also helps in assigning right job to right person and thus prevents the organization from money drain in human resources. The following are findings from the study conducted at BSNL.

1. An attempt to the age in the study reveals that 46 percent of the employees belongs to 40-50 yrs.
2. An attempt to the gender in the study reveals that 54 percent of the employee belongs to female.
3. Regarding the experience of the employee, the study reveals that 60 percent of the employees have 20-30 yrs of experience.
4. Regarding the income of the employee, the study reveals that 78 percent of the employees have salary between Rs. 40000-50000.
5. An analysis of the familiarity with the present appraisal system reveals that 86 percent of the employees are familiar.
6. An analysis of the attributes rated in the appraisal system shows, 76 percent agree that it helps to reveal the performance of the employee.
7. Regarding the time consumption of the system, the study reveals that 47 percent disagree that it is time consuming.
8. An analysis of whether the appraisal helps to identify the strength and weakness, 74 percent agree to it.
9. Regarding the clarity of objective, the study reveals that 80 percent agree to it.
10. Regarding the self evaluation, the study reveals that 88 percent agree that the appraisal help them in self evaluation.
11. An analysis on the employee opinion considered for appraisal reveals that 59 percent agree to it.
12. Regarding the rater’s knowledge of employee’s job, the study reveals that 79 percent agree that rater have clear knowledge.
13. Regarding the feedback, the study reveals that 68 percent agree that feedback is given to them after appraisal.
14. An analysis on weakness of the employee communicated in non-threatening manner reveals that 72 percent agree to it.
15. An analysis on whether the management provides counseling after the appraisal reveals that 36 percent agree and 36 percent disagree to it.
16. Regarding the training after the appraisal, the study reveals that 67 percent agree that the management provides training if required.
17. Regarding the performance improvement, the study reveals that 88 percent agree that the appraisal system helps to improve their performance.
18. Regarding the rewards, the study reveals that only 46 percent agree that rewards are given according to the performance.
19. Regarding the performance, the study reveals that 90 percent are of the opinion that performance requires keep learning new things.
20. An analysis on whether they are satisfied with the appraisal system shows that 68 percent are satisfied.





SUGGESTIONS

• The employees are not that much confident about the fact that their performance is been measured correctly, that is because of the lack of transperancy from the part of the top management. Hence they should take enough action so that the subordinates does not have feeling that the wrong person is given merit, which will let down their morale and performance.
• Employee participation is minimum in the performance mangement and the performance appraisal system in the company. Hence I suggest them to make sure enough participation of employees in such decision making through meetings or opinion polls etc.
• The company should give achiveble goals to the employees.
• Many employees feels that proper feedback is not given after the appraisal. To improve performance, feedback is necessary so management should take necessary steps for that.
• To improve performance, motivation is a factor. Most of the employees have a positive attitude towarsd learning new things. Mangement should utilise this and motivate the employee.
• Previously BSNL was using CR (confidential report) for appraisal. Recently they have introduced APAR. Since it is new method for the employees, mangement should take steps to educate them.


Conclusion

The study reveals that Apprisal system in BSNL is somewhat satisfactory. Most of the employees are familiar with the present apprasial system in the organisation. They have the opinion that appraisal help to improve their performance. Main problem revealed through the study was that, employees are not confident that their performance is been measured correctly. And other one, employee participation is minimum in the performance mangement and the performance appraisal system in the company.Management should take proper steps to overcome these issues.