Performance Apprisal

Performance Appraisal
CHAPTER 1
 INTRODUCTION
 MEANING AND DEFINITION
 PERFORMANCE APPRAISAL AS A NATURAL PROCESS
OF MANAGEMENT
 OBJECTIVES OF PERFORMANCE APPRAISAL
 BENEFITS OF PERFORMANCE APPRAISAL
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INTRODUCTION:
Today’s working culture demands a great deal of commitment and effort

from the employees, who in turn naturally expect a great deal more
from their employers. The development of much more participative
style of management in many organizations is a positive step towards
meeting such heightened expectations. This participative style can be
expressed in a variety of practical ways. For eg: work teams, quality
circles, and of course regular performance appraisals.
Appraising the performance of individuals and groups and organizations

has been a common practice in all societies. While in some instances,
these appraisal processes are structured and formally sanctioned, in
other instances they are informal and integral part of daily activities.
Performance appraisal is the method of evaluating the behavior of an
employee at the work place, normally including both quantitative and
qualitative aspects of job performance. Performance here refers to the
level of accomplishments. In the sense that there are expectations from
every person in an organization, a certain level of output or
performance is expected from all. How an employee actually performs
in the light of the expectations determines whether his performance is
exceptional, good, average or below that. It is always measured in term
of results. This process has very a high implication on various other HR
functions, like recruitment, training, manpower planning etc.
It is important that the employees are aware of their goals, how to

achieve them, how they are matching up to them, what should be done
if they are not. There is not one right way of doing the performance
appraisals. The most appropriate route to be taken will depend upon the
current style and status of the organization. People do have a negative
attitude about the performance appraisals. Many have the complaints
such as, “It’s just yearly rollicking”, or “It is like school report time”
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or “Nothing comes out of it anyway.” A significant consideration in

choosing how to go about introducing or revising a performance
appraisal scheme will be an understanding of how such attitudes have
been perpetuated and how they might be overcome. People carry bad
experiences with them for a long time, in this case, perhaps from job to
job. Much has to be done at the time of introducing or revising a
performance appraisal scheme to reassure those who will be involved
that the intentions behind conducting the performance appraisal are
sincere and positive.
Performance appraisal must be seen as an intrinsic part of a manger’s

responsibilities, not an unwelcome an time consuming addition to them.
It is about improving performance and ultimately the effectiveness all
apart of the manager’s remit.
1.1 MEANING AND DEFINITION:
In simple terms performance appraisal may be understood as the

assessment of an individual’s performance in a systematic way, the
performance being measured against such factors as job knowledge,
quality, quantity of output, initiative, leadership abilities, supervision,
dependability, co-operation, judgement, verstality, health, and the
like. Assessment should not be confined to past performance alone.
Potentials of the employee for future performance must also be
assessed.
A formal definition of performance appraisal is:
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“It is the systematic evaluation of the individual with respect to

his or her performance on the job and his of her potential for
development.”
A more comprehensive definition is:
“Performance appraisal is a formal structured system of

measuring and evaluating an employee’s job, related behavior, and
outcomes to discover how and why the employee is presently
performing on the job and how the employee can perform more
effectively in the future so that the employee, organization, and the
society all benefit.”
The second definition includes employee’s behavior as part of the

assessment. Behavior can be active or passive – do something or do
nothing. Either way behavior affects job results. The other terms used
for performance appraisal are: performance rating, employee
assessment, employee performance review, performance appraisal,
performance evaluation, employee evaluation and merit rating. In a
formal sense, employee assessment is as old as the concept of
management.
MEANING:
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Performance in a job is a matter, which needs to be considered both in

terms of results achieved and behavior demonstrated. Results required in
relation to quantity, quality or timing can be established in most aspects if
a large number of jobs. Comparing results reached to results required is
essential in evaluating the performance. Reviewing results in the context of
actions and behavior is necessary to develop a full understanding of
individual performance. In determining what actions have led to success or
the lack of it, this aspect of examining performance will represent a
significant element in forming plans for the future, so that strengths can be
built upon and weakness addressed. There are, of course, certain jobs or
features of certain jobs, where it is not always possible to state a required
result or standard that clearly. In these instances considering behavior
assumes a greater significance when appraising the performance. The
manager for the home for the elderly, for example would be able to show
ability in controlling budgets in a tangible manner by keeping within
certain financial guidelines. The most important part of such job however,
would concern the health and well being of residents. Apart from being
difficult to measure, these aspects could be somewhat beyond the
manager’s control, and it would be unfair to make an assessment on the
amount of medicines used or the mortality rate. Therefore it follows that
the manager’s actions in promoting the good health and well- being of the
residents are the most relevant factor in evaluating performance, rather
than the results. In this case, examples of such action might be ensuring
that specialized help is summoned when necessary, listening to residents
who want to talk about their problems, or perhaps arranging appropriate
diversions and entertainment.
Performance appraisal appraises performance of an operating unit, like

department or section, or of an individual. The Government of India may
appraise the performance of the BARC as an organization. The Director of
BARC may appraise the performance or any department of division. These
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appraisals start from facts/data, lead to opinions on adequacy/

appropriateness and should lead further to some decisions being made on
whether any changes are necessary in the manner or direction of work of
the appraised unit, individual. At the operating unit level the decision may
relate to the allocations of resources. The decisions may also relate to the
continuance.
In the case of the individual, the appraisal may be of
a. His outputs (how well has the work been done) or of
b. Inputs (what are his skills, behavior patterns, motivation etc.)

The appraisal of outputs helps in deciding on rewards, commendations etc.
The appraisal of inputs helps in deciding on development, including
promotion transfer (job or location) or both. These decisions have
implications in terms of the careers of persons and therefore the quality of
appraisal is major concern in organization all over the world. Some of these
controversies and the suggested remedies will be discussed during the
session.
1.2 PERFORMANCE APPRAISALS AS A NATURAL PROCESS OF

MANAGEMENT:
Performance appraisal as a natural process of management for three

reasons:
MEASURING PERFORMANCE:
Performance can be used as a means of measuring performance in
accordance with the adage: ‘If you cannot measure it you can’t manage it.’
But the purpose of measurement is to indicate not only where things are not
going according to the plan (i.e. there is a negative variance from the
anticipated result) but also to identify where things are going well (a
positive variance) so that steps can be taken to build on success.
Performance appraisal is means for creating and maintaining a ‘climate of
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success in the organization.’ Have a success – oriented strategy does not

only mean expecting people to succeed but also if they do not succeed,
helping them to succeed.
1.2.1 IMPROVING PERFORMANCE:

Building a climate of success involves taking specific steps to improve
the performance of individuals or teams. Because managers depend on that
performance, they have a major and continuing responsibility to take
whatever action is necessary to improve it. This is an entirely natural
process of management and whenever anyone completes a task or project
good managers will consciously or unconsciously consider the following
points:
 How well was that done?
 Could it have been better?
 Was the right person selected for the job?
 In what ways, if any, does the person need to improve?
 What guidance or help can be provided to this person to ensure that
better results are achieved next time?
1.2.2 EXERCISING LEADERSHIP:

There are many ways of defining leadership. Basically, however it is
about getting things done through people. Leaders point out the way and
ensure that everyone gets there. Leadership is about encouraging and
inspiring individuals and teams to give their best to achieve a desired
result. Managers as leaders have to achieve the task. That is why they and
their teams exist. The leader’s role is to ensure that the team’s purpose is
fulfilled. If it is not, the result is frustration, disharmony, criticisms and,
eventually perhaps disintegration of the group.
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Achieving the task involves leaders in getting answers to the following

questions:
 What needs to be done and why?
 What results have to be achieved?
 What problems have to overcome?
 Is the solution to these problems straightforward or is there a
measure of ambiguity?
 Is this a crisis situation?
 What is the time-scale for completing the task?
In the light of this analysis leaders have to take whatever steps are
necessary to motivate the individuals in their team and also, importantly; to
develop good teamwork.
Motivating individuals is a matter of:
o Understanding their needs – are they interested primarily in money,
security, status, advancement, achievement, or what?
o Remembering that money is not the only reward that most people
need and want. People can also be motivated by recognition, praise, and
the opportunity to make the best use of their skills and abilities and,
indeed, to enhance them.
o Bearing in mind the importance of expectations as an influence on

motivation. A reward, whether financial of non financial, will be much
more effective when people know what they can get if they work well
enough.
o Creating conditions where individuals can best satisfy their own

needs by directing their efforts towards achieving the success of their
team, department and, ultimately, the organization. This is why one of
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the arts of leadership is to get people to think for themselves about

what they can and should do and by getting them to understand and
agree to the standards and targets they are expected to achieve.
o Recognizing the fact that people can be motivated by the work itself
if it satisfies their need for responsibility and achievement. This can be
done by :
 Increasing individual responsibility, ‘ empowering’ them ;
 Giving them more scope to vary the methods, sequence and pace of
work;
 Giving people a complete natural unit of work, thus reducing
specialization;
 Giving people the control information to monitor their own
performance.
The process of performance appraisal is essentially a means for

managers to develop and improve their leadership skills in each of the
areas described above.
1.3 OBJECTIVES OF PERFORMANCE APPRAISAL:
Performance appraisal is potentially useful for managers in many ways.

At base however there are two fundamental reasons for developing such
systems.
• Assessing past, which outlines the evaluative aspect of
performance appraisal.
• Improving future performance, which highlights the development
aspect of performance appraisal.
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1.3.1 OTHER OBJECTIVES ARE AS FOLLOWS:

a) Promotion, separation, and transfer decisions.
b) Feedback to the employee regarding how the organization
viewed the employee’s performance.
c) Evaluation of relative contribution made by individuals and
entire departments in achieving higher level organization goals.
d) Criteria for evaluating the effectiveness of selection and
placement decisions, including the relevance of the information
used in the decisions within the organization.
e) Reward decisions, including merit increases, promotions
and other rewards.
f) Ascertaining and diagnosing training and development
decisions.
g) Criteria for evaluating the success of training and
development decisions.
h) Information upon which work scheduling plans, budgeting,
and human resources planning can be used.
i) Provided employees the opportunity to formally indicate
the direction and level of the employee’s ambition.
j) Show organizational interest in employee development,
which was cited to help the enterprise retain ambitious, capable
employees instead of losing the employees to competitors.
k) Provided a structure for communications between
employees and management to help clarify expectations of the
employee by management and the employee.
l) Provide satisfaction and encouragement to the employee
who has been trying to perform well.
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1.3.2 PURPOSE:
The purpose can be highlighted by way of the following chart:
General application Specific purpose
Development Uses:  Identification of individual needs.
 Performance feedback.
 Determining transfers.
 Identification of individual strengths and
developmental needs.
Administrative uses:  Salary.
 Promotion.
 Retention of individual performance.
 Recognition of individual performance.
 Lay-offs.
 Identification of poor performers.
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Organizational maintenance
 HR planning.
/ objectives
 Determining organizational training needs.
 Evaluation of organizational goal achievement.
 Information for goal identification.
 Evaluation of HR systems.
 Reinforcement of organizational development needs.
1.4 BENEFITS OF PERFORMANCE APPRAISAL:
The benefits of performance appraisal are two fold. The employees develop
themselves while the organization gets the benefit of improved workforce.
A few benefits are stated below:
1.4.1 A. Benefits to the organization :
• Facilitates the achievement of organization goals and

strategies.
• Contributes to improved staff morale.
• Facilitates continuous performance improvement, organization

development and culture change.
• Assists in establishing a performance culture – of quality,

efficiency and achievement.
• Provides a formal means of discussing competency gaps and

how to address these – leading to more competent work force.
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• Helps build a climate of openness and trust.
• Adds to a participative work culture.
• Forms part of the legal process in addressing persistent poor

performance.
• Provides the basis for fair remuneration based on actual

performance, so employees can see and experience a clear link between
their performance and the rewards they receive.
• Also provides systematic judgments to back up transfers,

demotions or terminations, in extreme cases.
1.4.2 B. BENEFITS TO EMPLOYEES:
• An opportunity to get formal feedback from line managers on

how their performance is viewed – so that they can learn what they do
well and what needs to improve.
• Ensures clarity regarding work expectations and standards,

reducing anxiety / stress and conflict with line managers.
• An opportunity to discuss their job competencies (or lack

thereof) – leading to targeted training and development – helping them
to realize their full potential.
• Provides a forum to share new idea and to air views.
• Can be used as a base for coaching and counseling the

individual by the superior.
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CHAPTER 2
 APPRAISAL AND MANAGEMENT STYLE
 APPRAISAL AND COMMUNICATION
 APPRAISAL AND MOTIVATION
 APPRAISAL AND REWARD
 APPRAISAL AND PERFORMANCE STANDARDS
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 APPRAISAL AND TRAINING AND DEVELOPMENT
 APPRAISAL AND PLANNING
 APPRAISAL AND RECORD KEEPING
 APPRAISAL AND STAFF RETENTION
ROLE OF PERFORMANCE APPRAISAL IN AN ORGANIZATION:
A major step in devising a performance appraisal scheme is deciding

exactly why it is necessary to have one. Organizations need to consider
their objectives long before they design their schemes, if they are to
ensure progress towards meeting their objectives. To establish the
relevance of objectives in performance appraisal they have to be
considered in the light of organization objectives. Is there a statement
of plans for next three to five years? Are the objectives of the appraisal
scheme consistent with those plans? Objectives must also be considered
in the much wider context of people management and how they relate to
organizational priorities in maximizing human resources.
2.1 Appraisal and Management style:

The practice of monitoring and improving performance is all part of
being a good manager. Consulting on problems, maintaining standards,
assisting in reaching targets, and improving effectiveness are some of
the ways in which results are obtained through people. Introducing
performance appraisal into an organization whose management is
generally autocratic would be something of an anomaly. It would also
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be doomed to failure, since it would be greeted with a fair degree of

suspicion. Commitment to it would be lacking. Introduction or revision
of an appraisal scheme can be natural extension to the increasing
professionalism in a participative style of management.
2.2 Appraisal and Communication:

Since appraisal is a particularly refined form of corporate
communication, using it to improve communications is a relevant
objective. This applies both to communication on one to one basis
between managers and staff, and to management communication in
general. Here is an opportunity to ensure that all issues relating to
performance are clarified and to exchange information in order to
improve operational effectiveness. Seen as a way of strengthening good
communications, performance appraisal has a rightful place in an
organization’s communications policy. What must be avoided, however,
is introducing appraisal because communications are bad. An appraisal
scheme will not create better corporate communication on its own. It
can only serve as a part of a system where regular updates, team
briefings, meetings, and consultation are the norm. If communication is
bad, what is going to happen to all the feedback obtained from
appraisees? There is a strong likelihood that it will fade away under the
pressures of day-to-day operational needs.
2.3 Appraisal and Motivation:

It is now understood that achievement, recognition involvement, job
satisfaction and development are more likely to motivate than anything
else, given that they are provided in satisfactory working conditions
and that rewards are appropriate.
Appraisal links into the motivational aspect of the manager’s job in that
it can be aimed at giving recognition, helping people achieve, involving
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them, assisting in creating job satisfaction and providing a forum in

which to discuss development.
How individuals are managed has a direct relevance to how motivated
they are likely to be. There is no doubt that appraisal well handled,
strengthens relationship because of the opportunities it creates for good
quality communication.
Appraisal also offers a good opportunity for the managers to keep in
touch with their employee’s changing capabilities and aspirations.
Performance appraisal also compliments the idea that with agreed levels
of attainment individuals will work willingly and reasonably
interdependently towards achieving goals.
2.4 Appraisal and Reward:
2.4.1 Money
There is something fundamentally right about allowing those who
achieve more and contribute more in an organization to reap a larger
proportion of the rewards it has to offer.
As a basis for distributing pay, a performance appraisal scheme can be
helpful particularly if it concentrates on quantifiable standards and
targets. It is certainly better than some alternatives, which may amount
to no more than a series of decisions about who “ deserves” what.
However, the disadvantages of linking reward to appraisal may
outweigh the advantages. The problem of relating pay and performance
is that, for it to be absolutely fair, everyone must be enabled
consistently. The abilities of employee’s immediate superiors, both as
manager and assessors, is rarely uniformly good across and
organization, similarly, the distribution of resources is often
inconsistent, resulting in difficulties which may mean that the potential
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for good performance is frustrated. Often performance is affected by

other matters beyond the control of managers or subordinates.
It may also happen, that if there is performance – related pay scheme,
employees may feel that too much of emphasize is on quantity rather
than quality and the standards have to be ceased to be important.
2.4.2 Promotion
The concept of discussing promotion potential and career planning has
been questioned from time to time. For certain employees the exercise
may have little point if such issues are not discussed. However, a prime
contender for an impending promotional opportunity is not necessarily
going to be completely honest about current problem area at an
appraisal interview.
Career planning is too important both to individuals and organizations.
To give it due emphasize, and to remove a possible obstacle to
appraisal processes, career planning may well be need to be the subject
of a separate exercise.
2.5 Appraisal and Performance Standards:

Discussing and agreeing standards of performance is an ongoing part of
manager’s job. As is continual assessment and considering how to
maximize performance potential. Appraisal is a formal extension of this
responsibility, and given that it is carried out with commitment and a
degree of skill by the managers, raising levels of efficiency in the
organization as a whole is a natural outcome.
2.6 Appraisal and Training and Development:

To analyze training and development needs is often a stated objective
of performance appraisal, and one that focuses on benefits to the
individual and the organization. The real benefit of appraisal in this
area is that it reaffirms that managers are responsible for the training
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and development of their own staff. An appraisal report form with the
appropriate reminders on it creates an added discipline to ensure that
managers are aware of this responsibility. Appraiser and appraisee
discussing previous training experiences, agreeing the best options and
formalizing what improvements are expected to result from learning, is
the most pertinent way to ensure that any training carried out actually
has some impact. Evaluation of training is also a part of appraisal
process, since any plans for training made during an appraisal must be
thoroughly followed up. Evaluation of training should be carried out as
a separate, specifically designed exercise, but the information obtained
at an appraisal will be an additional indicator as to how well training
resources are being used.
2.7 Appraisal and Planning:

Planning current and future staffing needs is a legitimate aim in
performance appraisal; although not always an easy one to reach
coherently, because of the many influences that can have negative or
positive impact on the planning system.
2.7.1 Manpower Planning

Performance appraisal can give a lot of data about who is in the right
job, who wants to change jobs and who should be considered for
development or promotions.
2.7.2 Job Contents

Feedback from the jobholders often gives a better insight into the
evolution, which takes place almost unnoticeably in certain in certain
jobs. Appraisal is an ideal situation in which to discuss and recognize
changes in job content that have not been formalized.
An individual may have stopped performing a key task of the job
description because they do not like it and could have coerced others
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into doing it for them. This does not alter the fact that they should be
doing it, and operational needs determine that they should still at least
carry out the function when necessary. The manager has to collate
feedback and review it in relation to departmental and organizational
needs. The main task is to follow through and either to make
appropriate changes or to explain why no changes can be made.
2.7.3 Evaluating Trends

Appraisals can be extremely helpful in highlighting certain trends. On
the basis that not all of the people can be wrong all of the time, some
issues may emerge which need attention at senior level.. Additionally,
individual managers can learn a great deal about the impact of their
management style and practices, and how they might make changes for
the better.
2.8 Appraisal and Record Keeping:

Whilst appraisal should never be a “paper-based” procedure, a record of
it is essential for some sensible reasons. An action plan would need to
be written down, and it is always practical to have a record of
employee’s performance standards, aspirations, and potential for
planning purposes and possibly for the allocation of the salary awards.
2.9 Appraisal and Staff Retention:

Many vacancies are unavoidable through retirement, illness, etc.
However, many can be avoided if managers address themselves to some
of the other issues which cause staff to leave for alternative
employment – frustration, boredom, lack of opportunity, lack of
recognition, etc. Both continuous and formal appraisal must be seen as
a way of identifying problems before they reach the point of no return
and another employee ends up as a statistic on the labour turnover
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analysis. With the help of performance appraisal the retention can be

done successfully.
CHAPTER 3
 SKILLS REQUIRED TO CARRY OUT PERFORMANCE

APPRAISAL PROCESS
 PERFORMANCE GUIDELINES FOR MANAGERS
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SKILLS REQUIRED TO CARRY OUT PERFORMANCE

APPRAISAL PROCESS:
The skills required by managers to carry out a performance appraisal

process are often underestimated. They need to know how to agree
clear, measurable and achievable objectives with their staff. They need
to know to define and assess competence requirements. They have to
provide the feedback and know, not only how to commend staff on their
achievements in appraisal discussion meeting, but also how to coach
them and help them to recognize where their performance has been
substandard and needs to be improved.
The manager is faced with a new and more challenging situation:
feedback, coaching, and counseling skills and the ability to handle and
encourage upward appraisal all come to the fore.
However, performance appraisal does not require managers to act out of
character. In fact this would be most undesirable. It is no use managers
being sweetly reasonable and consultative during the appraisal
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discussion and then reverting to their autocratic, directive type of

behaviour for the rest of the year. This sort of behavior would only
confirm the suspicions of some people that appraisal is meaningless
affair. What such managers can be persuaded to do, however, is to learn
that the skills of performance appraisal that can help them to get better
results from their staff and that some modification of their behavior
during the course of their day – to – day work would have beneficial
results in the shape of improved performance.
Interpersonal or interactive skills are those used by people to build and
maintain relationships with one another in order to achieve a purpose
(which may or may not be articulated). The social interaction, which
takes place when using interpersonal skills involves both verbal
behavior ( asking or replying to questions, making statements, etc.), or
the non – verbal communication ( facing people, looking at them,
reacting physically to what they say or do etc. by nodding, smiling
etc.).
Interpersonal skills are exercised when an appraiser, initiates action to
achieve an aim which is dependent on the reaction and the agreement of
the appraissee. The appraisee may have their own objectives and will
certainly not be inert or passive. Appraisees will produce behavior and
reactions which have to be taken into account by appraisers who will
order their behavior in a way it is believed will contribute to achieving
their objectives. Appraisers have to ensure that appraisees will interact
with them productively and this will be affected by how appraisers see
appraisees and vice versa.
The attitude of appraiser will depend partly upon their knowledge of the
appraisees but may be affected by deep routed feelings about people in
general or the appraissees in particular.
3.1 PERFORMANCE GUIDELINES FOR MANAGERS:

3.1.1 Professional and technical knowledge:
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 Has expertise in the productive marketing of the business unit’s

services.
 Has expert knowledge of business unit’s services and sufficient
familiarity with other business unit’s services to enable customer needs
to be met.
 Has expert knowledge of basic operations of the total business
unit and the appropriate management information.
3.1.2 Organizational and Business Knowledge:

 Understands and applies organizational knowledge to the
business unit.
 Knows whom to contact to gain additional knowledge.
 Appropriately applies knowledge of the team to enhance the
operations of the business unit.
3.1.3 Interpersonal and Communications:

 Responds constructively when dealing with customers and
colleagues.
 Can establish rapport easily with a range of different people.
 Helps people in groups and teams to ‘get on together’.
 Can say “No” when necessary and set standards/ limits for others.
 Makes it easy for others to be open and honest.
 Presents ideas and information clearly in speech and writing.
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3.1.4 Influencing Skills:

 Maintains a good relation with customers even when their needs
can’t all be met.
 Actively involves others in decision- making and wins co-
operation.
 Uses contacts appropriately to obtain information and help.
 It is assertive for self and /or on team’s behalf without damaging
relationships.
3.1.5 Critical Thinking:

 Readily spots trends and patterns in job–related quantitative and
qualitative data.
 Tests the quality of available information and draws logical
conclusions from it.
 Can analyze varied major problems and at the same time identify
appropriate actions.
3.1.6 Self – Managing and Learning:

 Is objective about own strengths and weaknesses.
 Prepared to back own judgment publicly.
 Concentrates and maintains focus, even when constantly
interrupted.
 Makes good use of opportunities to learn.
 Recognizes and deals effectively with personal stress.
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3.1.7 Achievement and Action:

 Is clear about what ‘success’ means for the business; successful
in overcoming obstacles.
 Makes decisions without ‘passing the buck’ and sets personal
performance standards, too.
 Take early actions to deal with problems even if it is difficult or
unpopular.
 Makes best use of resources to achieve objectives.
3.1.8 Initiative and Innovation:

 Identifies option for improvement and acts on them – or
motivates others to do so.
 Challenges accepted ways of doing things when this means
breaking with ‘time honoured’ traditions.
 Activity encourages the team to come up with new ideas and
approaches.
 Experiments and learns from mistakes.
3.1.9 Strategic perspective :

 Understands key organizational aims, values and strategies.
 Anticipates how trends and events in different areas of the
business and environment will affect them.
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 Actively encourages and supports people when they offer

different perspectives and opinions.
3.1.10 Capacity for Change:

 Gradually modifies approach or strategy as the situation changes.
 Can accept and work with new approaches, even if not totally in
agreement with them. Keeps focused in the phase of uncertainty. Helps
the team to accept and adjust to changed approaches.
 Matches opinions in response to contrary evidence. Can modify
on style when appropriate.
CHAPTER 4
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 THE APPRAISAL PROCESS

 SETTING THE OBJECTIVES OF PERFORMANCE
APPRAISAL
 ESTABLISHING JOB EXPECTATIONS
 DESIGNING THE APPRAISAL PROGRAMME
 PERFORMANCE INTERVIEW
THE APPRAISAL PROCESS:

4.1 I. Setting the objectives of performance appraisal:
The purpose for evaluating the performance of the employee
can be for:
 Training (finding the deficiency in the performance and
imparting training accordingly).
 Promotions (finding the most suitable employee from the
cluster so that he can face the new challenges posed by the promotions).
 Transfers (finding out the employees potential, interests
and accordingly transferring him to the most suitable job in order to get
the best out of him and retain him in the organization).
 Giving pay increases (finding out the employee who is
efficient and effective in performing his tasks at work he does).
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Thus depending on the necessity of appraisal the performance

objectives will be designed. The objectives should enable the
employees to know exactly the standards of performance they have to
maintain. It helps the organization to set standard of performance
against which the actual performance of the employees would be rated
and thus the organizations goal would be met in an efficient and
effective manner.
4.2 II. Establishing job expectations:

After formulating the performance objectives a discussion is
held with the employees who’s performance is to be rated. The
supervisor makes the job expectations, duties and what is expected out
of him clear to the employees.
4.3 III. Designing the appraisal programme :

In order to design the appraisal system various aspects are to be
considered in order to satisfy the purpose of the appraisal system. This
would include;
i. The person who’s performance would be assessed,
ii. The person who will assess the performance,
iii. The possible problems that would be faced,
iv. The possible solutions that would solve the problem.
v. The methods to be used to appraise the performance.
vi. The period when the performance is to be appraised.
The decision regarding whether the appraisal would be done in a formal

way, i.e. once in a year or twice or it can be done on informal basis i.e.
whenever there is a need to appraise the performance depending on the
needs of the organization.
29
For example, for promotion or transfer or when there is an emergency

situation. It is however better to have a formal appraisal system in
order to know whether the performance standards are met, in addition
informal appraisal system would help to go to the deeper aspects like,
when the employee is not able to perform to the standards of
completing the job on time, then he can be asked for the reason which
can be personal or organizational, this can help to identify the cause of
the deficiency and coming up with appropriated solution in order to
make the employee complete his job on time.
4.3.1 Ratees and Raters:

A ratee may be defined as an individual, work group, division, or an
organization whose performances need to be rated. Raters can be
immediate supervisors, specialists from the HR department,
subordinates, peers, committees, clients, self-appraisal, or a
combination of several.
The choice of raters is done according to the category of the ratee
whose performance is evaluated. For instance:
 Immediate supervisors are fit to appraise the performance
of their subordinates as they might be more familiar with his or her
performance.
 Peers are better position to evaluate facts such as
contribution to work groups projects, interpersonal effectiveness,
communication skill, reliability and initiative of job performance.
30
 Clients that are within the organization who have direct

contact with the ratee or the external clients can also be used for rating
the employee performance.
 Rating Committees comprises of immediate supervisors
and other supervisors who are in contact with the ratee are adopted
where employee performs variety of tasks in different environment.
 In self-appraisal employee himself or herself evaluates his
or her own performance. This may be best suited where self-
development is the main purpose of evaluation.
4.3.2 Criteria for Rating Performance:

It includes the basis or criteria for performance appraisals. It should be
determined on the basis of the employees perform. The criteria should
be such that it enables the assessment of the jobholder’s performance in
a fair and accurate manner. Depending upon the job the employee does,
the standard for the criteria would be determined. For example, a shop
floor worker should be more proficient in technical skills hence his
performance appraisal should emphasize more on technical skills. While
for a managerial position the emphasis should be more on social skills.
The current approach in setting the criteria is to make them SMART:

• Specific
• Measurable
• Achievable
• Relevant
• Timed
31
Keeping the smart approach in mind performance can be assessed

depending on the following criteria;
 Quality: This answers the question, how well? When an

employee is given a task, a certain level of quality is expected. If the
employee exceeds the expectations then the quality of work performed
is considered to be excellent and if it is below the expectation, it is
considered poor in quality.
 Quantity: This answers the question, How much? For example,

measuring the performance based on the number of units produced,
volume of sales achieved or the number of activity cycles completed.
 Timeliness: This answers the question, By what time? For every

activity, some time is required to complete it as per the standards. The
less the time taken by the employee to perform the activity, maintaining
the standard quality of work, the higher he is rated for timeliness.
 Cost effectiveness: This answers the question, At what cost? It

refers to optimum utilization of organizational resources, be it human,
financial, technological or material. That is, the organization’s
resources are used in such a way that the returns are maximum.
 Need for supervision: This answers the question, What level of

self sufficiency? This means how well an employee can carry out his
job without seeking his superior’s help. How self sufficient and
independent the employee is, in carrying out any task given to him.
 Interpersonal impact: This answers the question, How social

he is? That is how well the employee co-ordinates and co-operates with
32
his superiors, colleagues and customers and maintains a good rapport

with all and fosters a feeling of goodwill.
 Skills: This answers the question, How efficient he is? That is

does he poses personal, social, technical skills. Personal skills include
such things as to listen, to question, to debate, to experiment etc. Social
skills include such skills as the ability to encourage, to motivate other,
to meet people, to support people, to train others and so on. Technical
skills include area which covers all the aspects of work that require
people to do something specific. For example, wide technical
knowledge of company’s product with specialist knowledge of some.
 Knowledge: This answers the question, How much a person

knows and how well can he retain the information? That is how a
person keeps himself/ herself aware of what is happening around and to
use his /her knowledge whenever needed.
 Experience: This answers the question, How experienced a

person is? That is whether a person has done the same thing over and
over again or they have done many different things.
The first four- quality, quantity, time and cost are objective and the
next two- supervision and social relationship are subjective. Hence the
33
appraisal criteria are either person – oriented (subjective) or result’s

oriented (objective).
4.4 IV. Performance Interview:
The performance interview is the formal face-to face meeting

between the employee and the appraiser. In such interviews the
information, which is obtained from the appraisal form, is discussed.
This discussion is important as the employees receive feedback about
where they stand in the eyes of supervisors. After this important
decision regarding salary, promotion and training, etc are made.
Feedback is necessary in order to bring improvement in the performance
especially when performance is not as expected. Performance interview
has following goals:
 To change behavior of employees whose performance does not

meet organizational requirements or their own personal goals.
 To maintain the behavior of employees who perform in an
acceptable manner.
 To recognize superior performance behavior so that they will be
continued.
 To provide a rationale for salary reviews.
 To improve communication between superior and subordinates.
34
Raters offer feedback to ratees through several methods. The most

popular methods include tell and sell, tell and listen, problem solving
and mixed.
 In tell and sell (direct interview ) the manager tells the

subordinate how well he is doing and persuades him to accept what has
been decided for him in terms of specific goals for improvement.
 In the tell and listen interview the manager tells the subordinate
how he is doing but then sits back and listens to the individuals point of
view both about the appraisal and about any follow-up action required.
This provides the subordinates with chances to participate and establish
a conversation with his superior.
 In problem solving (participative interview) an active and open

conversation is established between the superior and the subordinates.
Here the superior puts aside his role as a judge, rather he openly
discusses with his subordinate. They mutually reflect on the progress
and further action required. Solution to problems are presented,
discussed and sort.
 Mixed interview is combination of tell and sell and problem

solving interviews. Here the superior shares the problems and solution
with the subordinates keeping their side of story in mind.
35
CHAPTER 5
 METHODS OF APPRAISALS
 PAST-ORIENTED APPRAISALS METHODS
 FUTURE –ORIENTED APPRAISALS METHODS
36
METHODS OF APPRAISALS
METHODS OF APPRAISALS
Past Oriented Future Oriented
 Rating Scales MBO
 Checklists
360◦Appraisal
 ForcedChoiceMethod Psychological
appraisal
 Critical Incident Method Assessment Centers
 Behaviorally Anchored Method
 Field Review Method
 Performance Test and Observations
 Annual Confidential Reports
37
 Essay Method
 Cost Accounting Approach
 Comparative Evaluation Approach

5.1 PAST – ORIENTED METHODS:
5.1.1 Rating scales:
This is the simplest and most popular technique for appraising
employee performance. The typical rating-scale system consists of
several numerical scales, each representing a job – related performance
criteria such as dependability, initiative, output, attendance, attitude,
co-operation, etc.
Each scale ranges from excel linked to salary increase, whereby so
many points equal a rise often to poor. The appraiser checks the
appropriate performance level on each criterion, and then computes the
employee’s total numerical score. The number of points scored may be
linked to salary increase, whereby so many points equal a rise of
percentage.
Excellent Good Acceptable Fair Poor

5 4 3 2 1
Dependability - - - - -
Initiative - - - - -
Overall output - - - - -
Attendance - - - - -
Attitude - - - - -
Co-operation - - - - -
- - - - -
- - - - -
38
Quality of work - - - - -
Total - - - - -
Total score - - - - -
Rating scales offer the advantages of adaptability, relatively easy

use and low cost. Nearly every type of job can be evaluated with the
rating scale, the only requirement being that the job – performance
criteria should be changed. This way, a large number of employees
can be evaluated in a short time, and the rater does not need any
training to use the scale. The disadvantages of this method are
several. The rater’s biases are likely to influence evaluation and the
baises are pronounced in subjective criteria such as co-operation,
attitude and initiative. Moreover, numerical scoring gives an
illusion of precision that is really unfounded.
Instruction : For the following performances factors please indicate on the rating
Scale your evaluation of the employee named below.
Employee’s Name: Department :
Rater’s Name: Date:
5.1.2 Checklist:
In this method, a checklist of statements on the traits of the
employee and his or her job is prepared in two columns viz. a ‘Yes’
column and a ‘No’ column. All that the rater (immediate superior)
should do is tick the ‘Yes’ if the answer to the statement is positive
and in the column ‘No’ if the answer is negative. After ticking off
against each item, the rater forwards the list to the HR department
where the actual assessment of the employee takes place and the
actual evaluation is done by the HR department. The HR department
assigns certain points to each ‘Yes’ ticked. Depending on the
number of ‘Yes’ the total score is arrived at. When points are
allotted to the checklist it becomes weighted checklist. The
39
advantages of this method are economy, ease of administration,

limited training of rater, and the standardization. The disadvantages
include, susceptibility to rater’s baises, use of personality criteria
instead of performance criteria, misinterpretation of checklist items,
and the use of improper weights by the HR department, it also does
not allow the rater to give up relative ratings.
Yes No
1. Is the employee really interested in the job? - -
2. Does he/ she possess adequate knowledge about the - -
job?
3. Is his/her attendance satisfactory? - -
4. Does he/she maintain the equipment in a good - -
condition?
5. Does he/she co-operate with co-workers? - -
6. Does he/she observe safety precautions? - -
7. Does he/she complete what he/she commences? - -
8. Does he/she evade the responsibility? - -
5.1.3 Forced Choice Method:

In this the rater is given a series of statements about an employee.
These statements are arranged in blocks of two or more, and the
rater indicates which statement is most or least descriptive of the
employee. Typical statements are:
1) Learns fast………………..Works hard.
2) Work is reliable…………..Performance is a good example for.
3) Absents often……………..Others usually tardy.
The rater is simply expected to select statements, which are
readymade. The advantage of this method is the absence of personal
bias in rating. The disadvantage is that the statements may not be
properly framed- they may not be precisely descriptive of the
ratee’s traits.
40
5.1.4 Forced Distribution Method

One of the errors in rating is leniency-clustering a large number of
employees around a high point on rating scale. The forced
distribution method seeks to overcome the problem by compelling
the rater to distribute the ratees on all points on the rating scale.
The method operates under assumption that the employee’s
performance level conforms to a normal statistical distribution.
Generally, it is assumed that employee performance level conforms
to a bell shaped curve.
The major weakness of the forced distribution method lies in the
assumption that employee performance level always conform to a
normal (or some other) distribution. In organizations that have done
good job of selecting and retaining only the good performers, the
use of forced distribution approach would be unrealistic as well as
possibly destructive to the employee morale.
5.1.5 Critical Incidents Method:

The critical incidents method of employee assessment approach
focuses on certain critical behaviors of an employee that make all
the difference between effective and non-effective performance of a
job. Such incidents are recorded by the superiors as and when they
occur.
One of the advantages of the critical incidents method is that the
evaluation is based on actual job-behavior. Giving job-related
feedback to the employee is also easy. However, the following
drawbacks are there:
41
 Negative incidents are generally more noticeable than

the positive ones.
 The recording of incidents is a chore to the supervisor
and may be put off and easily forgotten.
 Overly close supervision may result.
5.1.6 Behaviorally Anchored Scale:
In this approach, broad categories of practice are identified, ideally
through collaborations between supervisors and staff. Specific job
behaviors are then linked to the categories. Measures of staff
member behavior are rated on a scale in relation to specific
behavior items, such as “understands department functions”. Job
dimensions usually yield similar broad categories, such as planning,
setting priorities, and responsiveness to supervision. Categories
such as these may be useful in framing evaluation criteria in this
approach to appraisal.
Another means of approaching behavior- based appraisal is the
behavioral frequency scale. Here, desired behaviors are described
and the staff member is evaluated on how often those behaviors
occur.
5.1.7 Field Review Method:

This is an appraisal by someone outside the assessee’s own
department, usually by someone from the corporate office or the HR
department. The outsider reviews employee records and holds
interviews with the ratee and his/ her superior. The method is used
primarily for making promotional decisions at the managerial level.
Field reviews are also useful when comparable information is
needed from employees in different units or locations.
The disadvantages of this method are:
42
1. An outsider is usually not familiar with the conditions in an

employee’s work environment that may affect the employee’s
ability or motivation to perform.
2. An ‘outsider’ review does not have the opportunity to observe
employee behavior of performance over a period of time and
in a variety of situation but only in an artificially structured
interview situation which extends over a very short period of
time.
5.1.8 Performance Tests and Observations:

With a limited number of jobs, employee assessment may be based
upon a test of knowledge or skills. The test must be reliable and
validated to be useful. Even then, performance tests are apt to
measure potential more than actual performance. In order to test to
be job related, observations should be made under circumstances
likely to be encountered. Practically it may suffer from the costs of
test development or cost of administration.
5.1.9 Essay Method:

In the essay method, the rater must describe the employee within a
number of broad categories, such as:
i. The rater’s overall impression of the employee’s
performance.
ii. The promotability of the employee.
iii. The jobs that employee is now able or qualified to
perform.
iv. The strengths and weakness of the employee.
v. The training and assistance required by the employee.
This method is useful in filing the information gaps about the

employees that often occur in the better-structured checklist
43
method. However, the major drawback can be that many raters do

not have good writing skills. They become confused about what to
say, how much they should state and the depth of narration. Another
problem with this method is that the ratees may be rated on the
quality of the appraisal that they give. The quality standard for the
appraisal may be influenced by appearance rather than content.
Thus, a ‘high quality’ appraisal may provide little useful
information about the performance of the ratee.
5.1.10 Cost Accounting Method:

This method evaluates performance from the monetary returns the
employee yields to his/ her organization. A relationship is
established between the cost included in keeping the employee and
the benefit the organization derives from him or her. Performance of
the employee is then evaluated based on the established relationship
between the cost and the benefit.
5.1.11 Comparative Evaluation Approaches:

There are two methods that are used to compare one worker’s
performance to that of his or her co-worker.
5.1.11.1 Ranking Method:

In this, the superior ranks his or her subordinates in the order of
their merit, starting from the best to the worst. All that the HR
department knows is that A is better than B. The ‘how’ and ‘why’
are not questioned. No attempt is made to fractionalize what is
being appraised into component elements. To avoid the biases, two
or more people can do rankings and then average can be taken. Its
advantages include ease of administration and explanation.
5.1.11.2 Paired-Comparison Method:
44
Under this method, the appraiser compares each employee with

every other employee, one at a time. For example, there are five
employees named A,B,C,D and E. The performance of A is first
compared to B and a decision is made about whose performance is
better. Then A is compared with C,D,E in that order. The same
procedure is repeated for other employees. The number of
comparisons may be calculated with the help of a formula: N(N-
1)/2, where N stands for the number of employees to be compared.
If there are 10 employees, the number of comparisons will be 10(10-
1)/2=45. After the completion of the comparison, results can be
tabulated and rank is created from the number of times each person
is considered to be superior.
5.2 Future Oriented Appraisals Methods:

5.2.1 Management By Objectives (MBO):
MBO emphasizes participation by all organization members. The
following core elements in MBO:
 Formation of trusting and open communication throughout the
organization
 Mutual problem solving and negotiations in the establishment of
objectives
 Creation of win-win relationships
 Organizational rewards and punishments based on job-related
performance and achievement.
 Minimal uses of political games, forces and fear.
 Development of a positive, proactive, and challenging
organizational climate.
Following are the 6 steps in the MBO process:

i. Formulate long range goals and strategic plans
ii. Develop overall organizational objectives
45
iii. Established derivative objectives for major operating units

iv. Set realistic and challenging objectives and standards of
performance for members of the organization.
v. Formulate action plans for achieving the stated objectives
vi. Implement the action plans and take corrective action when
required to ensure the attainment of objectives.
MBO evaluation report for a call center person:

Objectives set Period Accomplishments variance
objectives
Number of calls 100 104 104
Number of new customers 20 18 90
contacted
Number of deals cracked 30 30 100
Customer complaints 34 11 66.66
Number of reports in 12 10 80
home office
Number of sales 4 2 50
correspondence courses
successfully completed
Deals failed 2 0 0
5.2.2 Psychological Appraisals:

Large organizations employ full-time industrial psychologist. When
psychologists are used for evaluations they assess an individual’s
future potential and not past performance. The appraisal normally
consists of in-depth interviews, psychological tests, discussions
with supervisors and a review of other evaluations. The
psychologist then writes an evaluation of the employee’s
intellectual, emotional, motivational and other related
characteristics that suggest individual potential and may predict
future performance. From these evaluations, placement and
development decisions may be made to shape the person’s career.
46
5.2.3 Assessment Centers:

An assessment center is a central location where managers may
come together to have their participation in job related exercises
evaluated by trained observers. The principle idea is to evaluate
managers over a period of time, say by one to three days, by
observing and evaluating their behavior across a series of selected
exercises or work samples. Assesses are requested to participate in
work groups (without leader), role-playing and other similar
activities, which require the same attributes for successful
performance, as in the actual job. After recording their observation
of ratee behaviors, the raters meet to discuss these observations.
The decision regarding the performance of each assessee is based
upon this discussion of observations.
5.2.4 360 Degree Feedback:

Where multiple raters are involved in evaluating performance, the
technique is called 360 o appraisal. The 360 o technique is understood
as systematic collection of performance data on an individual or
group, derived from a number of stake holders- stakeholders being
the immediate supervisors, team member, customers, peers, and
self. In fact, anyone who has useful information on ‘how an
employee does the job’ may be one of the appraisers. It enables an
employee to compare his or her perceptions about self with the
perceptions of others. However, receiving feedback on performance
from multiple sources can be intimidating. It may also take a long
time on selecting the rater, designing questionnaire, and analyzing
the data.
47
5.2.5 Performance Interview:

Performance interview is another step in the appraisal process. The
raters should discuss and review the performance with the ratees, so
that they will receive the feedback about where they stand in the
eyes of superiors. Feedback is necessary to effect.
48
CHAPTER 6
 PERFORMANCE APPRAISAL PROCESS

 PREPARE
 INFORM
 VENUE
 LAYOUT
 INTRODUCTION
 REVIEW AND MEASURE
 AGREE AN ACTION PLAN
 AGREE SPECIFIC OBJECTIVES
 AGREE NECESSARY SUPPORT
 CLOSE POSITIVELY
 RECORD MAIN POINTS, AGREED
ACTIONS AND FOLLOW-UP
49
PERFORMANCE APPRAISALS PROCESS
6.1 Prepare
Prepare all materials, notes agreed tasks and records of
performance, achievements, incidents, reports etc – anything
pertaining to performance and achievements- obviously include
the previous performance appraisal documents and current job
description. A good appraisal form will provide a good natural
order for proceedings, so use one. Whatever you use, ensure you
have the necessary approval from your organization, and
understand how it works. Organize your paperwork to reflect the
order of the appraisal and write down the sequence of items to be
covered. If the appraisal form includes a self- assessment section
and/or feedback section (good ones do) ensure this is passed to
the appraisee suitably in advance of the appraisal with relevant
guidance for completion. A sample performance appraisal
template is available, which you can use as it is or adapt to
create your own form.
6.2 Inform
Inform the appraisee-ensure the appraisee is informed of a
suitable time and place (change it if necessary), and clarify
purpose and type of appraisal –give the appraisee the chance to
assemble data and relevant performance and achievement records
and materials. If the appraisal form does not imply a natural
order for the discussion then provide an agenda of items to be
covered.
50
6.3 Venue
Ensure a suitable venue is planned and available – private and
free from interruptions.
6.4 Layout
Room layout and seating are important elements to prepare also
– don’t simply accept whatever layout happens to exist in a
borrowed or hired room- layout has a huge influence on
atmosphere and mood- irrespective of content, the atmosphere
and mood must be relaxed and informal- remove barriers- don’t
sit in the boss’s chair with the other person positioned humbly
on the other side of the desk, you must create a relaxed situation,
preferably at a meeting table or in easy chairs-sit at an angle to
each other, 90 degree ideally- avoid face to face, its
confrontational.
6.5 Introduction
Relax the appraisee – open with a positive statement, smile, be
warm and friendly – the appraisee may well be terrified; it’s
your responsibility to create a calm and non-threatening
atmosphere. Set the scene-simply explain what will happen –
encourage a discussion and as much input as possible from the
appraisee- tell them it’s their meeting not yours. Confirm the
timings, especially finishing time. If helpful and appropriate
begin with some general discussion about how things have been
going, but avoid getting into specifics, which are covered next
(and you can say so). Ask if there are any additional points to
51
cover and note them down so as to include them when

appropriate.
6.6 Review and measure

Review the activities, tasks, objectives and achievements one by
one, keeping to distinct separate items one by one – avoid going
off on tangents or vague unspecific views. If you have done your
preparation correctly you will have and order to follow. If
something off subject comes up then note it down and say you
will return to it later (and ensure you do). Concentrate on hard
facts and figures, solid evidence – avoid conjecture, anecdotal or
non-specific opinions, especially about the appraisee. Being
objective is one of the greatest challenges for the appraiser – as
with interviewing, resist judging the appraisee in your own
image, according to your own style and approach-facts and
figures are acid test and provide a good neutral basis for the
discussion, free of bias and personal views. For each item agree
a measure of competence or achievement as relevant, and
according to whatever measure or scoring system is built into the
appraisal system. This might be simply a yes or no, or it might
be a percentage or a mark out of ten, or an A, B, C. Reliable
review and measurement requires reliable data-if you don’t have
the reliable data you can’t review and you might as well re-
arrange the appraisal meeting. If a point of dispute arises, you
must get the facts straightened out before making an important
decision or judgment, and if necessary defer to a later date.
6.7 Agree an action plan

An overall plan should be agreed with the appraisee, which
should take account of the job responsibilities, the appraisee’s
52
career aspirations, the departmental and whole organization’s

priorities, and the reviewed strengths and weakness. The plan
can be staged if necessary with short, medium and long-term
aspects, but importantly it must be agreed and realistic.
6.8 Agree specific objectives

These are the specific actions and targets that together form the
action plan. As with any delegated task or agreed objective these
must adhere to the SMARTER rules-specific, measurable,
agreed, realistic, time-bound, enjoyable, recorded. If not, don’t
bother. The objectives can be anything that will benefit the
individual, and that the person is happy to commit to. When
helping people to develop, you are not restricted to job-related
objectives, although typically most objectives will be.
6.9 Agree necessary support

This is the support required for the appraisee to achieve the
objectives, and can include training of various sorts (external
courses and seminars, internal courses coaching, mentoring ,
secondment, shadowing, distance-learning, reading, watching
videos, attending meeting and workshops, workbooks, manuals
and guides; anything relevant and helpful that will help the
person develop towards the standard and agreed task. Be careful
to avoid committing to training expenditure before suitable
approval, permission or availability has been confirmed-if
necessary discuss likely training requirements with the relevant
authority before the appraisal to check. Raising false hopes is
not helpful to the process.
6.10 Close positively
53
Thank the appraisee for their contribution to the meeting and

their effort through the year, and commit to helping in any way
you can.
6.11 Record main points, agreed actions and follow-up

Swiftly follow-up the meeting with all necessary copies and
confirmations, and ensure documents are filed and copied to
relevant departments, (HR, and your own line manager
typically).
54
CHAPTER 7
 THE JOINT APPROACH

 OPENING AND CREATING A RAPPORT
 QUESTIONING
 LISTENING SKILLS
 KEEPING CONTROL
 GETTING PEOPLE TO OPEN UP
 OVER COMPLIANCE
 DISAGREEMENT, CONFRONTATION, ARGUING
 AGREEING ACTION PLAN
55
THE PERFORMANCE APPRAISAL INTERVIEW:
7.1 The Joint Approach:

The appraisal interview should adopt the “joint approach”. The joint
approach is based on the idea that confrontation about shortcomings
in performance and the imposition of solutions to them are not
going to get the commitment required from employees to make
improvements. Managers have to see themselves not as “judge and
jury” but as “enabler” in the appraisal situation. The joint approach
employs a discussion technique, which is designed to avoid
patronizing appraisee or confronting them about their strength and
weakness. It is about developing awareness and gaining agreement
to plans for development or improvement.
7.2 Opening and creating rapport:

The opening phases of an appraisal interview are very important in
determining the atmosphere, which will prevail throughout the
meeting. Making people comfortable is an important opening skill.
This will enable them to enter into an honest and productive
discussion.
The comfortable and preferably familiar room layout is important.
An initial reminder from the manager about the purpose of
performance appraisal and the appraisal inter is important. The first
stages of the appraisal interview should be thought out carefully, so
56
as to reduce any apprehension, suspicion or nervousness perhaps

felt by both sides. A great deal of the potential for apprehension
about the event can be removed during the preparatory stages. A
few well-chosen words and gestures to get the meeting on its way
are worth some consideration before hand.
7.3 Questioning:
Since the main objective of the appraisal interview is to get people
talking and to find out their views on matters, the appraising
manager needs to consider how best to construct questions and
statements to keep the discussion moving and relevant.
Open questions begin with what, who, why, where, how or when are
useful in getting people to talk and open up. However, too much use
of these will make the interviewer sound more like an interrogator.
Therefore, at some stage, closed questions i.e. those question
having answers as “Yes” or “No” are necessary to keep the
conversation relevant. Hypothetical questions, which offer possible
solutions, can be used to test the reactions of the appraisee and the
validity of feedback.
Rebound questions, which simply repeat the last part of the
appraisee’s response, are very useful for those who are less
forthcoming and are also helpful in probing more deeply when
necessary.
The use of silence is something, which is essential. This will help to
overcome the temptation to answer their own questions that can
influence appraisee’s reactions. The proportion of participation
should be 30% from appraiser and 70% from appraisee.
7.4 Listening skills:

Listening to the answers carefully is equally important as asking the
right questions. Maintaining eye contact, nodding, gesturing, and
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keeping an open structure are all physical indicators that listening is

taking place. The proof of real listening however is in the
interviewer’s responses in that question should be linked to the
appraisee’s answers. The best test of listening comes when the
manger summarizes. If listening and understanding has taken place
the summary will be an accurate one.
7.5 Keeping control:
Dealing with the talkative appraisee may be interesting but inkling
to go off at irrelevant tangents. To control this situation the
interviewer can blatantly interrupt to get the interview back on the
track or perhaps try a summary of the important points so far so that
it is clear that enough has been said. Changing the pace of the
interview by using more closed and specific questions for a while
might be advisable in a case like this one.
7.6 Getting people to open up:

Not getting someone to open up is the less obvious form of losing
interview control. To some degree the interviewee has control here
for often it is he or she who has decided that they will not assist in
achieving a productive outcome. Plenty of open or rebound
questions may help to get the response from less talkative subject.
The use of periods of silence by the appraiser is also worth a try.
However, the real issue here will be why the appraisee does not
want to open up. Is it mistrust of appraisal in general or of the
appraiser. Is it a failure to comprehend the relevance of the
exercise, or the lack of communication skills. It also can be a fear
of confrontation or criticism or it is the desire not to co-operate.
7.7 Over compliance:

Some appraisees approach appraisal with an over complient attitude.
They agree to everything, accept any extra objectives and take on
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board any praise or criticisms that are leveled at them. It is possible

that this attitude is taken by the appraisee to be the one that
confirms that he or she is an exemplary employee. In such cases, the
appraiser needs to investigate it and make it clear that the purpose
of the appraisal meeting is to communicate honestly so that
improvements can take place for the benefit of all. Feedback, both
negative and positive, is required from the appraisee so that this
objective can be reached and this must be emphasized.
7.8 Disagreement, confrontation, arguing:

An occasional disagreement, confrontation and argument is
inevitable in the appraisal. Dealing with heated emotions and
confrontation is a matter of stopping proceedings before they get
out of control. There is no point in carrying on a discussion in
which the parties are unlikely to reach agreement. Steering the
conversation back to an even pitch and trying to salvage a positive
conclusion is vital. Perhaps the matter can be discussed at another
time when both the sides have had time to consider it.
7.9 Agreeing action plans:

The action, which will result from an appraisal interview, will fall
broadly in 3 categories:
1. Training or remedial action in order to bring weaker areas
upto standard.
2. Further training, coaching or planned experience to develop
satisfactory or stronger areas and to broaden experience with
advancement in mind and
3. Targets or objectives to give the appraisee some goals to
work towards in the following months.
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CHAPTER 8
 OVERCOMING THE PROBLEMS OF PERFORMANCE

APPRAISAL
60
OVERCOMING THE PROBLEMS OF PERFORMANCE

APPRAISAL
o Appraisal is a time consuming exercise if carried out properly,

but should be considered as an investment.
o Manager’s ability to appraise will inevitably vary throughout the

organization. This emphasizes the needs for thorough training and
monitoring.
o Resistance to form filing may be encountered and any “paper

work” must be user friendly.
o The greatest resistance is often to the use of job description.

These are desirable to keep appraisal on an objective footing.
Where it is deemed inappropriate to use them, the burden of
maintaining objectivity is heavier.
o Often, negative attitude within the organization, run deep and are
difficult to overcome. It is important that something is seen to
happened as a result to appraisal, as soon as possible.
o Certain problems of structure may create difficulties in carrying

out appraisal :
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 Teams that are geographically disparate;

 Teams that are too big ;
 Individual who work for more than 1 boss or who move
from project to project;
 Certain production jobs may be seen as too basic to
warrant appraisal;
 Opportunities for development and promotion are
sometimes very limited.
o A lack of commitment on the part of appraisers should be

addressed by stressing benefits and ensuring that managers are
consulted as to how their responsibilities for staff development
can be carried out.
Most problems in implementing performance appraisal are

surmountable, providing that they are understood and addressed
appropriately.
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CHAPTER 9
 TYPICAL RATING ERRORS

 FIRST IMPRESSIONS
 STEREO TYPING
 HALO EFFECT
 HORN EFFECT
 CENTRAL TENDENCY
 COOKIE CUTTER EFFECT
 FOLLOW UP AND FEEDBACK
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SOME TYPICAL RATING ERRORS:
9.1 First impressions
Raters may identify some specific qualities or features of the

appraisee and quickly form an impression about him or her.
9.2 Stereo typing
It is a standard mental picture that an individual holds about a

person. It can be of that person’s sex, caste, age, physical
characteristics or features. Stereo typing results in over simplified
view of the individual and may blur the rater’s perception and
assessment of the person’s performance on the job.
9.3 Halo effect

Basing the entire appraisal on the basis of own perceived positive
quality feature or trail in the individual. Affiliation with views may
result in a higher rating than it should be.
9.3 Horn effect

Basing the entire appraisal on the basis of own negative quality or
feature of an individual. These results in an overall low rating than
what it should be.
9.4 Central tendency
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Most of the appraisal forms require the rater to justify if the

assessment is outstanding or poor. Therefore, some of the raters
may think of rating the most of the appraisees as “average
performers” to avoid giving any justification or clarification.
9.5 Cookie cutter effect

Not focusing on individual specific performance and rating all the
employees or groups of the employees the same.
9.6 Follow-up and Feedback:
 Following up action plans agreed at appraisal assists in keeping

the processes a continuous one. Follow-up is important to
maintain the credibility of the appraisal scheme, the
management of the organization and the individuals who
carry out the appraisals.
 The responsibility for individual follow-up rests firmly with

managers, who should incorporate their efforts to maintain the
momentum of appraisal into their normal priorities.
 Individuals must be given recognition and feedback about their

progress in carrying out the action plans.
 Potential failure should be picked up and dealt with before it

causes serious demotivation.
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 Senior managers should review the departments and managers.

They are responsible for picking up and act on trends, and to
consider the abilities of their managers as appraisers.
 Feedback about the appraisal scheme also should be co-ordinated

from all levels, so that it can be considered in the light of
making any necessary changes to keep the scheme as effective
as possible.
 The test of the effectiveness should be whether or not the

appraisal has met its stated objectives, if it is not so, then
concerns must be competently addressed to ensure the continued
validity of performance appraisal in the organization.
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CHAPTER 10
 INDUSTRY PROFILE
 BPO SECTOR
 BPO SECTOR IN INDIA
 CALL CENTERS
 CALL CENTER IN INDIA
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INDUSTRY PROFILE
10.1 BUSINESS PROCESS OUTSOURCING (BPO):

In today’s era the world has become a global market with
concentrated competition. Organizations have recognized that they
have to focus on their core competencies with respect to the
limitations that they have. They need to expertise comprehensively
on the core competencies and outsource the non-core activities to
other organizations that have expertise in these non-core activities
by using Business Outsourcing Services. Because of the need to
expertise in core competency, Business Outsourcing Services have
become the most sort-after business practice in the world market.
Such Business Outsourcing Services leads to the formulation of the
business or strategic partnerships. Business Outsourcing Services
have become indispensable for every business enterprise today.
Outsourcing in broad terms is a transfer of some business functions
or components of business processes to an outside contractor. To
remain competitive, many companies outsource as a way to reduce
costs, increase efficiency, and refocus critical resources. For
example, many organizations have their own IT departments
catering to their software and other IT enabled services needs; while
others go for IT outsourcing. According to one estimate from IDC,
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total global outsourcing services spending are expected to reach US

$ 200 billion by 2004.
Business Process Outsourcing (BPO) can be defined as the transfer
of an organization’s entire non-core but critical business
process/function to an external vendor who uses an IT based service
delivery. This vendor usually has expert skills in concerned
activities, and the activity is regulated by a legal contract. These
vendors administer and manage the selected process based on
defined and measurable performance criteria. BPO helps an
organization concentrate on its core competencies, improve
efficiency, reduce cost and improve shareholders value.
Broadly speaking, BPO can be associated to various business
sectors. Basically these are divided into Manufacturing and
Services, where the IT sector is just a part of the service sector.
There are different facets of Business Process Outsourcing Services.
These can be typecast into professional services, project
management, outsourcing development units with proficient
resources, and a joint venture with an offshore trader or an owned
subsidiary for offshore outsourcing services. Offshore outsourcing
services have become the best and the most popular practice
because of its lucrative advantages. The beneficiaries are not only
the clients but the service provider’s benefit a lot as well using
Business Process Outsourcing Services.
The main advantages of outsourcing include:

 Allows a business to focus on core activities.
 Streamlines the business operations.
 Gives access to professional capabilities.
 Shares the risk.
 Peace of mind that the process is in good hands (reliability).
 No worries of continually introducing new technologies.
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 Improves service quality.

 Freeze up human resources.
 Freeze up cash flow.
 Increases the control of business.
 Makes the business more flexible to change (i.e. demand).
While the disadvantages include:

 The fear of the service provider ceasing to trade (bankruptcy,
etc.).
 Loss over control of the process.
 Creation of potential redundancies.
 Other companies might also be using the same service
provider. Therefore in some cases, the best interests of the
service provider may be diluted with other users.
 Loss of focus of the customer and concentration on the
product (the outsourced process).
 The loss of talent generated internally.
 Employees may react badly to outsourcing and consequently
their quality of work may suffer.
Despite all this, companies are still outsourcing their non-core

functions, mainly to cash in on the cost saving and better quality
advantages.
10.2 BPO IN INDIA
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With all the news about outsourcing in India, it becomes worth

mentioning, the benefits that the country has reaped due to the
various functions which have been outsourced to the country. India
has been one of the favored countries as far as BPO is concerned.
The others include China, Canada etc. BPO in India is getting
popular day by day. BPO in India has been growing 70% a year and
is now worth $1.6 billion, employing 100,000 people. And as
McKinsey analysts put it, BPOs in India have to grow only 27% till
2008 to deliver $17 billion in revenues and employment of a million
people. Customers across verticals like Insurance, Banking,
Pharmaceuticals, Telecom, Automotive and Airlines seem to be the
early adopters of BPO in India. Now the latest organization joining
them is IBM, which has been making headlines all over the world.
Why is it that majority of the companies in the USA and UK and

other countries are opting for India? The main reasons include:
 Highly qualified skill pool giving superior competency.
The human talent of the country is available at extremely
low rates.
 Robust communication infrastructure.
 A large English speaking workforce.
 Appropriate time-zone difference with the west.
 The brand equity built by the software services sector.
 Improvement in international bandwidth of India’s first
private undersea cable.
 Power availability which has improved mainly in the BPO
centered areas like Mumbai, Bangalore, Chennai, Delhi etc.
 Drop in telecom rates by a good 85% in the last 3 years,
which is further going to reduce.
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 Faster adoption of well- defined business processes leads

to higher productivity gains without compromising on
quality.
 Highly qualified skill pool giving superior competency.
 Business risk mitigation.
 Economy of scale.
 Factor cost advantage.
Of the many services that these BPOs provide, some are:

 IT-services.
 Software development.
 Back-office operations.
 Call centers; and
 Other IT enabled services.
10.3 CALL CENTERS:
Call center is one of the services that a BPO can provide to its
clients. A call center can be described as a functional area within an
organization or an outsourced, separate facility that exists solely to
answer inbound or place outbound telephone calls. Usually this
refers to a sophisticated voice operations center that provides a full
range of high-volume inbound or outbound call-handling services,
including customer support, operator services, directory assistance,
multilingual customer support, credit services, card services,
inbound and outbound telemarketing, interactive voice response and
web-based services.
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How do these work? The process is very simple. Organizations have

to identify their non-core functions and then find a vendor who will
be willing to provide these services to it, at affordable rates.
Organizations looking for Call Center Outsource services can
outsource their IVR and voice broadcasting projects at their
affordable Call Center Outsource services. These Call Center
usually provide many services to their clients. Some of these are:
 Outbound Call Center Campaigns.
 Inbound Call Center IVR programs.
 Voice Broadcasting projects.
 Campaign Development and Design.
 Implementation.
 Hosting.
 Custom Reporting.
 Text-To-Speech Conversion.
 IVR Software and Database Integration.
 Professional Voice Recordings.
 Quality Transcription Services.
 Maintenance.
 Inbound and Outbound tele-sales and tele-marketing.
 Customer servicing and many others.
10.4 CALL CENTERS IN INDIA:

Having a Call Center in India is the norm for several global
companies today. In order to meet the growing international demand
for cost-effective, customer-oriented call centers, many
organizations worldwide are outsourcing these services by setting
up call centers in India. The country has been the preferred location
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due to the following intrinsic strengths which make it a major

success as an outsource destination for call center work:
 A booming IT industry, with IT strength recognized all over

the world.
 The largest English-speaking population after the USA.
 A vast workforce of educated, English-speaking, tech savvy

personnel: A boon in a high growth industry faced with a
shortage of skilled workers.
 Cost-effective manpower: In a call center operation,

manpower typically accounts for 55%o 60% of the total cost.
In India, manpower is available at a fraction of the cost
overseas. However, some people get deterred by the fact that
cost savings are not seen immediately. Initial investment in
infrastructure and training can be expensive and make one
believe that the promise of cost reduction is false. However,
there will be savings and the fact that several global giants
continue to set up call centers in India is proof of this.
 The Government of India has recognized the potential of IT-

enabled services and has taken positive steps by providing
numerous incentives.
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 The presence of most international technology vendors and

solutions has enabled creation of most advanced set-ups in
this technology- intensive segment.
India’s call center industry accounts for a quarter of all software

and services exports from the country, according to industry
association Nasscom, and Indian call centers employ 1,74,000
professionals. Daimler-Chrysler, British Telecom, Barclays bank,
HSBC, Honeywell, Aventis, and several others have come to
India while the old timers of GE, British Airways, Citigroup,
Amex, and others have been around for a decade. The latest in
this list is the IBM Corporation, which has joined the bandwagon
despite the backslash for the call centers from the US
Government.
These services that these companies usually avail from the

Indian call centers include:
 The service Helpdesk services and remote troubleshooting of
IT-related queries from clients in the US.
 Transaction processing.
 Accounting services.
 Remote Network Management.
 Service Bureau and Entrepreneur systems.
 End-to-end processing services with linkage to the parent
company. The entire processing would be carried out in the
facility in India, with a cost quality and service advantage to
the parent organization.
 And many others.
Hence, considering the growth and employment prospects that this

industry provides, it becomes one of the major contributors to the
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national growth. It has been estimated that this industry alone

would provide employment to 7-10 million people by the end of
2010, which has been the major reason of selecting this industry.
SPANCO
In 1995, Spanco went into business through the manufacture and
supply of EPABX and analogue radio products, but has since
evolved into a comprehensive networking and system integration
company. In doing so, Spanco today caters to the critical
networking needs of Indian utilities, carriers and its prestigious
Defense sector.
What is Spanco's compelling proposition for its customers?
Strong management focus making this the core business unit of

the company
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• Turnkey expertise, resulting in the capability of the company to

deliver products and services for end-to end system integration
solutions.
• Deep cutting-edge technology insight, making Spanco a
solution provider with latest and state of art technology abreast
with the industry.
• Project management capability, thanks to an integrated 4P
approach: people, process, platform and partnership, which mean
that Spanco is capable of delivering the projects with speed and
competence.
• Continued presence, which highlights Spanco's strong project
implementation supported by sustained post sale service.
• A presence among the top 10 system integrators in the
country, which means Spanco, enjoys high visibility in the
market place as a systems Integrator of repute.
• Structured market penetration translating into a diversified
and brand-enhancing customer base, which means that Spanco
possesses a confidence-enhancing referral base for prospective
customers .
Strong Focus on People Development, giving rise to a technically

competent human resources with a high degree of commitment and
motivation.
VISION
To attain a position of leadership in providing technically
competent solutions, leading to enhanced business competence for
clients, through a team of competent and motivated human resource
for overall profitability and satisfied shareholders
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VALUES
Honesty, Integrity, Excellence, Trust
Honesty - With their partners, customers and employees

Integrity - Following the highest ethical standards
Following all legal compliances
Excellence - Doing each job right and continuously improving how
they work
Developing the right
Pursuing and leveraging new technologies
Trust - Meeting their commitments to the customers
Reliability in the performance and business practices
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RESPONDEZ
Respondez is the global contact center and Business Process

Outsourcing (BPO) brand of the corporate group Spanco
Telesystems and Solutions Ltd. A world-class outsourcing
solutions company, they are headquartered in Mumbai, with
locations across India, United States, United Kingdom and New
Zealand. The organization is publicly-traded on the stock
exchange in Mumbai,(BSE Symbol: Spanco)
The services offered are primarily Voice-based Inbound and

Outbound services along with Non-Voice BPO and KPO services.
Respondez's highly qualified and trained professionals are based

in the process transition and client servicing offices in the US,
UK, and New Zealand, with two offshore delivery centers located
in Mumbai, India.
Their ethos is to work as a Business Partner, to seed, nurture and

develop a long term association rather than working purely as a
service delivery vendor.
 The Financial Security and stability of a profitable publicly-

traded company that has shown consistent growth.
 Senior personnel who have a range of experience acquired in
different country settings and a deep cultural understanding.
 Significant Experience and proven track record of managing
customer-centric activities across verticals.
 Robust Infrastructure and state-of-the-art Technology
Environment Strong Process Driven Environment to ensure
On-time, Accurate and Consistent Delivery.
 Highest quality telecom-related processes and adherence to
international standards for contact center processes.
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 Customer-centric continuous improvement philosophy of

Six-Sigma for effectively and efficiently meeting and
exceeding customers' requirements consistently.
 Recruiting, training, motivating and retaining the best talent
across functional areas. Their approach is to invest in
people. High Flexibility to accommodate changes and
fluctuations in business requirements
Several first-time customers of Respondez are now repeat clients

due to their processes that deliver quality on time and within cost.
This expertise is part of Respondez's service backbone. A typical
process flow after the Contractual sign-off:
Quality Assurance and Compliance for Sustained Operational

Excellence
The mission of the Quality Assurance (QA) team is to enhance and

extend current quality practices to client process. The QA team
accomplishes the highest service delivery standards by:
 Effectively Maintaining the Quality Management System

 Benchmarking for Continuous Improvement
 Ongoing Training and Development
 Quality calibration sessions are held to evaluate
performance against SLA ( Service Level Accuracy)
 Regulatory Compliance is ensured as applicable
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Their clients can monitor agents on a real time basis, and closely
track the interaction experience being delivered to their
customers. The methodologies used for monitoring are:
 Call Recording
 Monitoring through live barge-ins
 Capture the "Voice of the Customer"
People represent the key growth drivers in the business.

To enhance customer value, Respondez's Human Potential
Management team harnesses member competencies with its
'CARE' approach:
C = Career planning
A = Ample opportunities
R = Rapid growth and development
E = Employee centric
Respondez motivates its people via:
 Outstanding work environment blending formal and informal

components
 Excellent growth opportunities for horizontal and vertical
development
 Family-feeling between members
 Ongoing appraisal and attractive reward and recognition
programs
 Grievance cell
 Job rotation and leadership development at all levels
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 Valuable employee benefits
Key Employee Ratios
Team leader: agent 1:12
Shift-in-charge: team leader 1:5
Shift-in-charge: agent 1:60
Service delivery leader: agent 1:120
Trainer: agent 1:60
QA monitor: agent 1:20
Training
Respondez's consistent quality derives from proactive training that
spans knowledge, attitude and these skills:
 Cultural
 Conversational
 Selling & Marketing
 Listening
 Telephone etiquette
 Process training
 Accent neutralization
 North America and UK orientation training
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 Product training
 Objection handling
 Time management
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SPARSH
The Company - Sparsh is the Domestic Subsidiary Intelenet Global

Services (P) Ltd.
Sparsh is dedicated towards adding value and substance to its client

business through offering superlative and completely customized
services. It provide state of the art solutions to Vertical Industries
to meet their voice and BPO needs, operating 4500 seats on 24 x 7
basis, scalable upto 20,000 seats by 2009.
With a dedicated and strong work force of 3500 employees, Spanco

provides qualitative solutions in the areas of telecom and call center
services.
Motivated professionals who aim to achieve excellence through

dedicated teamwork attend to every contact with zeal. They take
pride in their ability to deliver efficient services at affordable price.
Sparsh is the domestic subsidiary of Intelenet Global Services (P)

Ltd.
The services are individually designed and customized for each

client organization. With the right combination of people,
processes, knowledge sharing and technology they provide cutting
edge outsourcing solutions, thereby ensuring significant cost
savings in the long term.
The Transaction processing solution ensures that our client's

manpower is free to contribute towards their core business. Sparsh
has the capability to streamline and enhance mission-critical
operations and has customized solutions for different industry
verticals
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With the Web enabled service, they can help to improve customer
service satisfaction and increase online sales. It offer full sales and
customer support utilizing online chat, email, and telephone web
integration tailored to any company's needs.
Sparsh can integrate your Internet communications into its 24-hour

call center to provide, among other things, online customer service
and ordering assistance using voice or text communications. This
service is designed to give the online customers the immediate
attention they want, and to reward you with increased website.
The services can provide any company with a consistent means of

handling the customer and prospect web requests. Whether they are
visiting your site to request information for technical support, or to
place an order, Sparsh can design a program that will make a visit
to your website a positive experience for everyone.
Just a few of the Back Office services Sparsh provide for any
company are:
 Information requests
 Technical support
 Product orders
 Refund requests
 Return merchandise
 On-line help desk
 Web Call Back
 SMS Collaboration
Sparsh’s strengths:
 Strategic Locations
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 Specialization spread over a Decade

 In-house Technology Support
 Unmatched Quality Standards
 Multi Language Support
 Various ways of Communication like E-mail/ Fax/ On-line Chat
help besides ‘VOICE’
 A well trained and focused work force
 State-of-the-art infrastructure facility on a large scale
 ISO and KPMG Certified
 A well balanced management team
 Centralized services offering call routing
 Organizational focus on thorough customer satisfaction
 Extremely competitive pricing
 Optimum service levels and Customized Solutions
 Lowest Attrition rate
 High Database security
 Only Domestic Call Centre providing transport facility to
Customer Service Agents
INBOUND CALL MANAGEMENT
Sparsh focus on building a relationship that lasts by using a

personalized approach that provides the value addition necessary to
maintain and grow your client base. All incoming calls are received
and addressed with an appropriate project greeting. Using the
Automatic Call Distribution (ACD), the call is then transferred to
the Customer Service Associate. Optimum usage of technology
enables them to monitor every stage of interaction between the
Customer Service.
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Their CSRs' receive in-depth training in the customer’s products,

services, culture and business objectives they take that knowledge
and translate it into a first-class frontline customer representation.
This service is enhanced by our CRM (Customer Relationship
Management) application.
Inbound callers typically call toll-free numbers to request product

or service information; place orders for advertised products or
obtain assistance with a previous order or purchase. They can
provide toll-free numbers for their clients or use previously
established numbers.
Sparsh provides inbound call center services for both the Business
to Business and Business to Consumer markets which are provided
24 hours a day, 7 days a week, 365 days a year, completely
uninterrupted. Partial list of the services offered are as follows: -
 Customer care
 Order processing and fulfillment through satisfactory services
 Pre Sales Help Line
 Supporting Mail Order Business
 Surveys
 Technical Support
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 Post Sales Service

 Contests & Promotions
OUTBOUND CALL MANAGEMENT
Sparsh combines the capability and expertise in order to provide

you with the right solution, taking into consideration the industry,
proposition, timing and target market. Sparsh engages in the full
process of project planning and set up, ensuring a full
understanding of your requirement giving you the full benefit of
their many years of experience within the call center industry.
Do you need to increase your customer base? Would you like to

increase your sales?
Sparsh can help you achieve your goals. It provides both Business-
to-Consumer and Business-to-Business outbound tele-services.
These services include lead generation through customer awareness,
lead qualification, customer account management, outbound
customer service and survey programs. Sparsh have a much focused
list of service offerings primarily specializing in outbound
solutions, including:
 Lead Generation / Qualification / Management / Conversion

 Events & Seminar Population Management
 Product / Service Promotion
 Tele Research
 Debt Collection
 Up-Selling & Cross-Selling Campaigns
 Customer Satisfaction Surveys
 Customer Loyalty Programs
 Database Cleaning & Validation
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 Invitational, Welcome & Thank You Calling

 Market Research
 Internet Response Follow-up / Confirmation
 SMS Confirmatory Calls
 Third Party Verification
 Contests & Affinity Programs
INDUSTRY SEGMENT SPANCO TELESYSTEMS PVT

LTD CATERS:
 Insurance
 Banking
 Telecom
 Travel and Tourism
 Retail
 Food and Beverages
 Consumer Durables
 Healthcare
 MEDIA/ Satellite Channel
APPRAISAL AT SPANCO TELESYSTEM PVT LTD.
 Spanco has 2 divisions of its company.

 Domestic call center known as Spanco Sparsh and
 International call center known as Respondez. It mainly
caters to the customer in UK and USA.
89
 Activity carried out is of sales, customer service, technical

process, and 3 r d party collection.
 The organizational structure is vertical hierarchy with informal
work conditions.
Project Leader
Team Leader
Senior Trainer
Trainer
Senior Service Customer Agent
Customer Service Agent
 The various divisions in HR department are attendance,

recruitment. Training and development, remuneration and
compensation. It also has a separate HR Accounts department
to look after the remuneration, compensation and tax aspects.
The attendance is marked after swiping of the ID card
whenever you enter and exit. If there is more than 4 absentees
then there is a reduction in the incentives and salary of Rs.250.
 The appraisal is held every six months.
 The appraisers are the head of the HR department and the
persons who are well-versed with the technicality of the job.
 The main purpose of the appraisal programme is to motivate
people to work and to attain better results. Also it is done to
increase the work efficiency. It is also done to know whether
90
the candidate who is working is suitable for the work or he

needs to be replaced by some one more efficient.
 The pre-appraisal forms are not provided to the employees but
are informed about the appraisal nearly 4 months in advance so
that they can improve on the aspects in which they are lacking
behind.
 There are certain parameters on which the performance is
measured, few are listed below:
• Attendance
• Service level
Key parameters tracked and benchmarked against Service Level

Agreements are :( inbound)
 Conversion Ratio (for Inbound Sales)
 Average Speed of Answer
 Average Handling Time (includes Talk time and Wrap-up
time)
 Abandon Rate
Key parameters tracked and benchmarked against Service Level

Agreements are: (outbound)
 Sales Per Hour
 Contacts Per Hour
 Conversions
 List Penetration
 Talk Time
 There are separate appraisal processes for employees at

different level as their work is different and requires qualified
person for the appraisal process.
91
 The performance interviews are held in special rooms. The

candidate is called on a specific day. He is informed about the
evaluation that has been made. Several questions based on his
performance are asked, the candidate is made to open up and
give his view about the appraisal process and he is marked
according to the performance during the interview. The
appraisers are trained so that they would do a good job of
appraising a right candidate. They are provided with the
correct data with all the relevant information regarding the
candidate and his work then by observing his performance
record the appraisers is asked to evaluate or rate the appraisee.
 The standard performance level is 85% of successful calls
resolved i.e. more than 85% of the problems must be solved
and the caller must be satisfied with the solution provided by
the employee.
 The appraisees are evaluated strictly on their performance and
the quality service they provide to the customers. The main
crux of call centers is to provide quality service at minimum
cost and in minimum time.
 Problem faced by the company during appraisal is that there is
a chance of biased appraisal which is against the principles of
appraisal. It might be due to personal contact of the appraisee
with the appraiser, the halo effect, the horn effect; some
candidate may find it difficult to open up, all these results in
problems for the appraiser and the company to carry out the
performance appraisal process.
 By performance appraisal there is a chance of higher pay which
is the biggest motivator in the call center industry. There is
high possibility that the employees would be more interested
and keen to perform better once they get good rating in the
appraisal process and there is a hike in their remuneration.
92
 After the appraisal process is fully done with it becomes clear

where the appraisee is lacking behind and that area is
considered for his training. Similarly, each employee’s training
needs are assessed and a training and development program is
arranged.
 The raters in Spanco limited are the project leaders and the
team leaders also the employees are rated by their own
colleague as they would know much in detail about the
appraisee’s work.
 The follow up procedure is carried out in such a way that it
does not interrupt the ongoing process. The records are kept
with the HR department and the concerned person keeps a track
on the appraisee performance after the appraisal process and
marks it down if there is any change in the working pattern.
 The appraisal process in Spanco is both individual and group
appraisal.
 Also the appraisal process is open and is strictly based on the
performance of the individual to avoid any grievance on the
part of the appraisee and fellow employees.
93
ANNEXURE I
PROPOSED IDEAL FORM OF PERFORMANCE APPRAISAL

FOR CALL CENTER
Based on the interaction with industry experts and information

gathered from primary sources the appraisal form has been
94
designed. The main criteria, on which performance would be

assessed, include:
 Actual sales made, in numbers. The records should be
daily, weekly and monthly.
 Effective time taken to service customer complaints.
 Effectiveness and efficiency in handling customer
grievances.
 Leadership skills.
 Team working abilities.
 Cheerfulness while at work.
 General behavior towards colleagues, subordinates and
superiors.
 Adherence to the rules and codes of the company.
Based on these basic criteria, the performance appraisal form has

been designed. It has been attached as annexure.
QUESTIONAIRE:
1. Corporate profile of the company?
2. How is the organizational structure?
3. How is the structure of personnel and HR department?
95
4. How frequently do appraisals take place?
5. Are the appraiser trained for doing the appraisals?
6. What are the main purposes of these appraisals?
7. Is pre-appraisal form given to the employees?
8. On what criteria is the performance measured?
9. Are there separate appraisal processes for employees at various

levels?
10. How is the performance appraisal interview held? How do the

appraisers prepare for the appraisal interviews?
11. What are the standard performance levels & key performance
areas?
12. How are the appraisees evaluated?
13. What are the problems faced?
14. How are the employees motivated to perform better?
15. How is the need for training assessed?
16. Who are the raters in case of CRE appraisals?
17. How do you follow up?
18. A copy of the performance appraisal form.
19. Is it done individually or it is group appraisal?
20. How does the performance management system work in your

organization?
21. Is it open or secret?
96
97
ANNEXURE II
IDEAL PERFORMANCE APPRAISAL FORM FOR CALL

CENTER:
98
Employee
Name:______________________________________________
_
Job
Function:___________________________________________
Review
Date:
________________________________________________
Quality of work
Work is performed neatly observations

and is accurate. Work is
consistent, thorough and
complete.
 Outstanding.
 Exceeds expectations.
 Meets expectations.
 Improvement needed.
 Unacceptable.
 Not applicable.
Quality of work
Amount of work observations
99
performance on a daily
basis as necessary for the
job function.
 Outstanding.
 Unacceptable.
 Not applicable.
Job knowledge
Understands the job observations

requirement & has specific
content knowledge where
appropriate.
 Outstanding.
 Unacceptable.
 Not applicable.
1. Performance: Exceptional= Work & attitude far exceed

standards.
100
2. Performance: Satisfactory= Work & attitude meet a certain

set of standards.
3. Performance: Needs improvement= Work & attitude are
below standards.
The job duties have to be taken from the job description of the
position, and then rated as per the scale given above. Space is
provided for comments.
1. Job
1:_______________________________________________
2. Job
2:________________________________________________
3. Job
3:________________________________________________
4. Job
4:________________________________________________
5. Job
5:________________________________________________
6. Job
6:________________________________________________
7. Job
7:________________________________________________
101

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Performance Appraisal

 MEANING AND DEFINITION

 PERFORMANCE APPRAISAL AS A NATURAL PROCESS

 OBJECTIVES OF PERFORMANCE APPRAISAL

 BENEFITS OF PERFORMANCE APPRAISAL

Today’s working culture demands a great deal of commitment and effort

Appraising the performance of individuals and groups and organizations

It is important that the employees are aware of their goals, how to

or “Nothing comes out of it anyway.” A significant consideration in

Performance appraisal must be seen as an intrinsic part of a manger’s

1.1 MEANING AND DEFINITION:

In simple terms performance appraisal may be understood as the

A formal definition of performance appraisal is:

“It is the systematic evaluation of the individual with respect to

A more comprehensive definition is:

“Performance appraisal is a formal structured system of

The second definition includes employee’s behavior as part of the

Performance in a job is a matter, which needs to be considered both in

Performance appraisal appraises performance of an operating unit, like

appraisals start from facts/data, lead to opinions on adequacy/

b. Inputs (what are his skills, behavior patterns, motivation etc.)

1.2 PERFORMANCE APPRAISALS AS A NATURAL PROCESS OF

Performance appraisal as a natural process of management for three

success in the organization.’ Have a success – oriented strategy does not

1.2.1 IMPROVING PERFORMANCE:

1.2.2 EXERCISING LEADERSHIP:

Achieving the task involves leaders in getting answers to the following

o Bearing in mind the importance of expectations as an influence on

o Creating conditions where individuals can best satisfy their own

the arts of leadership is to get people to think for themselves about

The process of performance appraisal is essentially a means for

Performance appraisal is potentially useful for managers in many ways.

1.3.1 OTHER OBJECTIVES ARE AS FOLLOWS:

The purpose can be highlighted by way of the following chart:

General application Specific purpose

Development Uses:  Identification of individual needs.

 Identification of individual strengths and

Administrative uses:  Salary.

 Retention of individual performance.

 Recognition of individual performance.

 Identification of poor performers.

 Evaluation of organizational goal achievement.

 Information for goal identification.

 Reinforcement of organizational development needs.

1.4 BENEFITS OF PERFORMANCE APPRAISAL:

1.4.1 A. Benefits to the organization :

• Facilitates the achievement of organization goals and

• Contributes to improved staff morale.

• Facilitates continuous performance improvement, organization

• Assists in establishing a performance culture – of quality,

• Provides a formal means of discussing competency gaps and

• Helps build a climate of openness and trust.

• Adds to a participative work culture.

• Forms part of the legal process in addressing persistent poor

• Provides the basis for fair remuneration based on actual

• Also provides systematic judgments to back up transfers,

1.4.2 B. BENEFITS TO EMPLOYEES:

• An opportunity to get formal feedback from line managers on

• Ensures clarity regarding work expectations and standards,

• An opportunity to discuss their job competencies (or lack

• Provides a forum to share new idea and to air views.

• Can be used as a base for coaching and counseling the

 APPRAISAL AND MANAGEMENT STYLE