Final GTL SIP Report

A
PROJECT REPORT
ON
Performance Appraisal in GTL
Limited, GTL Lucknow”
Submitted For Partial Fulfillment of the

DIPLOMA of Post Graduate Diploma in
Management under AICTE,
New Delhi
(2009-2011)
Submitted To:
Submitted By:
Prof.P.K. Aggarwal Mr.

Ravi Shukla
Director,
Roll no – M09034
IIMT Professional College PGDM
III Sem.
IIMT Professional College, Meerut

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Student’s Declaration
I hereby declare that the project entitled “Performance Appraisal in GTL
Limited” and the information presented in this report has been written by me on
the basis of summer internship at GTL Limited, Lucknow during the month of
10 June 2010 to 10 August 2010, is correct to the best of my knowledge and the
report presented has not been published anywhere else.
Date
Place Ravi Shukla

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Acknowledgement
It is great opportunity for me to convey my heartily regards to those who helped
me to make this report purposeful.
First of all I would like to convey my never ending gratitude towards my
Respected Faculty Miss. Anu Mittal. She has been the constant source of
inspiration for me. My sincere thanks to all Staff Members of GTL Limited B/O
Lucknow, and also to all my Respondents for their co-operation and amicable
behavior. I wouldn’t like to miss an opportunity to thank all my Faculty
Members, Library Staff for the valuable support and advices. I wish to thank all
seniors, Friends, Colleagues and other people who helped me to make my
research successful, without their help this report couldn’t have been possible.
Finally I would like to express my deep sense of gratitude and indebtedness to
my Honorable Director Sir Dr. P.K.Aggarwal and Family Members for their
never-ending support and love.
“Gratitude is short lived but when put down in black and white;
one can hope that it will enjoy a longer.”
Ra
vi Shukla

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Preface
Management training has gained rapid and tremendous importance over the past
some years, management was previously considered as an in born art or talent but in
today’s fast developing world, this has been modified.
I undertook summer training program in GTL Limited, Lucknow, as an essential and
obligatory part of Post Graduate Diploma in Management of IIMT Professional
College and the project “Performance Appraisal” is to analyze the factors which
influence the employee’s performance. . The cause behind the failure of an
organization is many & multidimensional. Employee’s lack of motivation & moral
on job performance is one of the critical areas which seem to be associated in the
overall problem. The work on this project was started to test the theoretical
knowledge in practical relevance and measure the performance of employees.
The summer training was s interesting, inspiring, satisfying, learning and
academically awarding.

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Table of Content
 Company Certificate
 College certificate
 Declaration
 Acknowledgement
 Preface
 Company Profile
 Our Vision & Mission
 History
 Infrastructure & Awards
 SWOT Analysis
 Introduction of Appraisal
Technique of performance Appraisal
 Purpose of Performance Appraisal

 Process of measuring Performance Appraisal
 Approaches for Measuring Performance
 Criteria For Performance Appraisal
 Tools of Performance Appraisal
 Legal Aspect of Performance Appraisal
 Problems/Errors in Performance Appraisal
 Drawbacks of Performance Appraisal
 Objective of Study
Research Methodology
 Performance Appraisal System in GTL Limited

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 Graphical Representation & Interpretation
 Conclusion
 Recommendation
 Questionnaire
 Bibliography
Company Profile
Date of Establishment 1987
Revenue 286.513 ( USD in Millions )
Market Cap 39270.13279 ( Rs. in Millions )
Corporate Address Global Vision ,Electronic Sadan 2 M I D C,T T C
Industrial Area Mahape Navi Mumbai-400710,
Maharashtra
www.gtllimited.com
Management Details Chairperson - Tirodkar Manoj G
MD - Tirodkar Manoj G
Directors - Apte Vidyadhar A, Apte Vidyadhar S C,
Ayyar T N V, Naik Charudatta K, Navathe Shamkant
B, Patil Sadanand D, Poddar Dipak Kumar,
Sahasrabudhe S C, Sethi Vinod, Tirodkar Manoj G,
Vij Vijay, Vijay Vij
Business Operation IT – Software
Background GTL, incorporated in 1987, is amongst the leading
network services company. Being part of Global
Group, the company offers a complete solution in
Network Life cycle starting from planning and design
to deployment, to operations and maintenance and
enhancement and evolutions.
The company’s services are widely used by WiMAX,

CDMA, GSM, fixed line telecom carrier, OEMs and
leading corporate across the word
Financials Total Income - Rs. 15199.697866 Million ( year
ending Mar 2009)
Net Profit - Rs. 1097.721501 Million ( year ending
Mar 2009)
Company Secretary Apte Vidyadhar A
Bankers Andhra Bank, Axis Bank , Bank of Baroda, Bank of
India , BNP Paribas, Canara Bank , Dena Bank,

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Deutsche Bank, Development Credit Bank, HDFC
Bank, HSBC Bank, ICICI Bank, IDBI Bank, Indian
Bank, Indian Overseas Bank, Indusind Bank, Small
Industries Development,
Auditors Godbole Bhave & Co, Yeolekar & Associates
Our Vision
To be the world’s largest “ Network Services
Provider”
Our Mission
To establish technology partnerships with end users and Original Equipment
Manufacturer (OEM) organizations on a global basis, to deliver the highest quality
and most cost-effective network services solutions.
Our Core Values
• Integrity proactively manage change
• Delight customers through superior services
• Develop entrepreneurs through an achievement -oriented culture

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• Build a technology-savvy organization
• Share knowledge and focus on end-result
History
GTL Limited, a Global Group Enterprise, is a leading Network Services company,
offering services and solutions to address the Network Life Cycle requirements of
Telecom Carriers and Technology providers (OEMs). GTL’s consolidated
revenues for FY 2009-10 ending March 31, 2010 stood at Rs. 2236.94 Crores (US$
478.80 million). Today GTL executes projects across 46 countries and has built over
70 cellular networks. Global Holding Corporation Pvt. Ltd. is the holding company
of “Global Group” that has 7 operating companies, two of which are listed on Indian
Stock Exchanges. The Group is expected to have revenues in excess of US$ 1.5
Billion, Balance sheet size of over US$ 5 Billion and more than 35,000
professionals by FY 2011. The Group has Operations across 46 countries, employs
people of 22 nationalities and supports 18 social causes. For over 2 decades Global
Group has been partnering with leading telecom operators and OEMs offering its

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expertise in wireless communications. From 2G Networks to 3G and 4G, from
WiMAX to IPTV, Global Group provides complete life-cycle solutions around
Network Services. The services include Network Planning and Design, Network
Deployment, Network Operations and Maintenance, Infrastructure Management,
Energy Management and Professional services.

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Timeline
1985 – 1987
GTL Tele-Systems, a private limited company was incorporated. GTL Telecom a

partnership firm was formed.
1988 – 1989
The company launched products such as single line push button phones, servicing of
telecom products, distribution of Apple Computers and Desktop Publishing
Systems. GTL commissioned a new customer services division- GTL Care
1990
GTL plans to develop pan-India distribution network and established 3 offices.
1991
The company forms its first major international tie-up with Murata, Japan. It
establishes a Networking and Engineering Services division
1992
GTL goes public with an Initial Public Offer (IPO) issue of Rs 1.80 crore, which
was oversubscribed by 53.17 times. The company submits an application to
Department of Telecommunications (DoT) in order to facilitate data related
services.
1993
GTL develops Interactive Response System, Instant Voice Access System, and
Message Switching and starts turnkey execution of projects for Voice and Data
Networks and projects on wireless networks. The company establishes a group
company, GTL Electronic Commerce Services (GECS), to provide value added
services. The same year the company receives license from DoT for data related
services.

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1994
GTL develops fiber optics and V-SAT networks for transmission of voice, data and
multimedia communication.
1995
The company completes commissioning of the largest private nationwide data

network in India covering nine cities at a cost of over Rs. 100 corers. GTL achieves
turnover of Rs 200 crore. It also expands its service network to 26 locations across
India.
1996
The company starts data network services such as Enhanced Fax, Electronic
Messaging and E-Commerce through EDI technology (GECS)
1997
In order to start call Management Company in India, GTL forms joint venture with
Broad system Multimedia, Australia.
1998
The company plans to cease its product businesses
1999-
GTL received ISO 9002 certification. It also sets up an Oracle Competence centre
and Nortel CISCO Labs.
2000
The company develops B2B service applications – GTL E-enterprise – an Enterprise

Resources Planning (ERP) package for small and medium enterprises. It exits from
its Subscriber End Terminal Division.
2001

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The company merges with group company – GECS. The same year it acquires two
software companies Fine Infotech (FIL) and Thermax Systems & Software (TSSL).
The company sets up call centre spread across in 1, 20,000 sq. ft. of area in Navi
Mumbai. In order to develop Security Solutions for enterprises was starts 51%
subsidiary, GTL E-Secure. The company is rechristened as 'GTL”.GTL ranked
amongst ‘Best 200 Small firms’ by Forbes Magazine
2002
The company strengthens its international presence with over 100 employees and 11
offices. It is being assessed at SEI-CMM Level 4 for Enterprise Solutions –
Software Development.
2003
The company sets up IGTL Saudi Arabia to execute the Saudi Telecom Project.
2006
GTL acquired UK Based Genesis Consultancy. Listing of GTL Infrastructure, a spin

off from GTL as part of the restructuring process. Company opens office in
Thailand. The company received its first project in Africa
2007
The company sold its Enterprise Networks and Managed Services business to
Orange Business Services, an arm of France Telecom. GTL formed a strategic
alliance with Ericsson UK, to offer Managed Network Infrastructure Services to
customers in UK and Ireland. GTL International 100% subsidiary of GTL acquires
SCS, a Network Deployment Company in USA and ADA Cell works, a leading
Network Planning and Optimization player in Asia Pacific.
2008
The company enters a strategic alliance with Vanu Inc to Conduct Shared Active
Infrastructure Field Trials in India.

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Awards
• GTL has received Golden Peacock Global Award for

Corporate Governance in 2007.
• The company received Business for Social Responsibility
Award from BSE and ITM.
• GTL also received Amity Business Award for Social
Responsibility in 2008.
Fact Sheet
Company Name – GTL Limited
Company Type - Global Network Services Provider Company
Date of Establishment - November 2, 1987
Chairman, President and CEO - Tirodkar, Manoj G.
Employee Strength – Total - 7,066 (As on March 2010)

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Offices – Corporate Office- Mumbai, (India) Operational Headquarters: Navi
Mumbai (India) Worldwide Offices: 46 countries spread across Africa, Asia-
Pacific, Middle East, North America, South Asia and Western Europe
Email: marketing@gtllimited.com
Introduction to Appraisal
Appraisal is or should be an integral part of a system of managing, knowing how
well a manager plans, organizes, staffs, leads and controls is really the only way to
ensure that those occupying managerial position are actually managing effectively.
If a business, a Govt. agency, a charitable organization or even a university is to
reach its goals effectively and efficiently, ways of accurately measuring
management performance must be found and implemented.
Choosing the Performance Appraisal Criteria
The appraisal should measure performance accomplishing goals and plans as well as
performance as a manager. No one wants a person in a managerial role who appear
to do everything right as manager but who cannot turn in a good record of profit
making, marketing, controllership, or whatever the area of responsibility may be.

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Performance Appraisal
Performance appraisal can be applied as an effective tool for managing and
developing individual performance.
The performance of an organization is the application of the some total of individual
learning among its member. Performance appraisal is the point at which corporate
objectives and translated into individual performance improvement goals and
measures.
Performance appraisal is the point at which we assess how effectively individuals
are meeting goals and needs of organization.
The important role of performance appraisal is supporting the business objective
of organization in becoming more widely understood and organization are
modifying their process to incorporate this wider understanding. Effective
performance appraisal should be recognized the legitimate desire of employees for
progress in their profession, one way to integrate organizational demand and
individual needs is through career management which an be part of Performance
appraisal. Appraising the performance of manager is itself an important and
challenging activity. Its important derives from the functions its serves.

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A systematic and equitable appraisal system provides information crucial for
decision about selecting managers and assigning them to appropriate job for the
allocation of rewards both financial compensation and promotion and for the
development of management.
“Performance Appraisal may be defined as a structured
formal interaction between a subordinate and supervisor,
that usually takes the form of a periodic interview (annual
or semi-annual), in which the work performance of
subordinate is examined and discussed, with a view to
identifying weaknesses and strengths as well as
opportunities for improvement and skills development”
In many organizations – but not all – appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are used
to identify the better performing employees who should get the majority of available
merit pay increases, bonuses, and promotions.
By the same token, appraisal results are used to identify the poorer performers who
may require some form of counseling, or in extreme cases, demotion, dismissal, or
decreases in pay. (Organization needs to be aware of laws in their country that might
restrict their capacity to dismiss employees or decrease pay.)

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Whether this is an appropriate use of performance appraisal – the assignment and
justification of rewards and penalties – is a very uncertain and contentious matter.
Logically there are two distinct problems: How to determine what the performance
actually was e.g. MEASUREMENT PROBLEM and how what the standard should
be, e.g. THE CRITERION PROBLEM. Each of these will be consider in turn.
Why Performance Appraisal?
Performance appraisal is a vehicle to: -
1. Validate and refine organizational actions (e.g. selection, training); and
2. Provide feedback to employees with an eye on improving future
performances.
Validating and refining organizational actions
Employee selection, training and about just any cultural or management practice–
such as the introduction of a new pruning method or an incentive pay program–may
be evaluated in part of obtaining worker performance data.
The evaluation may provide ideas for refining established practices or instituting
young ones.
Data from performance appraisals can also help management to
• Plan for long term staffing and worker development,
• Raises the pay or give other rewards,

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• Set up an employee counseling session,
• Institute discipline and discharge procedure.
Employee need for feedback
Although employees vary in their desires for improvement, generally people want to
know how well they are performing. People need positive feedback and validation
on a regular basis. Once an employee has been selected, few management actions
can have as positive an effect on worker performance as encouraging affirmation.
These are, in effect, good-will deposits, without which withdrawals cannot be made.
This does not mean you should gloss over areas needing improvement. When
presented in a constructive fashion, worker will often be grateful for information on
how to improve shortcomings. Such constructive feedback, however,” can happen
only within the context of listening to and caring about the person.” In general,
supervisors who tend to look for employee’s positive behavior – and do so in a
sincere, non-manipulative way – will have less difficulty giving suggestion.
Feedback may be qualitative or quantitative. Qualitative comments are descriptive,
such as telling the employee you appreciate the timeliness and quality of his work.
In contrast, quantitative feedback is based on numerical figure, such as percentage

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of successful project that have taken some researches feedback is particularly useful
when employees have an achievement objective.
Techniques of performance
Appraisal
Effective Performance Appraisal System content two basic systems operating in
congestion: An evaluation system and a feedback system.
The main aim of the evaluation system is to identify the performance gap(if any).
This gap is the shortfall that occurs when performance does not meet the standard
set by organization as acceptable.
The main aim of the feedback system is to inform the employee about the quality of
his or her performance. However, the information flow is not exclusively one way.
The appraisers also receive feedback from the employee about job problems, etc.
One of the best ways to appreciate the purpose of performance appraisal is to look at
it from the different viewpoints of the main stakeholders: the employee and the
organization.
Eichel and Bender (1984) grouped Appraisal techniques are into three methods as-
 Comparative method,
 Outcome oriented method and

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 Absolute method.
(1) Comparative Method: The comparative method are relatively simple
and natural, but lack sensitivity and behavioral specify, Eichel and Bender define
Comparative method as those systems that compare people with one another,
including ranking, paired comparisons and forced distribution. This technique might
be adequate for compensation or promotion purpose (e.g. bonus for the top 10%) but
they are useless or giving precise feedback to improve performance. Notice that this
technique use people as the criteria of evolution.
(2) Outcome oriented Method: Eichel and Bender means that technique
that measures the outcomes of performance, these may be direct indices such as
profit for the unit, increased sales or reduced turn over or they may be standard of
goals for performance set by the supervisor, by the manager or through negotiation
or mutual agreement of both parties, in the case of MBO for instance, the goals are
set in advance and appraisal is done after six months or a year is in terms of those
goals.
On the other hand direct indices such as profitability or increased sales are not
unequivocal signs of managerial performance; for example, changes in the economy
or the business environment may confound these measured in terms of these specific
outcomes maybe overlooked and since the emphases in on the product of
performance, not the behavior used to achieve them information for coaching
feedback and for developmental training and career planning is missing.

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(3) Absolute Method: It is the last method of Eichel and Bender, where the
focus is on what the manager actually did, not on how he/she compared to others or
what product were. In this grouping, than behavior are the criteria of appraisal and
the criterion problem becomes the isolation of a set of behaviors that are to be
valued. This technique includes assessment by the supervisor on the basis of
observation and is written in a narratives essay.
(4) Critical Incident Technique: This technique developed by Flangan
(1954) information about behavior is collected according to a structural format
usually written, which is designed to document behavioral detail about episodes of
effective and ineffective performance, Behavior abstracted from these reports are
thought to critical to performance.
A major disadvantage of this technique it the large time investment necessary.

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Purpose of Performance Appraisal
In general the appraisal systems serve a twofold purpose-
1. To improve the work performance of employees by helping them realize and
use their full potential in carrying out their firm’s mission.
2. To provide information to employees and managers for use in making work
related decisions.
More specifically appraisals serve the following purposes.
a) Appraisals provide feedback to employees and help management in identify
the areas where development efforts are “needed to bridge the gaps” thereby
serving as vehicles for personal and career development.
b) It helps management - spot individuals who have specific skills so that their
promotions/transfers are in line with organizational requirements.
c) Appraisal serves as a key input for administering a formal organization
reward and punishment system.
d) The performance system can be used as a criterion against which selection
devices and development programs are validated.

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The purpose of performance appraisal can be divided into two categories-
1. Administrative
2. Self- improvement
1. Administrative purpose-
From the organizational viewpoint, one of the most important reason for having
a system of performance appraisal is to establish and uphold the
Principle of accountability.
For decades it has been known to researchers that one of the chief causes of
organizational failure is “non-alignment of responsibility and accountability”. Non-
alignment occurs where employees are given responsibilities and duties, but are not
held accountable for the way in which those responsibilities and duties are
performed. What typically happens is that several individual or work units appear to
have overlapping roles.
To overlap allows—indeed actively encourages –each individual or business unit to
“pass the buck” to the others. Ultimately, in the severely non-aligned system, no one
is accountable for anything. In this event, the principle of accountability breaks
down completely. Organizational failure is the only possible outcome.

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In cases where the non-alignment is not so severe, the organization may continue to
function, albeit inefficiently. Like a poorly made or badly tuned engine, the non-
aligned organization may run, but it will be sluggish, costly and unreliable. One of
the principle aims of performance appraisal is to make people accountable. The
objective is to align responsibility and accountability at every organizational level. It
includes-
 Promotion --- This is the most important administrative use of
performance appraisal. Through performance appraisal, management can
select the right type of existing employee or filling higher position.
 Transfer--- It is necessary to consider various types of personnel actions
such as transfer, layoffs, demotion and discharge because of unsatisfactory
performance.
 Wages and salary---Wage increase are based on performance
appraisal report.
 Training and development---performance system can be helpful
in identifying the areas of skills or knowledge in which certain employee are
not up to mark.
 Personnel research--- Performance Appraisal helps in research in
the field of personnel management.

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Self Improvement-
Performance appraisal system brings out the deficiencies and shortcomings of
employees. The discussion between the superior and sub-ordinate conduct a spirit of
co-operation and mutual understanding. It gives a chance to employee to take
suitable step to improve their performance.
From the employee viewpoint, the purpose of performance appraisal is four fold.
(1) Tell me what you want me to
do.
(2) Tell me how well I have done
it.
(3) Help me improve my
performance.
(4) Reward me for doing well.

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Factors Affecting Performance Appraisal-
 Environmental constraints.
 Organizational leadership.
 Interdependence of subsystem.
 Organizational structure.

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Process of Performance Appraisal
Establishing of performance appraisal.
Communicating standard to employees.
Evaluating actual Performance.
Comparing actual with standard.
Discussing appraisal with employees.
Taking corrective action
1. Establishing Performance standard: Performance standards,
which reflect the performance dimension from the basis of making appraisal.
Job analysis and Job description technique can be used to determine
performance dimension so that all critical elements of job could be
identified, deficiency and contamination can be avoided.
2. Communicating standard to employees: Employees should
be aware, what is expected of them. Performance standard should be
communicated completely and effectively to them. Manager should obtain
feedback from employees in order to ensure that they properly understand
performance requirements.

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3. Evaluating actual performance: Common source of collecting
information about actual performance are- personal observation, written
report, oral report and static report
4. Comparing actual standard: Actual performance achieved should
be compare with the standard in order to know the deviation, if any.
5. Discussing appraisal with employees: Post appraisal
discussion is aimed to improve employee’s performance and productivity.
Therefore manager has challenging task of presenting an accurate appraisal
to the employees.
6. Taking corrective action: After correcting the actual performance
with standards and discovering that real cause of substandard performance,
discussion with employees, manager can take any of the following courses of
action---
 Do nothing.
 Remove real cause of variation.
 Revise the standards.

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Appraisal Methods-
Performance Appraisal Technique:
(1)Individual evaluation (2) Multiple-person

(3)Other Methods
Methods Evaluation Methods
-Confidential Report -Ranking -Performance Test
-Essay evaluation -Paired Comparison -Field Review
-Critical Incidents -Forced Distribution techniques
-Checklists
-Graphic Rating Scale
-BARS
-Forced choice method
-Management By Objective (MBO)
Here are some key steps management can take towards achieving effective
performance appraisal—one of that can be used to validate the selection process as
well as to make decisions about pay or promotions:
1. Select what performance data to collect
2. Determine who conducts the appraisal
3. Decide on a rating philosophy

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4. Overcome rating deficiencies
5. Create a rating instrument
6. Deliver useful information to employees.
Approaches to Performance Management-
The traditional approach: The one dimensional model
In this model job expectations are defined in terms of what results have to be
achieved. This model doesn't have a long term focus and can't be used for employee
development and career path planning.
A satisfactory performance implies doing a job effectively and efficiently, with a
minimum degree of employee -created disruptions. Employees are performing well
when they are productive. Yet productivity itself implies both concern for
effectiveness and efficiency. Effectiveness refers to goal accomplishment.
Efficiency evaluates the ratio of inputs consumed to outputs achieved.
There are basically three purposes to which performance appraisal can be put. First,
it can be used as a basis for reward allocations. Decisions as to whom get salary
increases, promotions, and other rewards are determined by their performance
evaluation. Second, these appraisals can be used for identifying areas where
development efforts are needed. Management needs to spot those individuals who
have specific skill or knowledge deficiencies.
The performance appraisal is a major tool for identifying these deficiencies. Finally,

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the performance appraisal can be used as a criterion against which selection devices
and development programs are validated.
Tools of Performance Appraisal
There are following tolls of performance appraisal-
(1) Work Study: Work study first of all sought to improve the way each task
was carried out so that the single best way could be define. Very often the next step
in this process was to measure the work content as a standard time for the
completion of the task. The standard time had two uses; first it was used in
production planning and control system to progress and cost work thought
manufacturing process. It was also used in incentives schemes designed to
encouraged individuals and groups of worker to improve their output by linking
time to increase in their earning. In practices, however the outcome of such scheme
tended to be increased earning without a corresponding increase in output.
(2) MBO (Management by Objectives): Although MBO also
recognized the possible motivational effect on people at work of knowing what they
were required to do; it was based on a rational approach to organization, their
structures, their operations and objectives. In essence it was systematic approaches

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to let the people know what was requirement; initially the approach was widely
welcomed as a practical solution to the challenges of performance management.
(3) Critical Path Analysis: This was once seen as the answer to all the
problem of managing large and complex project was often incompatible with the
discipline required of the technique and short cuts, unforeseen problems and delay
in keeping the plans up to date meant that the plan was not an adequate guide the
validity and acceptability of techniques was thus undermined.
(4) Merit Rating: Merit rating sought to motivate people to higher standard of
performance through financial recognition, there is no little or no evidence that it
ever achieved its goal, probably because of the tenuous connections between the
criteria against which people were rated and actual performance in the job.
(5) Quality Circle: These were intended to raise organization performance
through the involvement of employees in the improvement of work process and
product quality. But employee’s involvement initiatives such as these were often
applied in the alien environment of traditional command and control organizations.
Furthermore many companies failed to realize that the talent of their people could be
fully harness to their glass of quality or performance improvement only if they work
process to match new situation. To often innovative perhaps unconventional ideas
became submerged in formal procedure and process for making.

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Legal Aspects of Performance Appraisal
Performance Appraisal plays a significant role in administrative decision related to
promotion, demotion increase in pay and dismissals. Employees adversely affected
by these decisions challenge their appraisal in court of low. The following
guidelines will be useful -
 Appraisal should be based on job related criteria.
 Employees should be told in advance what performance is expected from
them and how it will be evaluated.
 As far as possible, appraisal should be behavior oriented rather than trait
oriented.
 Appraisal should have adequate knowledge of performance of employees.
 In order to insure consistency appraisers should be well trained.
 Appraisal should be documented.
 In order to insure consistency appraisers should be well trained.
 Appraisal should be documented.
 There should be provision for review of appraisal recorded by an appraiser.
 Where appraisal contains adverse comments, these comments along with the
substance of entire appraisal should be communicated to the employees.
 Whenever there are complaints against an employees and these form the
subject matter of a disciplinary action, appraise should desist from recording

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any adverse comments concerning the subject matter till the disciplinary
action is over.

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Problems/errors in performance Appraisal
The personal judgment is always subject to personal bias as well as pressure form
certain areas. The appraiser may not able to judge the competence of employees.
Certain errors were as follow---
1. Halo error: Halo error refers to failure to distinguish among different
aspect of performance. Hallo error occur when one positive performance
aspect causes the rater to rate all other aspect of performance positively.
2. Similar to me: In this error occurs when we judge those who are
similar to us more highly than those who are not. This effect is strong when
similarity is based on demographic characteristics such as age or sex. It
result is discriminating decision.
3. Contract error: Contract error occurs when we compare individual
with one another instead of against an objective standard. If the competent
employee receives lower than deserved rating because of his or her
outstanding colleagues.
4. Central tendency: This error occurs when the rater is in doubt about
the subordinates or their inadequate information about them or is giving less
attention. If the rater does not have sufficient time to devote to the rating
process, he may play it safe by giving all employees “average”
5. Leniency: This error occurs when the appraise assign high rating to all
employees.

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6. Strictness: This error occurs when appraise assign low rate rating to all
employees.
7. Recent Behavior Bias: Some rater evaluates person on the basis of
their performance in recent few weeks; average constant behavior is not
checked.
8. Miscellaneous Biases: Rater may give higher rating because he
thinks that it will look bad if other employees in the other department receive
higher pay increase than his group. Supervisor will trend to rate their
Subordinate average rating.

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Drawback of Performance Appraisal
 Too many objective cause confusion.
 Consider time gap exist between two program.
 Lack of communication keeps employees in dark about what is expected
of them.
 Feed back on the appraisal is generally unpleasant of both superior and
subordinate.
 If the factors in assessment is irrelevant, the will not
 Different qualities to be rated may to given proper weight age.
 Supervisor should not have critical ability in assessing the staff.
 Personal judgment may be biased.

Page 8
Objective of Study
The objective of study was the study the performance appraisal system in power GTL
Limited, Lucknow and studying the perception of employees with respect to the existing
performance appraisal system.
To prepare the employee both new and old to meet the present as well as the changing
requirements of the job and the organization.
To prevent obsolesce.
To impact the new entrance the basic knowledge and skills need for an intelligent
performance of definite job.
To prepare employee for his/her level tasks.
To assist employees to function more effectively in their present position by exposing then
to the latest concepts, information and techniques and developing the skills they all need
for their particular fields.

Page 8
Research Methodology
Definition of Research-
“A systematic search for knowledge”
“Movement from known to unknown”.
Research methodology is a systematic way, which consists of series of action or

steps necessary to effectively carry out research and the desired sequencing of these
steps. The marketing research is a process of involves a number of interrelated
activities which overlap and do rigidly follow a particular sequence. It consists of
the following steps.
1. Formulating the objectives of the study
2. Designing the methods of data collection
3. Selecting sample plan
4. Collecting the data
5. Processing and analyzing the data
6. Reporting the findings
RESEARECH DESIGN: - Exploratory Design
SAMPLING UNIT: - A sampling framework i.e. developed for the target

population
that will be sampled i.e. who is to be surveyed –

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• Employees of GTL Ltd Lucknow.
SAMPLE SIZE: - 50
Performance Appraisal System in GTL

Limited
In GTL Limited, Lucknow they have the system of performance appraisal of their
employees. The main objective of this performance appraisal system is to
evaluate the performance, promote their employees and to arrange for their
various training programmes if they require for enhancing their skills in their
respective areas and in contribution enhancement.
GTL uses very constructive performance appraisal process while evaluating its
employees.
Its evaluation is based on quantitative wise and objective wise. Company set
goals to its employee by properly reporting with its employees and then
evaluating them up to what extent it has been achieved and if there is failure in
reaching the target what are the causes or reasons behind it.
Every evaluator has his or her own value system which acts as a standard against
which appraisals are made. Relative to the true or actual performance an individual
exhibits some evaluator mark high and others low. The former is referred to as
positive leniency error and the latter as negative leniency error. When evaluators
are positively lenient in their appraisal, an individual's performance becomes over-

Page 8
stated; that is, rated higher than it actually should. Similarly, a negative leniency
error understates performance, giving the individual a lower appraisal.
As such there is no scope of error as far as the GTL Limited is concerned, but
sometimes over estimation of target brings
about a description in the evaluating criteria. Thus, though chances are less, positive
leniency errors have been stated to be committed.
There are two types of employees in GTL
Limited, Lucknow…………
1st – Management Level
2nd – Technical Level
GTL Ltd use Appraisal through MBO at Management Level and 360 Degree
Appraisal at Technical Level.
For management level, top management sets organizational goals and they
define there targets and after three weeks they review there performance against
there target and give there feedback.
In GTL Ltd, for technical level GTL uses 360 degree appraisal system because
top management says that in these technique employees finds him/her very

Page 8
much secure because they says that in this system they evaluated persons who
are working with him/her.
Outcome of Performance Appraisal
As far as GTL Limited is concerned, there are four outcomes
possible:
a. Outstanding - If the performance evaluated by the management turns
out to be outstanding. If the employee performs in such a way as to collect 3
consecutive outstanding performances into his/her credit) he / she get
promoted.
b. Excellent -If the performance evaluated by the management turns out to
be excellent. If the employee performs in such a way as to collect 3
consecutive excellent performances into his/her credit, he/she gets dry
promotion.
c. Good -If the performance evaluated by the management turns out to be
good. The management sends the employee to the training programme to
improve his/her skill to perform in such a manner.
d. Bellow average -If the performance evaluated by the management
turns out to be bellow average. And, if the employee collects 3 below
average to his/her credit, then he/she dismissed.

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Duration of Appraisal System
The time constraints enables the employee to show or project his/her capabilities in
term of performance as per the duration allowed. In GTL limited, the performance
appraisal system is carried out annually.
Feedback
The company provides the annual feedback to its employees and thus, in term
brings out the highlights of the self assessment programme. This enables the better
communication between the management and employees and thus, helps in
promoting the business future.
Response
There are mixed responses from the feedback by the employees. It has helped some
of the employees in motivating themselves while those who felt bad were

Page 8
thoroughly communicated and all the confusion and failure part were discussed
with employees.
Research Objective
The purpose of research is to discover answers to question through the application

of scientific procedure. The main aim of research is to find out the truth which is
hidden and which has not been discovered as yet. Though each research study has
its own specific purpose.
The research objective of the my project was-
To measure the Performance Appraisal System in GTL Limited
 To check weather employees are satisfied with current Performance

Appraisal system.
 To check the need of Training.
 To measure the effectiveness of Organization’s functioning.

Page 8
Graphical Representation & Interpretation
1. In this study 71% is Executive and 29% is Non-Executive.
Non-
Executive
29%
Executive
71%
Executive Non-Executive

Page 8
2. About 47% of the employees were very highly aware of existing Performance
Appraisal System in GTL Limited.
Average
21%
Very High
47%
Quite High
32%
Very High Quite High Average

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3. According to 64% of employee are in favor of Performance
Appraisal should be done annually.
Quartely
12%
Half yearly
24%
Annually
64%
Annually Half yearly Quartely

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4. According to 72% employee’s immediate supervisor should do
appraisal.
Immediate
Supervisor
28%
Higher
Manager
72%
Higher Manager Immediate Supervisor

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5. According to 80% employees appraise participation in existing
Appraisal system is semi-open.
Non -
Open Existing
6% 14%
Semi-open
80%
Non Existing Semi-open Op en

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6. About 41% of the employees say that openness in the
Performance Appraisal system is quite high and average.
Quite Low Very High

6% 12%
Average
41%
Quite High
41%
Very High Quite High Average Quite L ow

Page 8
7. About 59% of the employees say that link between annual
appraisals and
development program is average.
Very High
29%
Average
59% Quite High
12%
Very High Quite High Average

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8. According to 58% of employees the ability of current review
system to reflect
their real assessment is quite high.
Very High
12%
Avarage
Quite High
30%
58%
Quite High Avarage Very High

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9. Acc
ording to 45% of the employees the possibility of unbiased
assessment of their performance to that of colleague is quite high.
Very Low Very High

6% 10%
Average
39% Quite High
45%
Very High Quite High Average Very Low

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10. According to 50% of the employees help provided by superior
is quite high.
Average
30%
Quite High
50%
Very High
20%
Quite High Very High Average

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11. About 41% of the employees say that guidance for the future
Performance on the basis of past year’s performance is very high.
Quite Low
10%
Average Very High
20% 41%
Quite High
29%
Very High Quite High Average Quite Low
12. According to 53% of the employee training input provided to

appraise is average.
Quite Low
Very Low 6%
6% Quite High
35%
Average
53%
Quite High Average Very Low Quite Low

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13. According to 70% employees the frequency of training program
for career development is average.
Very High
22%
Average
8%
Quite High
70%
Quite High Average Very High

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14. About 50% of the employees say that the extent of opportunity
provided to them for the development of their knowledge and skills
is average.
Quite Low
Very High 6%
5%
Quite High
39%
Average
50%
Quite High Average Very High Quite Low

Page 8
15. 34% of employee says that their satisfaction with the appraisal
system is very high.
Quite High
Quite Low 34%
47%
Average
19%
Quite High Average Quite High

Page 8
16. Respondents were asked whether the promotion is well defined
in the organization. The responses are given below:
Can't say
29%
Yes
17%
No
54%
1 2 3

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17. Respondents were asked about the present system, does it help
in aligning individual goal with those of the organization. The
responses were as given below:
No
12%
Yes
46%
Can't Say
38%
No
Responses
4%
1 2 3 4 5

Page 8
18. Respondents were asked about the frequency of feedback
based on their performance. The responses were as given below:
Often
Sometimes 9% Rarely
25% 25%
On few
Occasion
41%
1 2 3 4

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19. Respondents were asked weather the promotion policy is
linked with the performance appraisal system? The responses were
given bellow-
Can't Say
15%
No Yes
29% 56%
1 2 3

Page 8
Conclusion.
By this study I come to knew that my Hypothesis that “All employees are
satisfied with current Performance appraisal System” was not absolutely right
because only 55% employees were satisfied .There were approx.45% employees
who were not satisfied with the present Performance Appraisal System. They
want some changes to it.
Performance Appraisal is the definite guide for today’s competitive businesses
enterprise. It is yardstick that would measure the contribution of an organization.
Improved measurement of human resources plays a vital role in linking human
resource initiative to business strategies for significantly increasing the values.
Values and belief that are present in Performance Appraisal System/It should be
communicated right from day on through books, handouts. Time should be spent on

Page 8
future aspect rather than past by preparing carefully selected defined recorded
targets.
Targets should be challenging as well as achievable goals, which are beyond the
scope of employees should be selected. Goals, which are mess with group goals and
organizational goals, should be selected. Employees should be in position to
influence the outcomes.
Performance Appraisal is not mere a sharpening of pencil, filling of form etc. it is
time to develop Performance Appraisal Program and scrap the irritating annual
appraisal, irrational rating and irrational forms. Performance appraisal will create a
Competitive advantage and evolve the very nature of the game itself.
The analysis and interpretation of data on study of performance appraisal and its
effectiveness in an organization led to the following conclusions:
• The promotion rules though defined need to be communicated to every
employee before Appraisal process is done and also justifies the promotion as a
result of the appraisal. That the promotion policy followed differs at different
position and category. Uniformity has to be there in the implementation of

Page 8
promotion policy at all levels.
• The process of performance appraisal followed in GTL Limited at the
supervisory and above level is to say not well but of satisfactory level.
• The appraisal outcome has to be used frequently for the purpose of reward on
performing well together with the feedback on the performance. Also when
performance goes down employee has to be given feedback and motivated to do
better.
• The organization at present doesn't led career planning and career succession
plans.
• In GTL Limited feedback is being provided to the employee though on a few
occasion.
• Performance appraisal in GTL Limited is done on an annual basis.
• More emphasis on training and job rotation as remedial measures.
• The mechanism of counseling pre-performance and post performance is not in
practice at the organization in strict term. During the course of study suggestion
came from the employee side for the need of counseling.

Page 8
Recommendation &
Feedback
There are following recommendation for Performance
Appraisal
 It is recommended that periodicity of the assessment should be twice in a
year. Once it can be in the month of March for wages and salary purpose and

Page 8
other can be in the month of October/November for Training and
development purpose.
 It is recommended that performance appraisal from contain to be answer
bout the various jobs. The appraise have to perform.
 Effective performance appraisal system developed upon how well the data is
analysis and interpretive so that it can used for various purpose, e.g.
development as well as personnel management system.
 Every employee may not have all capacity that requires performing each and
every function associated with role. In fact every employee need training to
improve his/her performance or to gain knowledge to get competitive
advantage
Therefore performance appraisal system should be able to indicate the capacity of
each employee that they have or lacks in performing their role.
Time-to-time training and development program is must in order to develop
employees, their skills and knowledge.
In fact over development of employee so that they feel, they not only giving their
efforts to the company but also company is giving something to them as they are
real assets of the company.
Feedback

Page 8
Performance appraisal system without feedback is like ad body without should and
human eyes without vision. Feedback is must. If the superior does not give feedback
to his subordinate, he cannot guide himself. Since feedback system is lacking in
GTL which is very important as such it is recommended that feedback employee
will never came to know in which area he needs to improve and work hard, what are
the/drawbacks in his performance?
Feedback is very necessary not only from the point of view of improving he
performance but also for mutual understanding and relationship of superior and
subordinate and also to motivate appraise.
Feedback should given such a way that appraise should not feel shame/disregarded.
Discuss his weak ness with him in front of everyone. So that he will be motivate and
other who sees will also influence and try to hard work.
If there is no feedback in Performance Appraisal System then it will create
confusion among superior and subordinate.
Subordinate would not know what his superior thinks of him. This will lead to
communication gap and further lead to conflicts.
In order to avoid such type to critical situation and to develop team sprit, to motivate
employees, feedback is necessary tool in Performance Appraisal System. Giving and
receiving feedback is a skill, as such people who will be involved in giving feedback
should be given proper training.

Page 8
Some important points on giving feedback;
 Be concrete:-Discuss specific behavior and example to illustrate and
support the points being made.
 Be respectful:- Try to communicate acceptance
 Identify both positive and negative points of performance.
 Be constructive: - Offer suggestion as how the situation might
have been tackled differently and how problem might be tackled in future.
 Do not try to make many critical points.
 Make sure that your judgment are identified as such and not presented as
fact.
Findings

Page 8
 Training the Appraise: It is proposed that appraiser be trained for clear
understanding of the system and its objective and also counseled to be honest, fair,
just, unbiased in appraising the appraise.
 Factors/traits of evaluation: It is proposed that appraise evaluated on above
factors/traits be given suitable remark or justification for being given different
quantitative grade.
 Greater clarity has to be has to there in terms of job responsibility. This is
possible when the appraisal is done on the basis of the description.
 In the organization, performance appraisal is done on an annual basis which
should be done Quarterly to make it more effective.
 Consistency is demanded in the promotional policy. It should not change
every year.
 Monetary difference between two grades should not be large, it should be
motivating in nature.
 Performance appraisal system should be made more transparent and
rationale.
 Performance feedback: The performance feedback sessions should be
improved which would results in increasing employee motivation to improve
performance. The following could be incorporated.
 Pin point the problem behavior and make sure the employee is aware of it
 Make sure the employee understands the consequences of the problem
behavior. Get employee's commitment to change and make sure he cares about the

Page 8
change
 Assistance should be provided to improve poor performance. Make a
realistic plan appropriate to the behavior and set a time frame for improvement.
 To make sure to review performance time to time
 The other change which has to be incorporated at the supervisor and the
level above are:
 These should be listing down of task undertaken during the last one year
and the result achieved.
 In some areas of performance there should be self appraisal and more and
more counseling so that employee improves upon weak area and understands what
is expected of him/her at the organization level.
 Based on the above an open appraisal system is suggested.
In an open appraisal the employee would come together to set the targets, to
understand the mutual expectations and support to be provided by the Appraiser to
the employee for achieving mutually accepted goals/targets. Through this process
of setting targets the interpersonal relationship between the appraiser and the
employee would improve.
The open appraisal system reduces the whims and fancies of the appraiser. It
promotes result-orientation as it is based on performance rather than on personality

Page 8
based appraisal
Questionnaire
(The information given below will be kept confidential. Data will be
used for marking the project report)
Designation:
Please tick any one of five degree the correctly represents your
view about the statement given below;
1. Are you fully aware of the appraisal system followed in
GTL Limited?
Very high Quite high
Average Quite low
Very low
2. My satisfaction with the appraisal system is-

Page 8
Average Quite low
Very low

Page 8
3. How often should the performance review be conducted?
Annually Half yearly
Quarterly
4. Who should appraise?
Higher manager Immediate supervisor
5. How much appraise participation exist in present
appraisal system?
Average Quite low
Very low
6. The objectivity and openness in the performance review
system is:-
Average Quite low
Very low

Page 8
7. The link between annual appraisal and the development
of new or better job related qualities and skills for me are:
Average Quite low
Very low
8. The ability of current appraisal system to reflect my
superior’s real assessment for me
Average Quite low
Very low
9. The possibility of unbiased assessment of my
performance relative to my colleagues is:
Average Quite low
Very low

Page 8
10. The help provided by superiors is:
Average Quite low
Very low
11. The degree of mutual understanding in my work
relationship with my superiors is:
Average Quite low
Very low
12. The extent of effort of details and guidance on the basis
of past years appraisal system is:
Average Quite low
Very low
13. The training inputs provided to the superiors and
subordinates in relation to the performance review system
are:
Average Quite low
Very low

Page 8
14. The frequency of training programs for career
development is:
Average Quite low
Very low
15. The extent of opportunities provided to me for my
development is:
Average Quite low
Very low
16. The provision of making appeals against appraisals to
ensure confidence of employees is:
Average Quite low
Very low

Page 8
17. Should the promotion policy is linked with the
performance appraisal system?
Yes No
Can’t say No response
18. Whether the promotion is well defined in the organization or
not?
Yes No
19. Does the present system help in aligning individual goal with
those of the organization?
Yes No
20. What should be the frequency of feedback based on their
performance?
Often Sometimes
Rarely Only on few occasion

Page 8
Bibliography
Marketing Management – Philip Kotler
Research Methodology – C.R. Kothari
www.gtllimited.com
www.google.com
Other Sources of Information-wikipedia encyclopedia

Page 8

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Submitted For Partial Fulfillment of the

Prof.P.K. Aggarwal Mr.

IIMT Professional College, Meerut

I hereby declare that the project entitled “Performance Appraisal in GTL

report presented has not been published anywhere else.

Place Ravi Shukla

IIMT Professional College, Meerut

It is great opportunity for me to convey my heartily regards to those who helped

me to make this report purposeful.

First of all I would like to convey my never ending gratitude towards my

behavior. I wouldn’t like to miss an opportunity to thank all my Faculty

seniors, Friends, Colleagues and other people who helped me to make my

Finally I would like to express my deep sense of gratitude and indebtedness to

never-ending support and love.

one can hope that it will enjoy a longer.”

IIMT Professional College, Meerut

today’s fast developing world, this has been modified.

I undertook summer training program in GTL Limited, Lucknow, as an essential and

obligatory part of Post Graduate Diploma in Management of IIMT Professional

influence the employee’s performance. . The cause behind the failure of an

organization is many & multidimensional. Employee’s lack of motivation & moral

knowledge in practical relevance and measure the performance of employees.

The summer training was s interesting, inspiring, satisfying, learning and

IIMT Professional College, Meerut

Technique of performance Appraisal

 Purpose of Performance Appraisal

IIMT Professional College, Meerut

The company’s services are widely used by WiMAX,

IIMT Professional College, Meerut

To be the world’s largest “ Network Services

To establish technology partnerships with end users and Original Equipment

Manufacturer (OEM) organizations on a global basis, to deliver the highest quality

and most cost-effective network services solutions.

Our Core Values

• Integrity proactively manage change

• Delight customers through superior services

• Develop entrepreneurs through an achievement -oriented culture

IIMT Professional College, Meerut

• Share knowledge and focus on end-result

GTL Limited, a Global Group Enterprise, is a leading Network Services company,

Telecom Carriers and Technology providers (OEMs). GTL’s consolidated

professionals by FY 2011. The Group has Operations across 46 countries, employs

IIMT Professional College, Meerut

WiMAX to IPTV, Global Group provides complete life-cycle solutions around

Deployment, Network Operations and Maintenance, Infrastructure Management,

Energy Management and Professional services.

IIMT Professional College, Meerut

GTL Tele-Systems, a private limited company was incorporated. GTL Telecom a

GTL plans to develop pan-India distribution network and established 3 offices.

IIMT Professional College, Meerut

The company completes commissioning of the largest private nationwide data

The company plans to cease its product businesses

The company develops B2B service applications – GTL E-enterprise – an Enterprise

IIMT Professional College, Meerut

GTL acquired UK Based Genesis Consultancy. Listing of GTL Infrastructure, a spin

IIMT Professional College, Meerut

• GTL has received Golden Peacock Global Award for

Company Name – GTL Limited

Company Type - Global Network Services Provider Company

Date of Establishment - November 2, 1987

Chairman, President and CEO - Tirodkar, Manoj G.

Employee Strength – Total - 7,066 (As on March 2010)