Analysing Performance Appraisal in Iffco-Tokio General Insurance Company Limited

Presented By:ANKITA RATHOR (51)

Company Profile
IFFCO-Tokio General Insurance (ITGI) Company is a cooperative undertaking by the Indian Farmers Fertilizer Co-operative (IFFCO) and its associate and Tokio Marine and Nichido Fire. It has 51 Strategic Business Units and 110 offices all over India. It has its head office at Gurgaon, Haryana. Indian Farmers Fertilizers Co-operative Ltd. (IFFCO) is well known as a pioneer in large scale fertilizer manufacturing and is a leading fertilizer producer in the country. It has manufacturing plant at Kalol, Kandla, Phulpur and Aonla. The company has Commercial Lines, Retail lines and Specialty Lines.
Commercial Lines Boiler & Pressure Plant Retail Lines Motor Private Specialty Lines Fine Art Insurance - Art Dealers & Gallery Owners Aviation Insurance Policy

Industrial All Risks

Car Motor Cycle/Scooter Home & Family Protector Home Suvidha

Marine Cargo Workmen's Compensation

Sagar Bandhu Bima Policy Barish Bima Yojna (Weather Insurance) Jewelers Block

Contractors Plant & Machine

Individual Medishield

What is Performance Appraisal?

Performance appraisal means systematic evaluation of the personality and performance of each employee by his supervisor or some other person trained in the techniques of merit rating. Performance appraisal includes all formal procedures used to evaluate personalities, contribution and potential of group members in a working organization.

   

Purpose of Performance Appraisal

Promotions Transfers Wage and Salary Administration Training and Development

Designing an Appraisal Programme

Determining the Objective of performance Appraisal:- The objective of the appraisal programme is to appraise the actual performance of individuals for higher jobs. Sometimes, performance appraisal programmes are associated with specific objectives like training and development, transfer and promotion, increase in pay, etc. Establishing Standards of Performance:- For effective rating of employees, it is necessary to establish standard on performance against which their performance should be compared. Who is to do the Appraisal:- Generally, the appraiser is the immediate superior of the man to be appraised. He is most familiar with the employees work and is in contact with him and so he is considered to be able to appraise him well

Frequency of Appraisal:- The frequency of appraisal differs from organization and with the nature of duties performed. There are not spot appraisals, monthly, quarterly, and six monthly or yearly appraisals. But most of the organizations conduct yearly or half yearly appraisals because more frequent appraisals besides taking away time of the appraiser Designing of Form:- The forms should be related to job families such as clerical, mechanical, sales, technical and supervisory.

How Performance Appraisal is done in Iffco-Tokio General Insurance Company

In Iffco-Tokio performance appraisal process starts in the month of April. In this process, goal sheet is given to each employee in which all employees have to fill their KRAs (Key Result Areas). Each Employee has to define atleast 3 KRAs. Each goal/ KRA is given weightage. Each KRA is rated on the scale of 1 - 4. 1 marks - did not meet expectations 2 marks met some expectations 3 marks consistently met expectations 4 marks surpassed all expectations Next Year in the month of March, Employees rate themselves.Then the appraiser rates the employees by observing his performance and the marks given by employee to himself. Then this same goal sheet is submitted to the accepting officer who analyses the marks given by the appraiser and by the employee to himself. Then accepting officer finally give grades to the employee. And this grade plays an important role in the promotion of the employee. If an employee gets two times C grade and one time B grade then he is not eligible for the promotion.

Objectives of Study

To study management by objective as a performance appraisal tool at Iffco Tokio General Insurance Company. To understand the opinion of employees towards performance appraisal at Iffco Tokio General Insurance Company. To identify the effect of performance appraisal on individual development at Iffco Tokio General Insurance Company.

Research Methodology
Research Design
Descriptive and quantitative research is adopted for this study. Descriptive research describes data and characteristics about the population being studied. Descriptive research answers the question who, what, where, when and how. A descriptive research design was used to study the sample and draw inference about the population. Quantitative research has a goal of formulating problems more precisely, clarifying concepts, gathering explanation, and forming hypothesis.

Sampling
Sample size Sampling technique Sample Area 50 employees of H.R. Department Purposive sampling Corporate Office of Iffco Tokio General Insurance Company

Tools
A semi-structured questionnaire comprising of close ended questions was designed. The questions framed were direct, simple, less time consuming. The questions were structured in such a format so that it was easy to comprehend, analyze and interpret.

Data Collection
Primary data: - Primary data is the data collected specially for a specific purpose. The methods used for its collection are personal discussion & questionnaire etc. The method used in collecting primary data in my research was questionnaire. In this I asked a set of predetermined questions in a predefined order, the answers given by the respondents were used to fill up the questionnaire. Secondary data: Secondary data consists of information that already exists somewhere and was collected for another purpose, which may not be the same as the purpose of research. Secondary data used here was the Performa of performance appraisal used in IFFCO TOKIO.

Result Findings
Majority (60%) of respondents are male. Most of the respondents (32%) belong to the age group of 31-40. 54% of the respondents have above 5 to 10 years of work experience. All of the respondents have undergone performance appraisal program once in a year. 100% of the employees interpret the reason for conducting performance appraisal includes all the factors such as to identify motivating methods, to decide monetary benefits and identify barriers for performance. 84% of employees responded that good relationship with the appraiser affects performance appraisal. 4% respondents said that no meeting is scheduled for discussion of their performance appraisal. Most (72%) replied that twice in a year the meeting is scheduled for employees to discuss their performance. All respondents mostly share their opinion and suggestions freely during the performance appraisal. 88% respondents feel the superior provides informal feedbacks for performance improvement. Majority (90%) of the respondents feel that performance appraisal is important to the organization.

Respondents feel that the top management is highly supportive towards the performance appraisal system. (inferred using sign testing). Respondents agree that performance appraisal helps to identify employees potential for advancement .(inferred using sign testing). Respondents agree that performance appraisal system encourages to put more effort in reaching goals. (inferred using sign testing). 46% of the respondents are determined to perform better when negative points are discussed and only 26% of the respondents feel comfortable in discussing their problems with their appraises.

Conclusion

The performance is being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgement, versatility. It also helps in the development of the strengths & identifying the weakness of the employees, and giving training to them so that they can overcome their weakness. Top management is highly supportive towards the performance appraisal system. Performance appraisal system also encourages to put more effort in reaching goals. performance appraisal is able to identify employees potential and find the motivating factors of employees, to decide upon monetary benefits and identifying their barriers to performance. People having least domain knowledge are given training so that they can perform their jobs effectively

Recommendations

Suggestion could be obtained from employees regarding framing the performance appraisal system. Employees suggestion during performance appraisal may not reach the top managers. For such situations suggestion box can be implemented and frequently reviewed. Appropriate and experienced appraiser can be appointed for effective performance appraisal. Employees having low performance could be called individually, encouraged and monitored closely to make improvements. Appraisal feedback is very important in any performance appraisal program. It could be carefully communicated by making high performers increase their target and low performers to build up their confidence.

Limitations

Study is done by using small sample size. Goal sheet forms were not available for the study. All department in the organisation are not covered in the study.

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