PREFORMANCE APPRAISAL For Telecom Industry- IPTV Division

SUMMER TRAINING PROJECT REPORT

Under the Guidance of:

Report submitted to Saraswati Group Of Institutions

as a part of full time MBA

Submitted to: Submitted by:

SHALLU MAM RUCHITA CHANDOLA
(LECTURER)

PREFACE
Managing human resources in today’s dynamic environment is becoming more and more
complex as well as important. Recognition of people as a valuable resource in the
organization has led to increases trends in employee maintenance, job security, etc

My research project deals with “Performance Appraisal as carried out at Aksh Optifibre
Limited”. In this report, I have studied &evaluated the performance appraisal process as it
is carried out in the company.

The first section of my report deals with a detailed company profile. It includes the
company’s history: its activities and operations, organizational structure, etc. this section
attempts to give detailed information about the company and the nature of it’s functioning.

The second section deals with performance appraisal. In this section, I have given a brief
conceptual explanation to performance appraisal. It contains the definition, process and
significance of performance appraisal.

In the third section of my report, I have conducted a research study to evaluate the process
of performance appraisal at Aksh Optifibre Limited ; this section also contains my
findings, conclusions, suggestions and feedback.

The forth and final section of this report consists of extra information that I related to the
main contents of the report. These annexure include some graphs and diagrams relating to
the company, graphs relating to the research study and important documents upon which
the project is based.

ACKNOWLEDGEMENT
This project report is the culmination of the efforts over six week’s period from ………. to
……... During the course of this project I have had the privilege to work with many
distinguished people and the opportunity to learn many things from them

I would like to express my sincere gratitude to my mentor Ms. Shallu. Her guidance
and advice proposed ideas and constructive suggestions at the technological as well as in
the marketing front towards the result-oriented approach for the completion of this project.

Ruchita Chandola
(Saraswati Group of Institutions)

INTRODUCTION OF HRM
Human Resource (or personnel) management, in the sense of getting things done through
people, is an essential part of every manager’s responsibility, but many organizations find
it advantageous to establish a specialist division to provide an expert service dedicated to
ensuring that the human resource function is performed efficiently.

“People are our most valuable asset” is a cliché, which no member of any senior
management team would disagree with. Yet, the reality for many organizations are that
their people remain under valued, under trained and under utilized.

The market place for talented, skilled people is competitive and expensive. Taking on new
staff can be disruptive to existing employees. Also, it takes time to develop ‘cultural
awareness’, product / process / organization knowledge and experience for new staff
members.

Functions of Human Resource Management

Following are the various functions of Human Resource Management that are essential
for the effective functioning of the organization:

1. Recruitment

2. Selection

3. Induction

4. Performance Appraisal

5. Training & Development

Recruitment

The process of recruitment begins after manpower requirements are determined in

terms of quality through job analysis and quantity through forecasting and planning.

Selection

The selection is the process of ascertaining whether or not candidates possess the
requisite qualifications, training and experience required.

Induction
 a) Induction is the technique by which a new employee is rehabilitated into the
changed surroundings and introduced to the practices, policies and purposes of the
organization.

WHAT IS “Performance Appraisal”?

Performance Appraisal is defined as the process of assessing the performance and

progress of an employee or a group of employees on a given job and his / their
potential for future development. It consists of all formal procedures used in working
organizations and potential of employees. According to Flippo, “Performance
Appraisal is the systematic, periodic and an important rating of an employee’s
excellence in matters pertaining to his present job and his potential for a better job.”

CHARACTERISTICS

1. Performance Appraisal is a process.

2. It is the systematic examination of the strengths and weakness of an employee in

terms of his job.

3. It is scientific and objective study. Formal procedures are used in the study.

4. It is an ongoing and continuous process wherein the evaluations are arranged

periodically according to a definite plan.

5. The main purpose of Performance Appraisal is to secure information necessary

for making objective and correct decision an employee.

PROCESS

The process of performance appraisal:

1. Establishing performance standards

2. Communicating the Standards

3. Measuring Performance

4. Comparing the actual with the standards

5. Discussing the appraisal

6. Taking Corrective Action

LIMITATIONS
 1. Errors in Rating

2. Lack of reliability

3. Negative approach

4. Multiple objectives

5. Lack of knowledge

Methods of Performance appraisal

The foregoing list of major program pitfalls represents a formidable challenge, even
considering the available battery of appraisal techniques. But attempting to avoid these
pitfalls by doing away with appraisals themselves is like trying to solve the problems of
life by committing suicide. The more logical task is to identify those appraisal practices
that are (a) most likely to achieve a particular objective and (b) least vulnerable to the
obstacles already discussed.

Before relating the specific techniques to the goals of performance appraisal stated at the
outset of the article, I shall briefly review each, taking them more or less in an order of
increasing complexity.

The best-known techniques will be treated most briefly.

ESSAY APPRAISAL

In its simplest form, this technique asks the rater to write a paragraph or more covering an
individual's strengths, weaknesses, potential, and so on. In most selection situations,
particularly those involving professional, sales, or managerial positions, essay appraisals
from former employers, teachers, or associates carry significant weight.

GRAPHIC RATING SCALE

This technique may not yield the depth of an essay appraisal, but it is more consistent and
reliable. Typically, a graphic scale assesses a person on the quality and quantity of his
work (is he outstanding, above average, average, or unsatisfactory?) and on a variety of
other factors that vary with the job but usually include personal traits like reliability and
cooperation. It may also include specific performance items like oral and written
communication.

FIELD REVIEW

The field review is one of several techniques for doing this. A member of the personnel or
central administrative staff meets with small groups of raters from each supervisory unit
and goes over each employee's rating with them to (a) identify areas of inter-rater
disagreement, (b) help the group arrive at a consensus, and (c) determine that each rater
conceives the standards similarly. .

FORCED-CHOICE RATING

Like the field review, this technique was developed to reduce bias and establish objective
standards of comparison between individuals, but it does not involve the intervention of a
third party.

MANAGEMENT BY OBJECTIVES

To avoid, or to deal with, the feeling that they are being judged by unfairly high standards,
employees in some organizations are being asked to set - or help set - their own
performance goals. Within the past five or six years, MBO has become something of a fad
and is so familiar to most managers that I will not dwell on it here.

Ranking methods

For comparative purposes, particularly when it is necessary to compare people who work
for different supervisors, individual statements, ratings, or appraisal forms are not
particularly useful. Instead, it is necessary to recognize that comparisons involve an
overall subjective judgment to which a host of additional facts and impressions must
somehow be added. There is no single form or way to do this.

The best approach appears to be a ranking technique involving pooled judgment.

The two most effective methods are alternation ranking and paired comparison ranking.

1. “Alternation ranking”:

Ranking of employees from best to worst on a trait or traits is another method for
evaluating employees. Since it is usually easier to distinguish between the worst and the
best employees than to rank them, an alternation ranking method is most popular. Here
subordinates to be rated are listed and the names of those not well enough to rank are
crossed. Then on a form as shown below, the employee who is highest on the
characteristic being measured and the one who is the lowest are indicated. Then chose the
next highest and the next lowest, alternating between highest and lowest until all the
employees to be rated have been ranked.

2. “Paired-comparison ranking”:

This technique is probably just as accurate as alternation ranking and might be more so.
But with large numbers of employees it becomes extremely time consuming and
cumbersome.

Both ranking techniques, particularly when combined with multiple rankings (i.e., when
two or more people are asked to make independent rankings of the same work group and
their lists are averaged), are among the best available for generating valid order-of-merit
rankings for salary administration purposes.

ASSESSMENT CENTERS

So far, we have been talking about assessing past performance. What about the assessment
of future performance or potential? In any placement decision and even more so in
promotion decisions, some prediction of future performance is necessary. How can this
kind of prediction be made most validly and most fairly?

360 DEGREE FEEDBACK

Many firms have expanded the idea of upward feedback into what the call 360-degree
feedback. The feedback is generally used for training and development, rather than for pay
increases.

Most 360 Degree Feedback system contains several common features. Appropriate parties
– peers, supervisors, subordinates and customers, for instance – complete survey,
questionnaires on an individual. 360 degree feedback is also known as the multi-rater
feedback, whereby ratings are not given just by the next manager up in the organizational
hierarchy, but also by peers and subordinates. Appropriates customer ratings are also
included, along with the element of self appraisal. Once gathered in, the assessment from
the various quarters are compared with one another and the results communicated to the
manager concerned.

Another technique that is useful for coaching purposes is, of course, MBO. Like the
critical incident method, it focuses on actual behavior and actual results, which can be
discussed objectively and constructively, with little or no need for a supervisor to "play
God."

MANAGEMENT BY OBJECTIVES

It was Peter F. Drucker who first gave the concept of MBO to the world way back in
1954 when his The Practice of Management was first published. The MBO concept, as
was conceived by Drucker, reflects a management philosophy which values and utilizes
employee contributions. Application of MBO in the field of performance appraisal is a
recent thinking.
Four Steps in the MBO Process

How MBO works can be described in four steps:

The first step is to establish the goals each subordinate is to attain. In some
organisations, superiors and subordinates work together to establish goals. In others.
Superiors establish goals for subordinates. The goals typically refer to the desired
outcome to be achieved. These goals can then be used to evaluate employee performance.
The second step involves setting the performance standard for the subordinates in a
previously arranged time period. As subordinates perform, they know fairly well what
there is to do, what has been done, and what remains to be done.
In the third step, the actual level of goal attainment is compared with the goals agreed
upon. The evaluator explores reasons for the goals that were not met and for the goals
that were exceeded. This step helps determine possible training needs. It also alerts the
superior to conditions in the organization that may affect a subordinate but over which
the subordinate has no control.
The final step involves establishing new goals and, possibly new strategies for goals
not previously attained. At this point, subordinate and superior involvement in goalsetting
may change. Subordinates who successfully reach the established goals may be
allowed to participate more in the goal setting process the next time. The process is
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repeated. As with other approaches. MBO too has been criticised. One comment made
against the approach is that it is not applicable to all jobs in all organisations. Jobs with
little or no flexibility. Such as assembly-line work, are not compatible with MBO. An
assembly-line worker usually has so little job flexibility that the performance standards
and objectives are already determined. The MBO process seems to be most useful with
managerial personnel 'and employees who have a fairly wide range of flexibility and
selfcontrol
in their jobs. Besides, when the result of an MBO system are to be used to
allocate organisational rewards, employees may be less likely to establish challenging
goals-goals they are confident that they can accomplish. Further, the allocation of merit
pay on a semi-annual or annual basis may encourage the setting up of goals with short

time horizons to the disadvantage of important long-term

Advantages

Instead of assuming traits, the MBO method concentrates on actual outcomes. If the
employee meets or exceeds the set objectives, then he or she has demonstrated an
acceptable level of job performance. Employees are judged according to real outcomes,
and not on their potential for success, or on someone's subjective opinion of their abilities.
The guiding principle of the MBO approach is that direct results can be observed easily.
The MBO method recognizes the fact that it is difficult to neatly dissect all the complex
and varied elements that go to make up employee performance.

MBO advocates claim that the performance of employees cannot be broken up into so
many constituent parts, but to put all the parts together and the performance may be
directly observed and measured.
Disadvantages

This approach can lead to unrealistic expectations about what can and cannot be
reasonably accomplished. Supervisors and subordinates must have very good "reality
checking" skills to use MBO appraisal methods. They will need these skills during the
initial stage of objective setting, and for the purposes of self-auditing and self-monitoring.

Variable objectives may cause employee confusion. It is also possible that fluid objectives
may be distorted to disguise or justify failures in performance.

Benefits of Performance Appraisals

• Measures an employee’s performance.

• Helps in clarifying, defining, redefining priorities and objectives.
• Motivates the employee through achievement and feedback.
• Facilitates assessment and agreement of training needs.
• Helps in identification of personal strengths and weaknesses.
• Plays an important role in Personal career and succession planning.
• Clarifies team roles and facilitates team building.
• Plays major role in organizational training needs assessment and analysis.
• Improves understanding and relationship between the employee and the reporting
manager and also helps in resolving confusions and misunderstandings.
• Plays an important tool for communicating the organization’s philosophies, values,
aims, strategies, priorities, etc among its employees.
• Helps in counseling and feedback.

Rating Errors in Performance Appraisals

Performance appraisals are subject to a wide variety of inaccuracies and biases referred to
as 'rating errors'. These errors can seriously affect assessment results. Some of the most
common rating errors are: -
Leniency or severity: - Leniency or severity on the part of the rater makes the assessment
subjective. Subjective assessment defeats the very purpose of performance appraisal.
Ratings are lenient for the following reasons:

a) The rater may feel that anyone under his or her jurisdiction who is rated
unfavorably will reflect poorly on his or her own worthiness.

b) He/She may feel that a derogatory rating will be revealed to the rate to
detriment the relations between the rater and the ratee.

c) He/She may rate leniently in order to win promotions for the subordinates
and therefore, indirectly increase his/her hold over him.

Central tendency: - This occurs when employees are incorrectly rated near the average or
middle of the scale. The attitude of the rater is to play safe. This safe playing attitude
stems from certain doubts and anxieties, which the raters have been assessing the rates.

Halo error: - A halo error takes place when one aspect of an individual's performance
influences the evaluation of the entire performance of the individual. The halo error occurs
when an employee who works late constantly might be rated high on productivity and
quality of output as well ax on motivation. Similarly, an attractive or popular personality
might be given a high overall rating. Rating employees separately on each of the
performance measures and encouragingssssssss raters to guard against the halo effect are
the two ways to reduce the halo effect.

Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively high or
low score are given only to certain individuals or groups based on the rater's attitude
towards them and not on actual outcomes or behaviors; sex, age, race and friendship
biases are examples of this type of error.

Primacy and Regency effects: - The rater's rating is heavily influenced either by behavior
exhibited by the ratee during his early stage of the review period (primacy) or by the
outcomes, or behavior exhibited by the ratee near the end of the review period (regency).
For example, if a salesperson captures an important contract/sale just before the
completion of the appraisal, the timing of the incident may inflate his or her standing, even
though the overall performance of the sales person may not have been encouraging. One
way of guarding against such an error is to ask the rater to consider the composite
performance of the rate and not to be influenced by one incident or an achievement.
Performance dimension order: - Two or more dimensions on a performance instrument
follow each other and both describe or rotate to a similar quality. The rater rates the first
dimensions accurately and then rates the second dimension to the first because of the
proximity. If the dimensions had been arranged in a significantly different order, the
ratings might have been different.

Spillover effect: - This refers lo allowing past performance appraisal rating lo

unjustifiably influence current ratings. Past ratings, good or bad, result in similar rating for
current period although the demonstrated behavior docs not deserve the rating, good or
bad.

ROLES IN THE PERFORMANCE APPRAISAL PROCESS

a) Reporting Manager

Ø Provide feedback to the reviewer / HOD on the employees’

behavioral traits indicated in the PMS Policy Manual

Ø Ensures that employee is aware of the normalization / performance

appraisal process

Ø Address employee concerns / queries on performance rating, in

consultation with the reviewer

b) Reviewer (Reporting Manager’s Reporting Manager)

Ø Discuss with the reporting managers on the behavioral traits of all the
employees for whom he / she is the reviewer

Ø Where required, independently assess employees for the said

behavioral traits; such assessments might require collecting data
directly from other relevant employees

c) HOD (In some cases, a reviewer may not be a HOD)

Ø Presents the proposed Performance Rating for every employee of his /

her function to the Normalization committee.

Ø HOD also plays the role of a normalization committee member

 Ø Owns the performance rating of every employee in the department

d) HR Head

Ø Secretary to the normalization committee

Ø Assists HOD’s / Reporting Managers in communicating the

performance rating of all the employees

e) Normalization Committee

Ø Decides on the final bell curve for each function in the respective
Business Unit / Circle

Ø Reviews the performance ratings proposed by the HOD’s, specifically

on the upward / downward shift in ratings, to ensure an unbiased
relative ranking of employees on overall performance, and thus finalize
the performance rating of each employee

KEY CONCEPTS IN PMS

In order to understand the Performance Management System at BHARTI, some concepts

need to be explained which play a very important role in using the PMS successfully.
They are:

Ø KRA’S (KEY RESULT AREAS): The performance of an employee is largely

dependent on the KRA score achieved by the employee during that particular year.
Thus, it is necessary to answer a few basic questions i.e.

o What are the guidelines for setting the KRA’s for an employee?

o How does an employee write down his KRA’s for a particular financial
year?

o KRA’s: The Four Perspectives.

o How is the KRA score calculated for an employee on the basis of the
targets sets and targets achieved?

Ø BEHAVIORAL TRAITS: Some of the qualitative aspects of an employees’

performance combined with the general behavioral traits displayed by the
employee during a year constitutes his behavior traits. An employee is assigned the
 rating on the basis of the intensity of the behavior displayed by him. They play a
very important role in the deciding the final performance rating for an employee as
is even capable of shifting the rating one level upwards/downwards.

Ø BHARTI 2010 LEADERSHIP COMPETENCY FRAMEWORK: This

competency framework is a simple and structured way to describe the elements of
behaviors required to perform a role effectively. This framework also tries to
assess the performance of an employee objectively.

Ø THE PERFORMANCE RATING PROCESS: The rating process tries to

explain the four different types of rating that an employee can achieve i.e. EC, SC,
C and PC. It also explains the criteria, which is considered for awarding any of
these ratings to the employee.

Ø PROMOTION AND RATING DISRTRIBUTION GUIDELINES: The

promotion and normal distribution guidelines provide the framework within which
the performance appraisal process has to work. It is very important that the HR
department pays due attention to these guidelines while preparing the bell curves
for various functions and the consolidated bell curve for all the functions. These
guidelines also help in deciding upon the promotion cases in a year.

Performance Rating Process

EXCEPTIONAL CONTRIBUTOR (EC) SIGNIFICANT CONTRIBUTOR (SC)

· Performs consistently and · Performs above expectations in all

substantially above expectations in areas
all areas · Achieves final score between 100-
· Achieves a final score greater than 114%
or equal to 115%
• Versatile in his/ her area of operation
· Consistently delivers on stretch
• Develops creative solutions and
targets
require little / minimal supervision
· Is proactive • Sets examples for others
 • Take ownership of own development
· Spots and anticipates problems,
• Coaches others
implements solutions
• Demonstrates business initiative
· Sees and exploits opportunities
• Is self motivated
· Delivers ahead of time • Supportive team player

· Sees the wider picture-impacts • Leads own team very effectively

across business • Demonstrate functional initiative

· Focuses on what’s good for the ·

business

· Seen as role model by others

· Recognized as exceptional by
other functions as well

· Motivates others to solve problems

· Develops others

· Provides open and honest feedback

· Able to establish and lead cross-

functional teams

LIMITATIONS OF THE STUDY

A few limitations and constraints came in way of conducting the present study, under
which the researcher had to work are as follows:

Ø Although all attempts were made to make this an objective study, biases on
the part of respondents might have resulted in some subjectivity.

Ø Though, no effort was spared to make the study most accurate and useful, the
“sample Size” selected for the same may not be the true representative of the
Company, resulting in biased results.
 Ø This being the maiden experience of the researcher of conducting study such
as this, the possibility of better results, using deeper statistical techniques in
analyzing and interpreting data may not be ruled out.

OBJECTIVES OF PERFORMANCE APPRAISAL

1.Provide a basis for promotion , transfer and termination.

2.Enhance employees’ effectiveness by helping to identify their strengths and weaknesses.
3.Inform them about expected levels of performance.
4.Identify training and development needs.
5.Remove work alienation.
6.Remove discontent.
7.Develop inter-personal relationships.

TELECOM INDUSTRYOVERVIEW

India's telecom sector has shown massive upsurge in the recent years in all respects of
industrial growth. From the status of state monopoly with very limited growth, it has
grown in to the level of an industry. Telephone, whether fixed landline or mobile, is an
essential necessity for the people of India. This changing phase was possible with the
economic development that followed the process of structuring the economy in the
capitalistic pattern. Removal of restrictions on foreign capital investment and industrial
de-licensing resulted in fast growth of this sector. At present the country's telecom
industry has achieved a growth rate of 14 per cent. Till 2000, though cellular phone
companies were present, fixed landlines were popular in most parts of the country.
With government of India setting up the Telecom Regulatory Authority of India, and
measures to allow new players country, the featured products in the segment came in to
prominence. Today the industry offers services such as fixed landlines, WLL, GSM
mobiles, CDMA and IP services to customers. Increasing competition among players
allowed the prices drastically down by making the mobile facility accessible to the urban
middle class population, and to a great extend in the rural areas. Even for small
shopkeepers and factory workers a phone connection is not an unreachable luxury. Major
players in the sector are BSNL, MTNL, Bharti Teleservices, Hutchisson Essar, BPL, Tata,
Idea, etc. With the growth of telecom services, telecom equipment and accessories
manufacturing has also grown in a big way.

The telecom network in India is the fifth largest network in the world meeting up with
global standards. Presently, the Indian telecom industry is currently slated to an estimated
contribution of nearly 1% to India’s GDP.

INDIAN TELECOM HISTORY

The Indian Telecommunications network with 110.01 million connections is the fifth
largest in the world and the second largest among the emerging economies of Asia.

Today, it is the fastest growing market in the world and represents unique
opportunities for U.S. companies in the stagnant global scenario. The total subscriber base,
which has grown by 40% in 2005, is expected to reach 250 million in 2007.

According to Broadband Policy 2004, Government of India aims at 9 million

broadband connections and 18 million internet connections by 2007. The wireless
subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY2004- 2005.
In the last 3 years, two out of every three new telephone subscribers were wireless
subscribers. Consequently, wireless now accounts for 54.6% of the total telephone
subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected
to bypass 2.5 million new subscribers per month by 2007.

The wireless technologies currently in use are Global System for Mobile Communications
(GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5
CDMA operators providing mobile services in 19 telecom circles and 4 metro cities,
covering 2000 towns across the country.

EVOLUTION OF THE INDUSTRY-IMPORTANT MILESTONES

History of Indian Telecommunications

Year

1851 First operational land lines were laid by the government near Calcutta (seat
of British power)

1881 Telephone service introduced in India

1883 Merger with the postal system

1923 Formation of Indian Radio Telegraph Company (IRT)

1932 Merger of ETC and IRT into the Indian Radio and Cable Communication
Company (IRCC)

1947 Nationalization of all foreign telecommunication companies to form the

Posts, Telephone and Telegraph (PTT), a monopoly run by the
government's Ministry of Communications

1985 Department of Telecommunications (DOT) established, an exclusive

provider of domestic and long-distance service that would be its own
regulator (separate from the postal system)

1986 Conversion of DOT into two wholly government-owned companies: the

Videsh Sanchar Nigam Limited (VSNL) for international telecommunications
and Mahanagar Telephone Nigam Limited (MTNL) for service in
metropolitan areas.

1997 Telecom Regulatory Authority of India created.

1999 Cellular Services are launched in India. New National Telecom Policy is
adopted.

2000 DoT becomes a corporation, BSNL

According to a recent report in The Economic Times, the telecom sector is expected to
create 150,000 jobs in the country this year, the figure being based on estimates of hiring
consultants.
In fact, there are even fears that the number of experienced and skilled telecom personnel
to be required would exceed the work force currently available in India.

Meanwhile, according to a press release by the Telecom Regulatory Authority of India

(TRAI), the total number of telephone connections reached 374.13 million at the end of
November, resulting in the growth of teledensity to 32.34% in the country.

TRAI further stated that 10.35 million wireless subscribers were added in November
2008, taking the total number of wireless subscribers (GSM, CDMA and WLL) to 336.08
million at the end of November 2008.

In the landline segment, however, the subscriber base registered a drop of 38.05 million
by November 2008. The broadband subscriber base reached the 5.28 million mark in the
country at the end of this period.

Thus the total number of telephones - wireless and wireline - connections added during
November 2008 amounted to 10.18 million. This is slightly less than the 10.29 million
total connections added in October 2008.

The competitiveness of a company of an organization is measured through the quality of

products and services offered to customers that are unique from others. Thus the best
services offered to the consumers are result of the genius brains working behind them.
Human Resource in this regard has become an important function in any organization.

All practices of marketing and finances can be easily emulated but the capability, the skills
and talent of a person cannot be emulated. Hence, it is important to have a well-defined
recruitment policy in place, which can be executed effectively to get the best fits for the
vacant positions. Selecting the wrong candidate or rejecting the right candidate could turn
out to be costly mistakes for the organization. Therefore a recruitment practice in an
organization must be effective and efficient in attracting the best manpower.

The current global meltdown may have affected India as well, with reports of significant
job cuts across various sectors. However, one sector continues to boom – the telecom
sector. The recruitment is an ongoing process carried through out the year. The project is
based on the study of recruitment process. The various recommendations suggested have
been the result of the study. The idea is to generate ways of dealing with heavy
recruitment in the sector and making hiring process manageable and efficient.
Indian Telecom sector, like any other industrial sector in the country, has gone through
many phases of growth and diversification. Starting from telegraphic and telephonic
systems in the 19th century, the field of telephonic communication has now expanded
to make use of advanced technologies like GSM, CDMA, and WLL to the great 3G
Technology in mobile phones. Day by day, both the Public Players and the Private
Players are putting in their resources and efforts to improve the telecommunication
technology so as to give the maximum to their customers.

Internet Services

There are Public Players and Private Players providing the Internet Services such as
broadband, dial-up, pre paid and post paid Internet, Wi-Fi, etc. Subscriber base of Internet
Services provided by Public Players is showing an upward trend.

Internet subscriber base of Public Players

Private Players are also adding more and more customers every year showing an upward
trend.
Internet subscriber base of Private Players

Figures are based on TRAI reports and individual company's reports

INVESTMENT IN TELECOM SECTOR

Both Public Players and Private Players are investing huge sums to expand their network
and provide more coverage in Fixed Line Telephonyas well as mobile telephony.

Facing stiff competition from private sector, Public Players are taking up measures to
increase their customer base of fixed lines and Internet Services. MTNL and BSNL are
investing in Internet infrastructure to provide much reliable network.

Capital investment of Public Players in Fixed Line Telephony

Private Players are striving hard to capture more and more customers. They are
introducing low-cost tariff plans and discount schemes in Fixed Line Telephonyand
Internet Services to increase their customer base. They are

also in the process of enlarging their network area providing more coverage in urban as
well as rural areas.

Annual investment of major Private Players in Indian telecom sector

* Figures are based on TRAI reports and individual company's reports

Public and Private Players

MTNL, BSNL, VSNL are the major Public Players, whereas Airtel, Idea, Hutch, Tata,
Reliance, BPL are the leading Private Players in the country. Some of them are entering
foreign markets as well. The Bharti Telecom will be launching its services for the NRIs in
the US with the help of Airtel CALLHOME service.

MARKET SHARES-
PUBLIC & PRIVATE PLAYERS
The Indian telecom sector can be broadly classified into Fixed Line Telephonyand mobile
telephony. The major players of the telecom sector are experiencing a fierce competition
in both the segments. The major players like BSNL, MTNL, VSNL in the fixed line and
Airtel, Hutch, Idea, Tata, Reliance in the mobile segment are coming up with new tariffs
and discount schemes to gain the competitive advantage. The Public Players and the
Private Players share the fixed line and the mobile segments. Currently the Public Players
have more than 60% of the market share.
Both fixed line and mobile segments serve the basic needs of local calls, long distance
calls and the international calls, with the provision of broadband services in the fixed line
segment and GPRS in the mobile arena. Traditional telephones have been replaced by the
codeless and the wireless instruments. Mobile phone providers have also come up with
GPRS-enabled multimedia messaging, Internet surfing, and mobile-commerce.

The much-awaited 3G mobile technology is soon going to enter the Indian telecom
market. The GSM, CDMA, WLL service providers are all upgrading themselves to
provide 3G mobile services.

Along with improvement in telecom services, there is also an improvement in

manufacturing. In the beginning, there were only the Siemens handsets in India but now a
whole series of new handsets, such as Nokia's latest N-series, Sony Ericsson's W-series,
Motorola's PDA phones, etc. have come up. Touch screen and advanced technological
handsets are gaining popularity. Radio services have also been incorporated in the mobile
handsets, along with other applications like high storage memory, multimedia
applications, multimedia games, MP3 Players, video generators, Camera's, etc. The value
added services provided by the mobile service operators contribute more than 10% of the
total revenue.

The leading cellular service providers have the following number of subscribers:

Service Provider No. of CDMA Subscribers No. of GSM Subscribers

Reliance 2.75 crores 38.76 lakhs
 Tata 1.07 crores
Airtel 3.37 crores
MTNL 24.98 lakhs
BSNL 2.44 crores
Hutch 2.44 crores
Idea 1.3 crores
Spice 25.56 lakhs
BPL 10.62 lakhs
Aircel 48 lakhs

Bharti Airtel has the largest customer base with 31% market share, followed by Hutch and
BSNL with each holding 22% market share.

The 2007 budget has brought further relief to the customers with the reduction in the
tariffs, both local and long distance, and with slashing down the roaming rentals. This is
likely to lead to even more people going for cellular services and more and more use of the
value added services. However, landline telephony is likely to remain popular, too, in the
foreseeable future. MTNL, the largest landline service provider, has recently taken some
bold initiatives to retain its market share and, if possible, expand it.

INVESTMENT AND GROWTH

In 2005-2006, the telecom industry witnessed a growth of 21% with a total revenue of Rs.
86,720 crores, and the total investment rising to Rs. 2,00,660 crores. It is projected that the
telecom industry will be enjoying over 150% growth in the next 4-6 years. The growth
also requires a huge investment by the players in the sector. Bharti Airtel is planning to
invest about $8 billion by the year 2010.

Liberalization policy and some socio-economic factors are mainly responsible for the
immense growth in the sales volumes. The lifestyle of the people has changed. They need
to be connected to the other people all the time. With the lowering down of the tariffs the
affordability of the mobile phones has increased. The finance sector has also come up with
loans for handsets on 0% interest. Mobile services providers are also expanding their
coverage area by installing more and more antennas and other equipments.

The telecom sector in the country has already adopted the latest technological
advancements to cater to the demands of the growing market. Telecom Expo India,
Convergence India, VAS India and IPTV India being organized year to year are all efforts
in this direction.

Budget 2007 has brought disappointment to the telecom sector. Mobile service providers
have been asked to cut down their roaming rentals as well as their long distance and
international call tariffs. This has led to discontent on the part of the service providers.
However, Telecom Regulatory Authority of India (TRAI) is of the opinion that this will
lead to increased use of roaming, which will ultimately lead to more revenue generation.
Moreover, with cheaper handsets and lesser tariffs, it is expected that by the year 2010
there will be over 500 million subscribers in the Indian telecom market.

Also, the telecom industry this year will be focusing more on rural areas to connect them
with the urban areas so that the farmers and the small-scale industries can have faster
access to information related to weather and market conditions.

EMPLOYMENT STATUS

With the coming of more and more projects, the telecom industry is going for high scale
recruitments. There is a huge demand for software engineers, mobile analysts, and
hardware engineers for mobile handsets. Besides, there are ample opportunities for
marketing people whose services are required to capture more and more customer base.

The new projects, setting up of new service bases, expansion of coverage areas, network
installations, maintenance, etc are providing more and more employment opportunities in
the telecom sector.

TELECOM POLICY ENVIRONMENT IN INDIA

Indian telecommunications today benefits from among the most enlightened

regulation in the region, and arguably in the world. The sector, sometimes
considered the “poster-boy for economic reforms,” has been among the chief
beneficiaries of the post-1991 liberalization. Unlike electricity, for example, where
reforms have been stalled, telecommunications has generally been seen as removed from
“mass concerns,” and thus less subject to electoral calculations. Marketoriented reforms
have also been facilitated by lobbying from India’s booming technology sector, whose
continued success of course depends on the quality of communications infrastructure.

Despite several hiccups along the way, the Telecom Regulatory Authority of India
(TRAI), the independent regulator, has earned a reputation for transparency and
competence. With the recent resolution of a major dispute between cellular and fixed
operators (see below),Indian Telecommunications, already among the most competitive
markets in the world, appears set to continue growing rapidly.

While telecom liberalization is usually associated with the post-1991 era, the seeds of
reform were actually planted in the 1980s. At that time, Rajiv Gandhi proclaimed his
intention of “leading India into the 21 st
century,” and carved the Department of Telecommunications (DOT) out of the
Department of Posts and Telegraph. For a time he also even considered corporatizing the
DOT, before succumbing to union pressure. In a compromise, Gandhi created two DOT-
owned corporations:

Mahanagar Telephone Nigam Limited (MTNL), to serve Delhi and Bombay, and Videsh
Sanchar Nigam Limited (VSNL), to operate international telecom services. He also
introduced private capital into the manufacturing of telecommunications equipment, which
had previously been a DOT monopoly.

These and other reforms were limited by the unstable coalition politics of the late 1980s. It
was not until the early 1990s, when the political situation stabilized, and with the general
momentum for economic reforms, that telecommunications liberalization really took off.
In 1994, the government released its National Telecommunications Policy (NTP-94),
which allowed private fixed operators to take part in the Indian market for the first time
(cellular operators had been allowed into the four largest metropolitan centers in 1992).
Under the government’s new policy, India was divided into 20 circles roughly
corresponding to state boundaries, each of which would contain two fixed operators
(including the incumbent), and two mobile
operators.

As ground-breaking as NTP-94 was, its implementation was unfortunately marred by

regulatory uncertainty and over-bidding. A number of operators were unable to live up to
their profligate bids and, confronted with far less lucrative networks than they had
supposed, pulled out of the country. As a result, competition in India’s telecom sector did
not really become a reality until 1999. At that time the government’s New
Telecommunications Policy (NTP-99) switched from a fixed fee license to a
revenuesharing regime of approximately 15%. This figure has subsequently been lowered
(to 10%-12%), and is expected to be reduced even further over the coming years. Still,
India continues to derive substantial revenue from license fees ($800 million in 2001-
2002), leading some critics to suggest that the government has abrogated its
responsibilities as a regulator to those as a seller.
Another, perhaps even more significant, problem with India’s initial attempts to introduce
competition was the lack of regulatory clarity. Private operators complained that the
licensor – the DOT – was also the incumbent operator. The many stringent conditions
attached to licenses were thus seen by many as the DOT’s attempt to limit competition. It
was in response to such concerns that the government in 1997 set up the Telecom
Regulatory Authority of India (TRAI), the nation’s first independent telecom regulator.

Over the years, TRAI has earned a growing reputation for independence,
transparency and an increasing level of competence. Early on, however, the
regulator was beleaguered on all fronts. It had to contend with political interference, the
incumbent’s many challenges to its authority, and accusations of ineptitude by private
players. Throughout the late 1990s, TRAI’s authority was steadily whittled
away in a number of cases, when the courts repeatedly held that regulatory power lay with
the central government. It was not until 2000, with the passing of the TRAI Amendment
Act, that the regulatory body really came into its own. Coming just a year after NTP-99,
the act marks something of a watershed moment in the history of India telecom
liberalization. It set the stage for several key events that have enabled the vigorous
competition witnessed today. Some of these events include:

• The corporatization of the DOT and the creation of a new state-owned

telecom company, Bharat Sanchar Nigam Ltd (BSNL), in 2000;

• The opening up of India’s internal long-distance market in 2000, and the

subsequent drop in long-distance rates as part of TRAI’s tariff rebalancing
exercise;

• The termination of VSNL’s monopoly over international traffic in 2002,

and the partial privatization of the company that same year, with the Tata
group assuming a 25% stake and management control;

• The gradual easing of the original duopoly licensing policy, allowing a

greater number of operators in each circle;

• The legalization, in 2002, of IP telephony (a move that many believe

was held up due to lobbying by VSNL, which feared the consequences on
its international monopoly);
The introduction in 2003 of a Calling Party Pays (CPP) system for cell
phones, despite considerable opposition (including litigation) by fixed
operators;

• And, more generally, the commencement of more stringent

interconnection regulation by TRAI, which has moved from an interoperator
“negotiations-based” approach (often used by the stronger
operator to negotiate ad infinitum) to a more rules-based approach.

All of these events have created an impressive forward-momentum in Indian

telecommunications, resulting in a vigorously competitive and fast-growing sector.
India has also suffered from its fair share of regulatory hiccups. Many operators
(mobile players in particular) still complain about the difficulties of gaining access to the
incumbent’s (BSNL) network, and the government’s insistence

on capping FDI in the telecom sector to 49% (a move made in the name of national
security) limits capital availability and thus network rollout. In addition, ISPs, who were
allowed into the market under a liberal licensing regime in 1998, continue to hemorrhage
money, and have been pleading with the government for various forms of relief, including
the provision of unmetered phone numbers for Internet access. Despite initially impressive
results, the growth of Internet in the country has recently stalled, with
only 8 million users. Broadband penetration, too, remains tiny.

Unified Licensing

But perhaps the biggest – and, until recently, most intractable – regulatory problem has
been the drawn-out battle over “limited mobility” telephony. This imbroglio began in
1999, when MTNL sought permission from TRAI to provide CDMA-based WLL services
with “limited mobility.” GSM cellular operators were soon up in arms, arguing that
“limited mobility” was simply a backdoor entry into their business.
Moreover, fixed operators had paid lower license and spectrum fees than cellular ones;
were not required to pay access charges for cell-to-fixed calls (unlike their cellular
counterparts); and, amidst accusations of cross-subsidization, were charging considerably
lower rates than the cellular operators.

The resulting conflict dragged on in the courts and in the political arena for years.

Fixed operators including new entrants Reliance and Tata Teleservices claimed that they
were being prevented from providing a cheap service that would drive penetration and be
of benefit to the “common man”; cellular players bitterly opposed what they perceived as
unequal regulatory treatment for two kinds of operators who were in fact offering the same
service. The real victim, of course, was the Indian telecommunications market, which
suffered from investor perceptions of regulatory confusion and operator in-fighting. In late
2002, for example, thousands of mobile users in New Delhi were for a time cut off from
the fixed-line network when MTNL

shut down interconnection for cellular companies. (MTNL later attributed the incident to a
“technical snag.”)

It was not until late 2003 that the issue was finally resolved, under considerable
government pressure, when cellular operators agreed to withdraw their many cases against
the fixed-line operators. Fixed operators would in effect be allowed to enter the mobile
business; in return, the government granted cellular players several concessions, including
lower revenue-share arrangements estimated to total over $210 million. Perhaps most
notably, the government announced its intention to adopt a “unified access licensing”
regime, which would in the future provide a single,
technology-neutral license for fixed and cellular operators. The hope is that this new
license category will prevent a repeat of the recent controversy, and allow new
technologies to enter the Indian market without requiring a wholesale rewrite of licensing
laws.
 MAJOR MARKET TRENDS

The telecoms trends in India will have a great impact on everything from the humble PC,
internet, broadband (both wireless and fixed), cable, handset features, talking SMS, IPTV,
soft switches, and managed services to the local manufacturing and supply chain.

This report discusses key trends in the Indian telecom industry, their drivers and the major
impacts of such trends affecting mobile operators, infrastructure and handset vendors.
Higher acceptance for wireless services-
Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself).

They prefer wireless services compared to wire-line services, which is evident from the
fact that while the wireless subscriber base has increased at 75 percent CAGR from 2001
to 2006, the wire-line subscriber base growth rate is negligible during the same period.

In fact, many customers are returning their wire-line phones to their service
providers as mobile provides a more attractive and competitive solution. The main drivers
for this trend are quick service delivery for mobile connections, affordable pricing plans in
the form of pre-paid cards and increased purchasing power among the 18 to 40 years age
group as well as sizeable middle class – a prime market for this service.
Some of the positive impacts of this trend are as follows. According to a study, 18 percent
of mobile users are willing to change their handsets every year to newer models with more
features, which is good news for the handset vendors. The other impact is that while the
operators have only limited options to generate additional revenues through value-added
services from wire-line services, the mobile operators have numerous options to generate
non-voice revenues from their customers.

Some examples of value-added services are ring tones download, coloured ring back
tones, talking SMS, mobisodes (a brief video programme episode designed for mobile
phone viewing) etc. Moreover, there exists great opportunity for content developers to
develop applications suitable for mobile users like mobile gaming, location based services
etc. On the negative side, there is an increased threat of virus – spread through mobile data
connections and Bluetooth technology – in mobile phones, making them unusable at
times. This is good news for anti-virus solution
providers, who will gain from this trend.

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in
done on the basis of number of subscribers will force companies to merge so as to claim
large number of subscribers to gain more spectrum as a precursor to the launch of larger
and expanded services. However it must also be noted that this may very well never
happen on account of low telecom penetration.

CONSTRAINTS

• Slow pace of the reform process .

• It would be difficult to make in-roads into the semi-rural and rural areas
because of the lack of infrastructure. The service providers have to incur a huge
initial fixed cost to make inroads into this market. Achieving break-even under
these circumstances may prove to be difficult.
 • The sector requires players with huge financial resources due to the above
mentioned constraint. Upfront entry fees and bank guarantees represent a sizeable
share of initial investments. While the criteria are important, it tends to support the
existing big and older players. Financing these requirements require a little more
liberal approach from the policy side.

• Problem of limited spectrum availability and the issue of interconnection charges

between the private and state operators.

WHAT IS IPTV

IPTV (Internet Protocol Television) describes a system where a digital television service
is delivered using the Internet Protocol over a network infrastructure, which may include
delivery by a broadband connection. For residential users, IPTV is often provided in
conjunction with Video on Demand and may be bundled with Internet services such as
Web access and VoIP. The commercial bundling of IPTV, VoIP and Internet access is
referred to as a Triple Play.
IPTV is the service which is providing customers with great advantage of choice, time,
and cost selection. i.e. Customer has been given a choice of various channels (100 to
1000) out of which he can choose according to his taste. Apart from that he is given an
advantage that he to pay only for the channels he want to see and for all the channels
which are provided to his Set Top Box. Time shift is another property which enables a
person to watch TV serial at the time they want to watch by ordering that. He has the
facility to pause the programs also.
IPT V is providing customers with services like-
 • Movies on Demand

• Video Conference

• Internet Access

• Games on Demand

• Channel Selection

• Meta Data.

These services are the core strength of IPTV and give customer various advantages to
make their life easy and more comfortable. More than that IPTV is providing them with
Full Entertainment Package.

Major IPTV Players in India:

1.) Icontrol IPTV (by Aksh in association with MTNL/BSNL)

2). Airtel Digital TV Interactive

3) Reliance IPTV

4) Myway IPTV
 COMPANY PROFILE

Aksh Optifibre Limited (ICONTROL)

Icontrol is India's first IPTV service launched by Aksh Optifibre Ltd in association
with MTNL/BSNL .

Aksh Optifibre, a public listed company, the second largest manufacturer of cable and
optical fibres. It was incorporated in the year 1986 as a private limited company and was
converted into a public limited company on 13th March 1994. Aksh has two plants at
Bhiwadi, for manufacturing optical fibre cables and fibre, and another at Reengus,
Rajasthan. Aksh has recently demonstrated a new cost-effective concept called "Fibre-to-
Home", through which they expect to revolutionise the IT and telecom industry
completely. It's a concept that would bring Voice, Audio, Video and Internet direct to
home. The company is planning a Rs 200-crore expansion for the near future. The
company is also betting big on the emerging IPTV (Internet Protocol Television) segment
in India.

AKSH Optifibre Ltd. launched icontrol India's first IPTV (Internet-protocol TV) in
association with MTNL in Delhi and Mumbai has revolutionized TV viewing experience.
icontrol brand is a service that helps to control the TV as per the viewer. The "I" in
icontrol stands for the Interactivity factor prevalent in IPTV. Aksh has recently signed an
agreement with BSNL to provide IPTV services in 20 cities in North India in the states of
Jammu & Kashmir, Punjab, Haryana, Rajasthan and UP (West). The company plans to
add about 5 lakh subscribers for our IPTV services in Delhi and Mumbai in next 3 years.
Aksh is investing close to $37 million in its services business on IPTV and VoIP
platforms.

icontrol offers more than 120 channels: SONY, STAR, Neo, Ten Sports and a host of
others, Video on Demand- 200 and above movies with REWIND, FAST FORWARD and
PAUSE option, Chill feature TV- allows viewing as per subscriber's convenience, review
past 3 day's telecast, Replay Live TV Channels (Cool), Watch cricket again, And again,
And again. A-Tube-Video Classified pages offering you solutions to your day to day
requirements from Lifestyle, Travel, Restaurants, Schools, Parlours, to even a plumber

Speaking about the brand- icontrol, Dr. Choudhari, MD, Aksh Optifibre said " The launch
of icontrol comes at a time when subscribers neither have time nor patience to wait and
wish for service delivery. Through icontrol, we aim to clear all misconceptions that for
viewing IPTV, PC is necessary. This would also help in achieving a wider reach within
the nation. The potential of icontrol is such that it will do to India, what PC did to US"

The IPTV / VoIP business is slated to grow in an exponential manner over the next few
years. And it is estimated that in 3 years time, this division at Aksh alone can reach a
turnover of around Rs 3500 crores.

Various Milestones of the Company

1986 : Incorporated as a Private Limited Company..

1994 : Converted into a Public Limited Company.

1994 : Diversified into the manufacture of Optic Fibre Cables (OFC) by setting up a
plant at Bhiwadi (Plant-I). Annual capacity - 6500 Cable Kilometers (CKM).

1995 : Integrated backwards into manufacture of Optical Fibre with Annual

capacity of 150,000 Fibre Kilometres (FKM).

1998 : ISO 9002 accreditation by United Laboratories (UL), USA.

1999 : Turnover OFC manufacturing capacity to 33,000 CKM

1999 : Took over the Optical Fibre Cable plant of CMI Ltd., Plant-II, Capacity increased
to 50,000 CKM.

2000 : Came with an IPO and got listed on BSE, NSE and JSE.
2000 : Merged Telecords (India) Private Limited manufacture of FRP rods with Plant at
JaitPura (Plant-IV).

2001 : Enhanced the production capacity of Fibre to 1.45 million FKM, by

commissioning a dual Fibre Drawing Tower

2001 : Started a plant for Fibre Reinforced Plastic (FRP) rods at Ringus (Plant-III) with
capacity of 0.3 million KM.

2002 : Increased capacity at Ringus plant to 0.8 million KMs

2003 : Added capability to manufacture Ribbon cable and special access cable FTTH

Human Resources:

HUMAN RESOURCE PHILOSOPHY

Company feels proud for all members and believes in leadership through people. The
competence and enthusiasm of the people will drive the company to building a world-class
organization. All human resource initiatives shall be geared towards internalizing the
value system.

HUMAN RESOURCE VISION

To become a world-class organisation in all people development and management

practices

CHANGE INITIATIVE

The company is undergoing several changes in organisational structure and processes to

align its people and systems to its vision and to meet the challenges of the new millennium
in the march towards the establishment of a world-class organisation. Such has been the
spirit and the drive behind these initiatives that people centeredness has become the
lifeline of the organisation.

ORGANIZATION STRUCTURE

Concomitant with the Process based Design has been the shift from a Hierarchical
structure to Flat structure in which we have merely four levels between the MD and the
lowest level in the company. Today the company has merely four levels : MD, CEO ,
COO , Process Leader , Process Associate & Process Member.
The restructuring has galvanized flexibility, facilitating empowerment of members,
enhancing decision making ability and in the ultimate analysis improving the efficiency of
the organisation. It is needless to say how handy the exercise has been in braking the
hierarchical mindset in terms of power, status etc. The measure has given a fresh impetus
to performance, value creation & unleashed creativity. Far from qualifying hierarchical
status or superiority, the different levels signify the competence bands within the
organisation.

TEAM ORIENTATION

Teams are the pivot of a Process based Organisational Structure. Hence team orientation
has been given major emphasis at Aksh. Organisation working is a Team effort wherein
every members contributes towards achieving the objectives of the organisation. Therefore
consolidating the team spirit is an ongoing endeavour. The rationale of this objective is to
create synergy by defining individual roles and responsibilities and thereby achieving the
organisational vision

TRAINING AND DEVELOPMENT

The company harbours a strong belief that training is a worthwhile investment. Such has
been the commitment to training that it has emerged as a major educational enterprise to
improve performance on the job and to acquire skills and knowledge to do a new job.
Encouraging learning uniquely , the organisation has introduced a scheme wherein a
member is partially sponsored even to a long term external program which may not have a
high degree of correlation to the individual's present or future needs. The training needs
are identified quarterly in the organisation on the basis of competency reviews, process
research and the organisational thrust areas

Products & Services:

Icontrol offers more than 120 channels: SONY, STAR, Neo, Ten Sports and a host of
others.
Video on Demand- 200 and above movies with REWIND, FAST FORWARD and
PAUSE option, Chill feature TV- allows viewing as per subscriber's convenience, review
past 3 day's telecast, Replay Live TV Channels (Cool), Watch cricket again, And again,
And again.
A-Tube-Video Classified pages offering you solutions to your day to day requirements
from Lifestyle, Travel, Restaurants, Schools, Parlours, to even a plumber

Vision & Mission:

AksH will become a globally significant player in IPTV & optical fibre cable business.
The IPTV / VoIP business is slated to grow in an exponential manner over the next few
years. And it is estimated that in 3 years time, this division at Aksh alone can reach a
turnover of around Rs 3500 crores
It will be India's pride and will create significant value for all stake holders with
capabilities to innovate and provide new solutions based on challenging, trail blazing &
disruptive technologies.
It will be a great place to work and associate with and will facilitate / create leadership
opportunities for its people & suppliers.
SWOT Analysis of Aksh Optifibre Ltd.

Strengths Weaknesses

• Pre-Hiring assessment tests to • Pre assessment tests are costly.

understand aptitude and personality • Conversion of footfalls is low.
of candidates. • Lengthy pre-offer formalities.
• Proper reference checks to ensure • Huge employee turnover.
that only bonafide candidates are
appointed.
• Adequate number of channel
partners to generate footfalls for each
location.
• Footfall MIS being maintained at
each RO locally by Admin.

Threats
Opportunities
 • Increasing number of private players
• Campus recruitments have huge in Telecom sector creates ample
potential for fulfilling manpower choices, frequent and easy mobility
requirements cost effectively. for employees.
• Tie up with recruitment agencies on • Same channel partners are handling
supplying fixed number of footfalls all Telecom companies. This leads to
week on week. same pool of candidates being
• Develop exclusive contract with circulated to all partners.
channel partners to meet the • Increasing spill over as a candidate
manpower requirements. has more than one offer at the time of
• Make blue form brief and to the making a job shift.
point. • As the movement of the Officers are
• Reduce turn around time of making frequent from one telecom company
an offer. to other, senior level candidates
hesitate to meet HR of other
companies for the fear of grapevine.

Objectives of the study

To carry out the study of Aksh Optifibre Limited, we framed the following objectives

1. Identification of the technique of performance appraisal followed in Aksh Optifibre

Limited.

2. Employee attitude towards the present appraisal system.

3. Review of the current appraisal system in order to

1. Enhance productivity
 2. Attain global standards

4. To provide suggestions & recommendations from the study conducted.

RESEARCH METHODOLOGY

RESEARCH DESIGN:

Research Design refers to "framework or plan for a study that guides the collection and
analysis of data". A typical research design of a company basically tries to resolve the
following issues:

a) Determining Data Collection Design

b) Determining Data Methods

c) Determining Data Sources

d) Determining Primary Data Collection Methods

e) Developing Questionnaires

f) Determining Sampling Plan

(1) Explorative Research Design:

Explorative studies are undertaken with a view to know more about the problem. These
studies help in a proper definition of the problem, and development of specific hypothesis
is to be tested later by more conclusive research designs. Its basic purpose is to identify
factors underlying a problem and to determine which one of them need to be further
researched by using rigorous conclusive research designs.

(2) Conclusive Research Design:

Conclusive Research Studies are more formal in nature and are conducted with a view to
eliciting more precise information for purpose of making marketing decisions.

These studies can be either:

a) Descriptive or
b) Experimental

Thus, it was mix of both the tools of Research Design that is, Explorative as well as
Conclusive.

SAMPLING PLAN:

Sample Size = 50 Employees

Sample Area = Sahara Airlines Ltd, Delhi,

Dr Gopaldas Building.

Duration = Two (2) Months.

DATA COLLECTION:

Data Sources:

(i) Secondary Data through Internet

(ii) Primary Data through Questionnaire

(iii) Contact Method

(iv) Personal Interact

DATA ANALYSIS

1.Employees’ opinion as to the present appraisal system

Options Responses (in %)

Fully Satisfied 2

Satisfied 24

Can’t Say 44

Dissatisfied 30
In AKSH 2% employees fully satisfied 24%employees satisfied, 30% employees
dissatisfied with the present appraisal system and 44% employees have a mix opinion
about the performance appraisal system.

2. Awareness of technique of Performance Appraisal being followed at AKSH among

Employees .

Options Response (in %)

Yes 72

No 28
In AKSH 72% employees know about the techniques of performance appraisal which
apply in this company and 28% employees do not know about these techniques.

3.If continuous appraisal – what should be the gap between two appraisal period

Options Response (in %)

Quarterly 20
Half Yearly 44
Yearly 36

Different employees have different views about the performance appraisal according
to their views -yearly44%, quarterly 20% and yearly36% employees agree for
performance appraisal.

4.Number of Employees being appraised during their service period

Options Response (in %)

Yes 68
No 32

Performance appraisal in AKSH done by the MBO method, from the past record we find
there are 68% employees appraise during their service period and 32% employees are not
appraise.

6. Who should do the appraisal?

Options Response (in %)

Superior 38

Subordinate 20

Consultant 20

Self Appraisal 22
In the process of appraising, both the parties are human being, that is, the one who is being
apprised and the other who is appraising. Thus, there bound to be subjectivity involved, be
it an objective way of appraising.

Thus, when asked from among the sample size of 50 respondents, as huge as employees
like superior 38%, subordinate 20%, consultant 20%, self appraisal 22%like for their
performance appraisal .

6. Does appraisal help in polishing skills and performance area?

Options Response (%)

Yes 74

No 10

Some What 16

Response(%)

Yes
No
Some What

If the process of appraisal does not lead to the improvement of the skills and proficiency
of the employees, the very purpose of appraisal becomes illogical in the survey conduct it.
It was observed nearly that 74% respondents agree performance appraisal does lead to
polishing skills of the employees. Nearly 10% of the respondents view that it does not
serve this purpose and around 16% were not able to responds as to whether it serve any
such purpose or not.

7. Does personal bias creeps-in while appraising an employee

Options Response (%)

Yes 82

No 18

In the process of appraising, both the parties are human being, that is, the one who is being
apprised and the other who is appraising. Thus, there bound to be subjectivity involved, be
it an objective way of appraising.

Thus, when asked from among the sample size of 50 respondents, as huge as 82 %
respondents that personal bias do creep in while appraising an individual. Hence, it
is inevitable to say that personal likings do not come in the process of appraisal. It
is the extent to which the appraiser manages it so that it does not become very
partial and bias.

8. Do the employee’s feel comfortable with the performance appraisal system?

Options Responds
Always 35
Some Times 25
Often 25
Never 15
 The chart shows that the 35% employee’s feel comfortable with the performance
appraisal system always, 25% feel often, 25%feel sometimes15%feel never
comfortable with the performance appraisal system in AKSH OPTIFIBRE
LIMITED.

9.Do you understand the basic objective of performance appraisal?

Options Responds (in %)

Fully 50
Partially 38
No 12
There are 50% employees in AKSH knows about the objectives of performance appraisal
and 38% employees partially knows the objective of performance appraisal 12% employee
don’t know about the objectives of the performance appraisal.
10.Does performance appraisal leads to identification of hidden potential.

Options Response in (%)

Yes 75

No 25

In AKSH 75% employees thinks that the performance appraisal leads to

identification of hidden potential but 25 employee’s are not agree with them.
11. Does this appraisal system helps to understand helps\hindrances in achieving the set
target?

Options Response (in %)

True 45

Not True 25

Partially True 15

Some Times 15

By this graph it is clear that performance appraisal helps in achieving the objectives
of company, 45% employees thinks it is true and 25%emploees think it is not
true and 15% employees say it is partially true 15% say it is some times true.
 FINDINGS

HOW TO COMPLETE PERFORMANCE APPRAISAL FORM

Performance appraisal form provides the basis for the performance review, providing the
feedback to the employees and the final rating of the employee. It also facilitates various
other HR decisions and career development plans and decisions of the
employees.Therefore,performance appraisal from should be filled with utmost care and
objectivity.
The Performance appraisal form should be filled by the immediate supervisor or manager
of the employee in order to ensure that the appraiser if fully acquainted with the
performance, responsibilities, targets and standards of the employee. All the instructions
and guidelines on the appraisal form should be read and followed carefully.

• Be prepared with all the details of the performance, the standards, job description
and the past appraisals of the employee.

• Clear and unambiguous description of the employee performance should be given

in terms of average, above average, good and excellent performance.

• The focus should be on the employees’ behavior throughout the year and not just
his recent performance.

• Quantify the ratings, wherever possible, to ensure easy comparability.

• Substantiate and support your rating, and attach all the necessary documents(if
required).

• Apart from the defined performance objectives and results, discuss the related
issues as well covering all the aspects of the performance.

When filling the appraisal form, be honest and objective.

 SUGGESTIONS AND CONCLUSION

After having analyzed the data, it was observed that practically there was no
appraisal in the organization. To be an effective tool, it has to be on the continuous
basis. This is the thing that has been mentioned time and again in the report, as, in
the absence of continuity, it becomes a redundant exercise. Before actually deciding
drafting what should be the kind of appraisal the following things should be taken
care of:

1. The very concept of performance appraisal should be marketed throughout the

organization. Unless this is done, people would not accept it, be it how important to
the organization.

2. To market such a concept, it should not start at bottom, instead it should be started
by the initiative of the top management. This would help in percolating down the
concept to the advantage of all, which includes the top management as well as those
below them. This means that the top management has to take a welcoming and
positive approach towards the change that is intended to be brought.

3. Further, at the time of confirmation also, the appraisal form should not lead to
duplication of any information. Instead, detailed appraisal of the employee’s work
must be done – which must incorporates both the work related as well as the other
personal attributes that are important for work performance.

4. It should be noted that the appraisal form for each job position should be different as
each job has different knowledge and skill requirements. There should not be a
common appraisal form for every job position in the organization.

5. The job and role expected from the employees should be decided well in advance
and that too with the consensus with them.
 6. A neutral panel of people should do the appraisal and to avoid subjectivity to a
marked extent, objective methods should be employed having quantifiable data.

7. The time period for conducting the appraisal should be revised, so that the exercise
becomes a continuous phenomenon.

8. Transparency into the system should be ensured through the discussion about the
employee’s performance with the employee concerned and trying to find out the
grey areas so that training can be implemented to improve on that.

Ideally in the present day scenario, appraisal should be done, taking the views of all
the concerned parties who have some bearing on the employee. But, since a change
in the system is required, it cannot be a drastic one. It ought to be gradual and a
change in the mindset of both the employees and the head is required.

I carried out a questionnaire process to have the feedback so that I can get my study
going in focused direction:

QUESTIONAIRE

1. Employees opinion as to the present appraisal system

a) Fully Satisfied b) Satisfied

e) Can’t Say d) Dissatisfied

2.Awareness of techniques of Performance Appraisal being followed at HCL among

employees.

a) Yes b) No

3.If continuous appraisal what should be the gap between two appraisal period
Quarterly b) Half Yearly c) Yearly
 4. Number of employee being appraised during their service period

a)Yes b)No

5.Who in your opinion should appraise the employee?

a) Superior b) Subordinates

c) Self Appraisal d) Consultant

6.Does the appraisal system helps in polishing the skills or performance

area?

a) Yes b) No c) Somewhat

7. Does personal bias creeps in while appraising an employee?

a) Yes b) No

8. Do the employee’s feel comfortable with the performance appraisal system?

a) Always b) Often
c) Sometimes d) Never

9.Do you understand the basic objective of performance appraisal?

a) Fully b) Partially
c) No

10. Does Performance Appraisal leads to identification of hidden potential of the

employees?

a) Yes b) No
11. Does this appraisal system helps to understand helps\hindrances in achieving the set
target?
a) True b) Partially True
c) Not true d) Sometimes

BIBLIOGRAPHY

 Human Resource Management

Punit Mohan Duggal

 http://www.akshoptifibre.com

 http://www.icontrol.in