PERFORMANCE MANAGEMENT

ON VODAFONE

1
ACKNOWLEDGEMENT

2
DECLARATION

I here by declare that the project report titled

“Performance management ( a study of Vodafone)” was

undertaken by me at Starpowerz direct sales team and was carried

on under the guidance of Mr. ________________ employee of

______________________ affiliated to C.C.S. University, Meerut.

This present work is original and has not been submitted for the

purpose of receiving degree from any university.

3
INDEX

4
5
 INDUSTRY PROFILE

India operates one of the largest telecom networks in Asia. The

telecommunication network continued to grow at a rapid pace as a higher

switching capacity of 17.9 lakh lines was added in the network in 1998-99 as

against 35.2 lakh lines in 1997-98 resulting in an increase of 22.5 per cent in the

switching capacity in 1998-99 over the preceding year. The number of new

connections provided in 1998-99 (was 37.9 lakh as against 32.6 lakh in 1997-98.

Similarly, microwave and optical fiber network was enhanced. 2,06,500 lines of

Trunk Automatic Exchange (TAX) capacity, 14,009 Route Kilometers (RKMs) of

microwave and 31,771 Route Kilometers of optical fiber were added in 1998-99

over the total TAX capacity of 12,61,500 lines. 72,592 Route Kilometers of

microwave and 76,261 Route Kilometers of optical fiber respectively as on March

31, 1998. Efforts to expand the network have been continued in 1999-2000.

6
INVESTMENT

Six companies have so far signed the license agreement with the

Government for providing basic telephone services in the states of Andhra

Pradesh, Gujarat, Maharastra, Madhya Pradesh, Rajasthan and Punjab.

Interconnectivity of network for data transmission has been permitted as per the

recommendations of the National Task Force on Information Technology and

Software Development. An integrated computerized customer service package

for commercial, directory enquiry and telephone billing and accounting has been

implemented in 14 Telecom Districts its first phase in the current, year. The fault

repair service has also been included in the software. This will help in delivery of

customer service on single window concept with a single integrated database.

Licenses to 187 Internet Services Providers (ISP) has been issued. An Inter-

Ministerial Committee has finalized the guideline for setting up the International

Gateway by ISPs. Accordingly, applications have been invited from ISPs for

setting up of International Gateway and the response for this has shown a

remarkable trend as more companies go for the investment in Interent Segment.

The opening up of Ku-band for V-SAT operation is being finalized and the

recommendations of the TRAI are awaited on this matter. DOT has also provided

access to the nearest Internet node on local call basis, throughout India except

for Andaman & Nicobar Islands and Leh due to problem of technical feasibility. It

has been decided to set up Internet access node at every secondary switching

7
area by end of 2000 as per the recommendations of the National Task Force on

Information Technology and Software Development.

A number of other value added services, viz. Voice-mail/Audio-Text, E-mail, V-

SAT, and Radio Paging etc. have also been franchised to various private/public

Indian registered companies on non-exclusive basis.

The National Telecom Policy (NTP) 1994 had envisaged the objective of one

public call office (PCO) for every 500 persons in the urban areas. As on

September 30, 1999, 5.70 lakh PCOs were working all over the country. The

present PCO-Population ratio at the national level is 1:453 for urban areas on all-

India average basis. Further, as per the National Telecom Policy (NTP), every

village is to be provided with one public telephone. This target has now been

rescheduled and expected to be completed by the end of 9th Five-Year Plan. As

per the terms of the license agreement, private operators have to provide a

minimum of 10 per cent Direct Exchange Lines (DELs) as village public

telephones (VPTs). Out of 6.07 lakh villages in the country, 3.43 lakh villages

have been provided with public telephones by the end of September 1999.

During 1998-99, a total of 37,058 villages were provided with telephone facility

and during the current year 1999-2000, it is proposed to provide 45,000 VPTs.

November 1994, 8 licenses were issued for Cellular Mobile Telephone service in

4 metro cities. Further 34 licenses to 14 companies for 18 telecom circles were

issued since December, 1995. The service has since been started in all the 4

8
metro cities and selected cities in 18 Telecom Circles. There were about 13.5

lakh cellular mobile telephone customers in the country as December 30, 1999.

9
NEW TELECOM POLICY 1999 (NTP 1999)

New Policy Framework

In order to effect separation of service providing functions from policy and

licensing functions etc., a separate Department of Telecom Services (DTS) has

been set up in October, 1999. Department of Telecommunication (DOT) would

be concerned with the functions relating to the implementation of treaties and

agreements with other countries; policy matters, licensing, coordination, research

and development, private investment, administration of laws (Acts), Enquiries

and Statistics etc. relating to Telephone Industries (ITI) and Hindustan

Teleprinters Ltd. (HTL). DTS will look after the execution of land. all matters other

than policy and licensing relating to services of telephones, wireless, data,

facsimile and telematics, MTNL, C-DOT etc. The Telecom Commission will

handle matters relating to the coordination between the DOT and DTS. This will

include corporatisation of DTS as India Telecom.

In terms of National Telecom Policy (NTP) 1999 and subsequent Government

approval in 1999, a Package for Migration from fixed license fee to revenue

sharing under New Telecom Policy was offered to the Telephone Instruments

Service Providers, which has been accepted by most of them. 

Consequent to the change in the tariff revision announced by Telecom

Regulatory Authority of India (TRAI), the DOT as a service provider (now DTS),

adopted the tariff with some modifications. The tariff in respect of rural

10
subscribers and low calling urban subscribers was retained at the level prevailing

prior to the notification. In addition, the subscribers got the benefit of reduction in

STD/ISD rates as announced by TRAI. It was estimated that the combined effect

of these revisions would entail significant net reduction in DOT'S revenue in the

current year. TRAI was, therefore, requested to rework the tariffs for the next two

years, keeping in view the negative impact on the revenues of Telecom

operators.

Graph Showing the Subscribers Of Mobile Service providers.

Total Number of Subscribers

12000000
10000000
8000000
6000000 Series1
4000000
2000000
0
Idea

MTNL
BPL
BSNL
Hutch

Reliance
Bharti

SpiceGP

Others

11
CELLULAR MOBILE SERVICE PROVIDERS

INTRODUCTION:

Cellular Telephony - the technology that gives a person the power to

communicate anytime, anywhere - has spawned an entire industry in mobile

telecommunication. Mobile telephones have become an integral part of the

growth, success and efficiency of any business / economy.

The most prevalent wireless technology in the world today, is GSM. The GSM

MoU (Global System for Mobile Communications) was instituted in 1987 to

promote and expedite the adoption, development and deployment and evolution

of the GSM standard for digital wireless communications. The Association was

formed as a result of a European Community agreement on the need to adopt

common standards suitable for cross border European mobile communications.

Starting off primarily as a European standard, the Groupe Speciale Mobile as it

was then called, soon came to represent the Global System for Mobile

Communications as it achieved the status of a world-wide standard. The GSM

MoU Association addresses issues of concern facing the operator, the

administrator, the regulator around theglobe.

The GSM membership has grown exponentially since 1992. The membership

now extends to 323 members from over 125 countries. (See graph) The GSM

network now services over 125 million customers world-wide. The world's

satellite operators have also joined the GSM community, which further adds to its

12
strength and impact on world markets. GSM is today, the world's leading digital

standard accounting for 64% of the global digital wireless market.

The cellular Mobile Service Providers (CMSP) shall be permitted to provide

mobile telephony services including permission to carry its own long distance

traffic within their service area without seeking an additional license. Direct

interconnectivity between licensed CMSP's and any other type of service

provider (including another CMSP) in their area of operation including sharing of

infrastructure with any other type of service provider shall be permitted.

Licenses would be awarded for an initial period of twenty years and would be

extendible by additional periods of ten years thereafter.

FIXED SERVICE PROVIDERS

The Fixed Service Providers (FSP) shall be freely permitted to establish

`last mile' linkages to provide fixed services and carry long distance traffic within

their service area without seeking an additional license. Direct interconnectivity

between FSPs and any other type of service provider (including another FSP) in

their area of operation and sharing of infrastructure with any other type of service

provider shall be permitted. The FSP allowed to directly interconnect with the

VSNL after the opening up of national long distance from January 1, 2000. The

FSP may also utilize last mile linkages or transmission links within its service

area made available by other service providers.

13
The FSP licenses would be required to pay a one time entry fee. All FSP

licensees shall pay license fee in the form of a revenue share. It is proposed that

the appropriate level of entry fee and percentage of revenue share and basis for

selection of new operators for different service areas of operation would be

recommended by TRAI in a time-bound manner, keeping in view the objectives

of the New Telecom Policy.

As in the case for cellular, for WLL also, availability of appropriate

frequency spectrum as required is essential not only for providing optimal

bandwidth to every operator but also for entry of additional operators.

CABLE SERVICE PROVIDERS

Under the provisions of the Cable Regulation Act, 1995, Cable Service Providers

(CSP) shall continue to be freely permitted to provide 'last mile' linkages and

switched services within their service areas of operation and operate media

services, which are essentially one-way, entertainment related services.

INTERNET TELEPHONY

Internet telephony shall not be permitted at this stage. However, Government will

continue to monitor the technological innovations and their impact on national

development and review this issue at an appropriate time.

14
RADIO PAGING SERVICE PROVIDERS

The Radio Paging Service Providers (RPSP) shall be permitted

to provide paging services within their service area of operation, Direct

interconnectivity between licensed RPSPs and any other type of service provider

in their area of operation including sharing of infrastructure shall be permitted.

Interconnectivity between service providers in different service areas shall be

reviewed in consultation with TRAI.

The radio paging licenses shall pay a one time entry fee. The basis for

determining the entry fee and basis for selection of additional operators will be

recommended by the TRAI. All radio paging licensees shall pay license fee as a

revenue share.

15
OTHER SERVICE PROVIDERS

For application like tele banking, tele-medicine, tele-education,

tele trading, e-commerce, other service providers will be allowed to operate by

using infrastructure provided by various access providers. No license fee will be

charged but registration for specific services being offered will be required. These

service providers will not infringe on the jurisdiction of other access providers and

they will not provide switched telephony.

 At present in the country, there are 24604 electronic and 15 non-electronic

exchanges are functioning.

 The Union Cabinet approved the migration package for private telecom

operators. Subsequent to the adoption of New Telecom Policy (1999) by

the government, the existing licensees of Cellular Mobile Telephone

Services and Basic Telephones Services were offered to migrate to NTP

1999. As per this package, the licensees were offered migrations to NTP-

1999.

 Although the telecom segment is liberalized and this important segment

does not come free from controversies and contentious issues. Issues like

implementation of the CPP regime as recommended by the TRAI, the role

of TRAI in issuing licenses, the cancellation of licenses, the percentage of

revenue share between private operators and the government and lastly

16
 the differences between TRAI and MTNL over the launch of the latest

cellular services are some among the issues to be solved.

 The DoT has drawn an ambitions plan to provide over one million

telephone connections based on wireless in local loop (WLL) system

during 2000-01.

 The government initiated the process of separating the policy making

functions of the Department of Telecom from its functions as a service

provider.

17
18
Vodafone Group

In 1982 Racal Electronics plc's subsidiary Racal Strategic Radio Ltd. won one of two UK

cellular telephone network licences; the other going to British Telecom[4][5] The network,

known as Racal Vodafone was 80% owned by Racal, with Millicom and the Hambros

Technology Trust owning 15% and 5% respectively. Vodafone was launched on 1

January 1985.[6] Racal Strategic Radio was renamed Racal Telecommunications Group

Limited in 1985.[5] On 29 December 1986 Racal Electronics bought out the minority

shareholders of Vodafone for GB£110 million.[7]

In September 1988 the company was again renamed Racal Telecom and on 26 October

1988 Racal Electronics floated 20% of the company. The flotation valued Racal Telecom

at GB£1.7 billion.[8] On 16 September 1991 Racal Telecom was demerged from Racal

Electronics as Vodafone Group.[9]

In July 1996 Vodafone acquired the two thirds of Talkland it did not already own for

£30.6 million.[10] On 19 November 1996, in a defensive move, Vodafone purchased

Peoples Phone for £77 million, a 181 store chain whose customers were overwhelmingly

using Vodafone's network.[11] In a similar move the company acquired the 80% of Astec

Communications that it did not own, a service provider with 21 stores.[12]

In 1997 Vodafone introduced its Speechmark logo, as it is a quotation mark in a circle;

the O's in the Vodafone logotype are opening and closing quotation marks, suggesting

conversation.

19
On 29 June 1999 Vodafone completed its purchase of AirTouch Communications, Inc.

and changed its name to Vodafone Airtouch plc. Trading of the new company

commenced on 30 June 1999.[13] To approve the merger, Vodafone sold its 17.2% stake in

E-Plus Mobilfunk.[14] The acquisition gave Vodafone a 35% share of Mannesmann,

owner of the largest German mobile network.

Vodafone's original logo used until the introduction of the speechmark logo in 1997

On 21 September 1999 Vodafone agreed to merge its U.S. wireless assets with those of

Bell Atlantic Corp to form Verizon Wireless.[15] The merger was completed on 4 April

2000.

In November 1999 Vodafone made an unsolicited bid for Mannesmann, which was

rejected. Vodafone's interest in Mannesmann had been increased by the latter's purchase

of Orange, the UK mobile operator.[16] Chris Gent would later say Mannesmann's move

into the UK broke a "gentleman's agreement" not to compete in each other's home

territory.[17] The hostile takeover provoked strong protest in Germany and a "titanic

struggle" which saw Mannesmann resist Vodafone's efforts. However, on 3 February

2000 the Mannesmann board agreed to an increased offer of £112bn, then the largest

corporate merger ever.[17] The EU approved the merger in April 2000. The conglomerate

was subsequently broken up and all manufacturing related operations sold off.

On 28 July 2000 the Company reverted to its former name, Vodafone Group Plc. In

April 2001 the first 3G voice call was made on Vodafone United Kingdom's 3G network.

20
A map showing Vodafone Global Enterprise' footprint.      Vodafone Operating

Countries      Vodafone's partners and affiliates

In 2001 the Company took over Eircell, then part of eircom in Ireland, and rebranded it

as Vodafone Ireland. It then went on to acquire Japan's third-largest mobile operator J-

Phone, which had introduced camera phones first in Japan.

21
On 17 December 2001 Vodafone introduced the concept of "Partner Networks" by

signing TDC Mobil of Denmark. The new concept involved the introduction of Vodafone

international services to the local market, without the need of investment by Vodafone.

The concept would be used to extend the Vodafone brand and services into markets

where it does not have stakes in local operators. Vodafone services would be marketed

under the dual-brand scheme, where the Vodafone brand is added at the end of the local

brand. (i.e., TDC Mobil-Vodafone etc.)

22
Vodafone Global Enterprise

Global Enterprise is a business set up by Vodafone with the sole purpose of handling

Vodafone's multinational clients. It is the high end business to business section of

Vodafone group, and acts like an operating country (such as for example Vodafone UK).

Devices and services available in any operating country, are available to Global

Enterprise customers in the same country, and so Vodafone Global Enterprise are able to

offer a wide range of products. Vodafone Global Enterprise have a presence in over 65

countries and this number is expected to grow in future, as with the recent aqcuisition of

Ghana Telecom. Since its foundation in 2007, Global Enterprise has aimed to be a world

leader in managed mobility services. Vodafone Global Enterprise are headquartered in

Newbury, but do have operatives around the world; while many of Vodafone's marketing

employees are relocated to London, Global Enterprise' team will remain in Newbury.

Nick Jeffery leads Vodafone Global Enterprise. He led the creation of Vodafone Global

Enterprise in 2007 and continues to define the strategy and operational execution for

Vodafone's relationship with multi-national corporate customers. Global Enterprise have

a dedicated group of account managers, at both global and national levels, who look after

customers needs, and are supported by pre-sales and technical consultancy teams.

Products and Services include Enterprise Central, Telecomms Management, Global

Device Portfolio and Managed Mobility Services. In 2009 Vodafone Global Enterprise

was the winner of Best Mobile Enterprise Service at the GSMA Global Mobile Awards

2009.

23
Europe

Networks in Europe

Majority-owned Minority-owned No Ownership

Albania France Austria Belgium

Czech Republic Poland Bulgaria Channel Islands

Germany Croatia Cyprus

Greece Denmark Estonia

Hungary Finland Faroe Islands

Ireland Iceland Latvia

Italy Lithuania Luxembourg

Malta Rep. of Macedonia Norway

Netherlands Russia Serbia

Northern Cyprus Slovenia Sweden

Portugal Switzerland Ukraine

24
 Romania

Spain

Turkey

UK

In February 2002 Finland was added into the mobile community, as Radiolinja is signed

as a Partner Network. Radiolinja later changed its named to Elisa. Later that year the

Company rebranded Japan's J-sky mobile internet service as Vodafone live! and on 3

December 2002 the Vodafone brand was introduced in the Estonian market with signing

of a Partner Network Agreement with Radiolinja (Eesti). Radiolinja (Eesti) later changed

its name to Elisa.

On 7 January 2003 the Company signed a group-wide Partner agreement with mobilkom

Austria. As a result, Austria, Croatia, and Slovenia were added to the community. In

April 2003 Og Vodafone was introduced in the Icelandic market and in May 2003

Vodafone Italy (Omnitel Pronto-Italia) was rebranded Vodafone Italy. On 21 July 2003

Lithuania was added to the community, with the signing of a Partner Network agreement

with Bitė.

In February 2004 Vodafone signed a Partner Network Agreement with Luxembourg's

LuxGSM and a Partner Network Agreement with Cyta of Cyprus. Cyta agreed to rename

its mobile phone operations to Cytamobile-Vodafone. In April 2004 the Company

purchased Singlepoint airtime provider from John Caudwell (Caudwell Group) and

25
approx 1.5million customers onto its base for £405million, adding sites in Stoke on Trent

(England) to existing sites in Newbury (HQ), Birmingham, Warrington and Banbury. In

November 2004 Vodafone introduced 3G services into Europe.

In June 2005 the Company increased its participation in Romania's Connex to 99% and

also bought the Czech mobile operator Oskar. On 1 July 2005 Oskar of the Czech

Republic was rebranded as Oskar-Vodafone. Later that year on 17 October 2005

Vodafone Portugal launched a revised logo, using new text designed by Dalton Maag,

and a 3D version of the Speechmark logo, but still retaining a red background and white

writing (or vice versa). Also, various operating companies started to drop the use of the

SIM card pattern in the company logo. (The rebranding of Oskar-Vodafone and Connex-

Vodafone also does not use the SIM card pattern.) A custom typeface by Dalton Maag

(based on their font family InterFace) formed part of the new identity.

On 28 October 2005 Connex in Romania was rebranded as Connex-Vodafone and on 31

October 2005 the Company reached an agreement to sell Vodafone Sweden to Telenor

for approximately €1 billion. After the sale, Vodafone Sweden became a Partner

Network. In December 2005 Vodafone won an auction to buy Turkey's second-largest

mobile phone company, Telsim, for $4.5 billion.[18] In December 2005 Vodafone Spain

became the second member of the group to adopt the revised logo: it was phased in over

the following six months in other countries.

In 2006 the Company rebranded its Stoke-on-Trent site as Stoke Premier Centre, a centre

of expertise for the company dealing with Customer Care for its higher value customers,

technical support, sales and credit control. All cancellations and upgrades started to be

26
dealt with by this call centre. On 5 January 2006 Vodafone announced the completion of

the sale of Vodafone Sweden to Telenor. On February 2006 the Company closed its

Birmingham Call Centre. In 1 February 2006 Oskar Vodafone became Vodafone Czech

Republic, adopting the revised logo and on 22 February 2006 the Company announced

that it was extending its footprint to Bulgaria with the signing of Partner Network

Agreement with Mobiltel, which is part of mobilkom Austria group.

On 12 March 2006 former chief, Sir Christopher Gent, who was appointed the honorary

post Chairman for Life in 2003, quits following rumours of boardroom rifts. In April

2006 the Company announced that it has signed an extension to its Partner Network

Agreement with BITE Group, enabling its Latvian subsidiary "BITE Latvija" to become

the latest member of Vodafone's global partner community. Also in April 2006 Vodafone

Sweden changed its name to Telenor Sverige AB and Connex-Vodafone became

Vodafone Romania, also adopting the new logo. On 30 May 2006 Vodafone announced

the then biggest loss in British corporate history (£14.9 billion) and plans to cut 400 jobs;

it reported one-off costs of £23.5 billion due to the revaluation of its Mannesmann

subsidiary. On 24 July 2006 the respected head of Vodafone Europe, Bill Morrow, quit

unexpectedly[19] and on 25 August 2006 the Company announced the sale of its 25%

stake in Belgium's Proximus for €2 billion. After the deal, Proximus was still part of the

community as a Partner Network. On 5 October 2006 Vodafone announced the first

single brand partnership with Og Vodafone which would operate under the name

Vodafone Iceland and on 19 December 2006 the Company announced the sale of its 25%

stake in Switzerland's Swisscom for CHF4.25 billion (£1.8 billion). After the deal,

Swisscom would still be part of the community as a Partner Network. Finally in

27
December 2006 the Company completed the acquisition of Aspective, an enterprise

applications systems integrator in the UK, signaling Vodafone's intent to grow a

significant presence and revenues in the ICT marketplace.

Early in January 2007 Telsim in Turkey adopted Vodafone dual branding as Telsim

Vodafone and on 1 April 2007 Telsim Vodafone Turkey dropped its original brand and

became Vodafone Turkey. In addition , Vodafone Turkey also gives service in Turkish

Republic of Northern Cyprus. On 1 May 2007 Vodafone added Jersey and Guernsey to

the community, as Airtel was signed as Partner Network in both crown dependencies. In

June 2007 the Vodafone live! mobile Internet portal in the UK was relaunched. Front

page was now charged for and previously "bundled" data allowance was removed from

existing contract terms.[20] All users were given access to the "full" web rather than a

Walled Garden and Vodafone became the first mobile network to focus an entire media

campaign on its newly launched mobile Internet portal in the UK.[21] On 1 August 2007

Vodafone Portugal launched Vodafone Messenger, a service with Windows Live

Messenger and Yahoo! Messenger.

On 17 April 2008 Vodafone extended its footprint to Serbia as Vip mobile was added to

the community as a Partner Network and on 20 May 2008 the Company added VIP

Operator as a Partner Network thereby extending the global footprint to the Republic of

Macedonia. In May 2008 Kall of the Faroe Islands rebranded as Vodafone Faroe Islands.

On 30 October 2008, the company announced a strategic, non-equity partnership with

MTS group of Russia. The agreement adds Russia, Armenia, Turkmenistan, Ukraine, and

Uzbekistan to the group footprint.[22]

28
On 20 March 2009, it was announced that the group's Luxembourg partner has been

changed to Tango: the agreement with LuxGSM was not renewed in favour of Tango, the

Luxembourg unit of another partner network, Belgacom of Belgium.[23]

At the end of 2007 Vodafone Germany was ranked 6th in Europe by subscriber numbers,

whilst its Italian operation was listed as 10th. Vodafone UK was ranked 13th., whilst

Spain was listed in 16th. place [24]

29
 Company Profile
VODAFONEison established its presence in India in 1994, through a joint

venture with Max India Limited. In 1995, VODAFONEison Max Telecom became

the first operator in India to launch its cellular service.

Today, VODAFONEison is the one of the largest providers of cellular services in

India with presence in all the major regions - Orange in Mumbai and VODAFONE

in Gujarat, Kolkata, Andhra Pradesh, Karnataka, Delhi, Chennai, Haryana,

Rajasthan and UP(E).

It is also the country’s largest roaming operator, with a more extensive network in

India and around the world than any other operator.

It is part of the Hong Kong based multinational conglomerate VODAFONEison

Whampoa Limited, a Fortune 500 company, and one of the largest companies

listed on the Hong Kong Stock Exchange. Its operations span 36 countries

across the Asia Pacific region, Europe and the Americas.

VODAFONEison affiliates jointly account for the largest number of cellular

subscribers in India numbering over 4 million.

30
HISTORY AND DEVELOPMENT

VODAFONE’s presence in India dates back to late 1992, when they worked with

local partners to establish a company licensed to provide mobile

telecommunications services in Mumbai (formerly Bombay). Commercial

operations began in November 1995. Between 2000 and March

2004,VODAFONE acquired further operator equity interests or operating

licences, and now provide mobile services in 13 of the 23 defined service areas

across the country, with a further two areas at planning stage. These service

areas collectively cover 56% of India's population and 74% of current mobile

customers.

VODAFONE India has benefited from rapid and profitable growth in recent years.

VODAFONE had over 7.1 million customers by the end of 2004, making us the

fourth-largest private mobile operator in the country

31
AWARDS AND ACHIEVEMENTS

No. 1 in Customer satisfaction - TNS India Celltrack 4

Launched Punjab, UP West and West Bengal
Best Continued Campaign - OrangeTM - ABBY Awards

Added Punjab, Haryana, Rajasthan and UP (East) circles to India operations

Acquired ADIL, with operations in Rajastan, UP East and Haryana
'India's most admired Telecom Company' - Business World - IMRB

NFO MBL Best Performer in Customer Satisfaction

Won auction for licenses to operate GSM services in Karnataka, Andhra Pradesh

and Chennai
Acquisition of Delhi operations

Entered Calcutta and Gujarat markets through acquisition

VODAFONEison and Max established VODAFONEison Max

Corporate Structure

 VODAFONEison-Essar is a VODAFONEison Whampoa company. It is a

joint venture between the Hong Kong-based mobile group and the Indian

conglomerate Essar Group.

Financial and Operational Performance

32
  VODAFONEison declared revenues of HK$3.2bn in H1 2006 from its

Indian operations, up from HK$1.95bn in H1 2005.

 VODAFONEison-Essar had 18 m subscribers at end-march 2007

COMPANY TOWN
VODAFONE 214
Airtel 215
Idea 175

TOTAL NETWORK COVERAGE IN

ANDRA PRADESH

250
200
TOWNS

150 Series1
100 Series2
50
0
Hutch Airtel Idea
COMPANIES

Company Strategy

 VODAFONEison-Essar entered the mobile market in 1995 in the first

wave of operator licensing

33
 The operator has a presence in all four metro circles in India.

 The operator is expanding its business and increasing market share

through a combination of growth by acquisition (it has acquired the

operations of Fascel and Aircel in the year to September 2004) as well as

network investment. Nokia is currently increasing capacity on its networks

in Chennai, Andhra Pradesh and Karnataka, while also rolling out new

networks in West Bengal and western Uttar Pradesh.

 The operator has followed the 60% tariff cuts introduced by Reliance

Infocomm to the pre-paid mobile market in August 2004, in a bid to

maintain market share.

 The operator launched EDGE services in July 2004

 Recently (in 2006) Orange was renamed as VODAFONE, using a pink

background in advertising material instead of the previous orange colour.

Before the transition, Mumbai was overrun with billboards that simply said

"Bye". A week later, the same billboards, along with the rest of the

country, sported the VODAFONE tristar in a new, vivid pink. At the time,

Mr. Naveen Chopra, corporate vice president, group marketing,

VODAFONEison Essar, said, "The idea is just to refresh the brand, and

inculcate a new 'VODAFONE spirit'." But the brand makeover had less to

do with creating excitement and more with renouncing the Orange brand

to Orange Telecom and creating the new pan-Indian VODAFONE brand.

With Vodafone acquiring 67% of VODAFONE for U$11.1b, Vodafone is

going to replace the VODAFONE brand with the Vodafone brand.

34
35
Products and Services

 VODAFONE India provides 2G services using digital GSM technology. We

offer GSM voice and data services in all of the regions in which we

currently operate.

 In addition to basic mobile voice telephony services, we offer a wide range

of value-added and data services. These include voicemail, dual SIM card

capabilities, missed-call alerts, SMS, GPRS services and e-mail services.

VODAFONE India has roaming arrangements with some 250 international

and 46 domestic operators

 VODAFONEison-Essar currently offers GSM services across 12 circles in

India.

 It offers pre- and post-paid voice, MMS and internet access services.

 August 2004: VODAFONEison-Essar formally notified its intention to list

its Indian operations and all of its 2G businesses.

 July 2004: The operator launched EDGE services and began talks with

TV channels over content streaming

 July 2004: VODAFONEison-Essar launched services in Punjab

 March 2007 :

36
 It has been named the 'Most Respected Telecom Company', the 'Best

Mobile Service in the country', and the 'Most Creative and Most Effective

Advertiser of the Year'.

It now has operations in 16 circles accounting for 70% of

India's mobile customer base.

37
The challenges ahead

 VODAFONEison Essar's ARPUs have fallen slightly, from Rs 490 in the

April-June quarter to Rs 487 in the July-September quarter. And the

ARPUs of rivals like Bharti Televentures are picking up.

 In markets like Delhi, the revenues of rivals have grown faster than those

of VODAFONEison. Delhi accounts for over 21 per cent of

VODAFONEison Essar''s total revenues

 It does not have a pan Indian presence and is missing from lucrative

markets like Maharashtra and Tamil Nadu. Its value added services

advantage is becoming smaller as others have launched numerous

services.

On 11 February 2007 Vodafone agreed to acquire a controlling interest of 67% in

VODAFONE-Essar for US$11.1 billion, pipping Anil Ambani group's Reliance

Communications, Hinduja Group, and Essar Group, owner of the remainder.

VODAFONE is India's fourth largest mobile provider. The company has offered to

buy Essar's stake on the same terms.

“Today’s consumers do not want to hear the virtues of a brand, they are

interested in specifics and that’s what our campaigns always do.”

38
Performance Management

Performance management is an excellent method of helping organization deliver lasting

improvement. It does this by ensuring individuals, teams, and ultimately the organisation,

know what they should be doing, how they should be doing it and take responsibility for

what they achieve.

It is about placing the emphasis on managing, supporting and developing staff at all

levels in the organization. An integral part of this is the need to monitor performance,

reward staff that perform well, and challenge those who do not.

For performance management to work well it is crucial that senior management can

communicate effectively across the organisation and ensure that employees fully

understand the organization's key corporate objectives and the reasons behind them.

Benefits of Performance Management

Having an effective performance management system has multiple benefits for

organization, ultimately resulting in better, more efficient, services. These are:-

1. It means everyone knows where the organization is going, as there is a clear focus

on key objectives and priorities. This level of clarity helps to correctly direct

resources, which means there are less instances of over and under resourcing.

39
 2. It makes life more satisfying for employees because they know what is expected

of them, and how this fits into the bigger picture, but also that they can call on

extra support to help them to perform well.

3. As the whole emphasis is on meeting set criteria and meeting targets, it is easier to

monitor how services are performing and to take action to intervene and improve

where necessary.

4. It helps organization to meet their legal responsibilities in employment in terms of

health and safety, equality and diversity. Employees and the organization itself

will be bound by implied and explicit contractual terms, such as codes of conduct,

the duty of mutual trust and confidence and the duty to obey reasonable

instructions, as well as health and safety and equalities legislation. Legal issues

will also arise in cases where the organization seeks performance improvement or

decides to terminate employment on the grounds of the employee's incapability to

do their job.

Equality and diversity are important aspects of performance management. Not only does

the organization's managing diversity approach impact upon its overall performance

rating – through the Best Value Performance Indicators – it also impacts upon how

performance is managed within the organisation. A performance management approach

that recognises and promotes diversity, while supporting fairness and equity will ensure

that people are selected and developed on the basis of their capability to do the job.

40
Developing the right organisational attitude

Effective performance management requires an ongoing dialogue with staff. A number of

simultaneous actions are needed to help develop an organisational attitude where

performance is managed well and really leads to service improvement. 

It is important to make sure employees know the key organization objectives and

priorities, what they should focus on and how they can contribute. Being given too many

initiatives and plans tends to make employees feel overloaded.

Justify the benefits of making an effort to manage and improve performance, as

employees need to know how it can help them deliver. You may wish to make these

benefits service specific or more general such as ensuring resources are targeted where

they are most needed, improving services and systems, better 'joining up' of activities

across the organization or helping develop employees to perform their roles more

effectively.

Ensure that employees who perform well are rewarded and those who underperform are

challenged. It is critical that organization back up what they say about performance by

what they do. Employees are then more likely to feel that the way they are dealt with is

fair and open and will also take the issue more seriously.

The performance management framework

41
Clear, consistent systems and procedures are needed to support the ongoing dialogue with

employees on performance management and provide feedback on how this is impacting

on organization service delivery. The emphasis should be on developing an approach

tailored to help the organization and its employees to perform well which is not too

complex for the benefits it delivers. Whatever the approach, everyone should know where

to find information about performance management and be able to access it whenever

they need to.

Performance management needs to operate at organisational, team and individual level if

it is to be effective. This means that organisational objectives inform the development of

team and individual objectives, and individuals and teams can feedback from the

frontline to support the development of future organisational objectives and plans. Using

this approach helps to ensure that support and development opportunities are appropriate,

gives a wider perspective on service issues, helps to identify any barriers to

implementation and can assist with determining better measures of effective

performance.

The performance management process is cyclical, consisting of three stages, which are:

 Defining and planning: identifying what type of performance is required and how

it can be met.

 Delivering and monitoring: providing appropriate support and development and

checking progress.

42
  Evaluating: assessing whether or not performance is to the required standard,

recognising where standards have been met and seeking improvements where

they have not.  

Readiness for performance management

It is generally accepted that performance management is a key factor for achieving high

quality service delivery. However, for many organizations it remains an extremely tough

issue to get right, as there are many factors that contribute to whether the performance

management approach is effective, including senior management commitment, clear

organisational objectives and systems and processes that help rather than hinder.

The Employers' Organisation develops a questionnaire that organization can use to

identify whether or not they are ready for the performance management challenge and

whether any further work needs to be undertaken to prepare.

Organization can decide, against a number of statements related to areas such as

commitment, processes and skills, whether they are ready for performance management,

nearly ready, some way off or a long way off.

From this, organization can identify the priority areas that need to be improved before

performance management can be implemented effectively.

43
Ten steps to effective performance management

There are ten basic steps that organization needs to take to develop and implement an

effective performance management system. The emphasis should be on developing a

strategy tailored to help the organization perform well which is not too complex for the

benefits it delivers.

1. Develop business plans

Business planning must take account of what can realistically be delivered with the

organization resources available and consider the people management implications. Once

organization plans and priorities have been established these then need to be translated

into service, team and individual performance plans. This is a highly skilled task that is

critical for the performance management process to work well. It is important that

managers are given appropriate support to carry this out effectively.

2. Establish what aspects of performance need to be measured

Any national or local performance indicators being used must be clearly communicated

to staff and elected members, along with other measures being used to define

performance. The focus should be on measuring what matters and trying to keep these

measures to a reasonable number.

3. Set up systems to monitor and evaluate

Systems need to be set up to ensure that performance can be monitored and evaluated

throughout the year to ensure that it is improving service delivery. It is therefore essential

44
that the performance management approach supports the organization's organisational

development and people management strategies, so that it helps rather than hinders

progress.

4. Define the general performance expectations of employees

This may be done through a combination of approaches such as the use of competences,

policies and procedures. Line managers should be given specific responsibilities for

managing performance. Effective ways of doing this are making it an explicit part of their

job role and incorporating how to manage performance into management training

programmes.

In return there should be clear and consistent expectations of what is expected of

employees while they are working for the organization.

5. Agree specific performance objectives

Organization plans and priorities need to be translated into service, team and individual

performance objectives.

Agreeing individual performance and employee development needs is normally carried

out using a combined performance management and staff development process. This

approach provides the framework for helping managers to translate service and team

plans into individual plans and objectives and agree how these will be met. Individual

plans and objectives are most effective when both manager and employee agree them.

Objectives should be specific, measurable, agreed, realistic and time bound (SMART).

45
6. Develop an internal communications system

It is normally accepted that to be effective messages need to be communicated in a range

of different ways that really target the group of staff you are trying to reach. There is a

wide range of different approaches that can be adopted to ensure staff is kept in contact

with key performance issues. For example, there are staff briefings; meetings; lunch time

seminars; use of the intranet; mini articles or stories in staff magazines; posters; bulletin

boards; email alerts; line management and supervision meetings.

Conducting regular staff surveys and running a suggestion scheme are also important

ways of ensuring that employees have opportunities to feedback on a wide range of issues

that will impact directly or indirectly on organisational performance.

7. Ensure the performance management system is in place, is well understood and

working effectively

A performance management system is traditionally used to set objectives, identify

support needs and measure progress against objectives. For it to work effectively it needs

to be clearly understood by both managers and employees. This means ensuring that

managers have access to guidance and training to ensure that they manage performance

effectively throughout the year and employees at all levels within the organization have

the necessary support, guidance or training to enable them to actively engage in the

performance management process.

The performance management system should also be regularly reviewed to ensure that it

is achieving what is required.

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8. Support employees to help them perform well

Effective induction and probation processes for new employees are extremely important

in setting the right expectations for performance on both sides. If this early stage is

managed well it may be possible to intervene to prevent or minimise individual capability

issues later on through personal development or redeployment. Feedback from this

process may also highlight problems with job design or recruitment processes, which

then need to be rectified.

Responsibility for meeting staff development needs may be addressed in the team or

service or may be fed back to a central HR function for action. Whatever the approach,

the organization needs an overview of its organisational capability and how it plans to

address any gaps that will hamper the achievement of its objectives. This strategic human

resource management would normally be the responsibility of the HR function.

Developing employee capacity to deliver organization objectives is likely to be achieved

in a variety of ways. All employees, even those who have been in the same post for some

time, should be encouraged to consider how they are performing and what else they could

learn or do differently to deliver better services. In some cases these needs will be

adequately met through attending training courses but there are many other possibilities,

such as job shadowing, mentoring, e-learning, working on projects or reading manuals.

Wherever possible the employee should be given the opportunity to agree the most

suitable option.

47
Performance needs to be actively managed and monitored throughout the year. An

essential part of this dialogue is the giving and receiving of feedback. For this to work

effectively the organisational climate must encourage the sharing of both success and

failure. Without this employees will be reluctant to comply and the quality of the

feedback may be lacking. As well as managers, employees at all levels in the

organization may also need support, guidance or training to enable them to actively

engage in the performance management process.

9. Seek performance improvement

Of course, there will be circumstances where performance does not meet the required

standard. At organisational level, this will mean identifying what the barriers are to

effective performance and putting in place a plan to deliver improvement. At both team

and individual level the principles will be the same, but it may be more difficult to

manage, as individual sensitivities and complexities may be at the fore.

Having in place a clear process for dealing with inadequate performance is important.

However, it is essential that the process does not take over from the desired outcome,

which is to seek performance improvement. Identifying the reason for inadequate

performance is the first step. From this the organization can determine further action,

which may involve disciplinary procedures; additional training or support; monitoring

and review mechanisms; redeployment; changing job roles or in some cases dismissal. It

is also important that learning from these actions is taken on board, for example to

improve future performance management mechanisms or selection methods.

48
Formal capability or disciplinary proceedings take time, effort and resources, which

could otherwise be targeted at more positive interventions, such as recognising good

performance. If performance management is embedded into day-to-day management

practice it is likely that inadequate performance will be managed and improved before it

gets to this stage; that is why following the performance management cycle on an

ongoing basis is so important.

Organization should also review job design and work flexibility as ways of improving

performance.

10. Recognise and reward good performance

This is the part that many organisations forget; instead they take good performance for

granted and focus on those who have not met the standard. However, to retain motivation

and continuously improve, it is essential that good performance is recognised and where

appropriate, rewarded. Recognition and reward will mean different things to different

people; for some financial reward in the form of pay rises or bonuses may be important,

whereas for others recognition that their contribution has made a difference will be

enough.

When determining what will be the most appropriate reward the organization will need to

understand what motivates their workforce and how they can meet this need. Pay systems

and processes will be important, but it will also be necessary to identify other reward

mechanisms such as opportunities for development and career progression.

49
Recognising performance is also about sharing success stories across the organisation and

highlighting how good performance helps the organisation as a whole. This may also help

with sharing good practice and learning about what works.

Action checklists

Performance management strategies only work if each group within an organisation

knows exactly what they are meant to be doing:

Members should:

 Recognise the impact performance management has on service delivery

improvement

 Endorse the overall performance management strategy

 Ensure that resources are targeted appropriately

 Be exemplars of performance management practice in the way they manage the

performance of senior managers

 Identify and reflect on their own development needs

 Regularly monitor and review how the strategy is progressing and how it is

improving services

Senior managers should:

 Recognise the impact performance management has on service delivery

improvement

50
  Ensure that corporate visions, objectives and plans are communicated down to

service, team and individual performance level

 Take a lead role in the development and implementation of the organization's

performance management strategy

 Ensure that resources are targeted appropriately

 Be exemplars of good performance management practice

 Set targets and monitor managers' performance against the strategy's objectives

 Identify and reflect on development needs for themselves and their teams

 Regularly monitor and review how the strategy is progressing and how it is

improving services

Line managers should:

 Recognise the impact performance management has on service delivery

improvement

 Ensure that organisational objectives are understood by team members

 Select the best people to perform particular jobs and tasks

 Regularly monitor and feed back to employees on their performance

 Seek advice and support in order to improve performance management practice

 Monitor how well their team is doing against the strategy

 Identify and reflect on development needs for themselves and their teams

 Evaluate the impact performance and development opportunities are having on

service improvement

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The HR team should:

 Support the development of the performance management strategy and ensure that

it reflects the wider people management context

 Ensure that all HR activities support the strategy

 Continuously develop their skills and capacity to help people manage

performance

 Be exemplars of good performance management practice

 Make sure that the HR function is able to support and deliver against the strategy's

targets

Employees and their representatives should:

 Be involved in the development and implementation of the strategy

 Ensure that they understand where their individual objectives fit with

organisational, service and team objectives

 Identify and reflect on their own development needs

 Ensure that their job meets service delivery needs and feedback any issues

Regularly communicate with their manager.

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 PERFORMANCE MANAGEMENT IN VODAFONE

What is work?

Work involves anticipating and planning; and it involves adaptability to suit varying

needs, rather than merely using what is accessible.It is something performed to meet

 Basic physiological needs

 Achievement needs

 Self-actualization needs

Work may be mental or manual, blue collared or white collared…

More important is the way it is done, the commitment and effort that has been put in and

the result/outcome. Mere enjoyment of the work would not translate to good work. There

is always primary objective and multiple secondary objectives. Striking a perfect balance

will be the factor responsible for the successful accomplishment of the work.

What is performance?

Means outcome achieved or accomplishment at work. Performance mainly consists of

two aspects

 Behavior

 Outcome

Iiccha jnana kriya

Carkhuff’s equation for human productivity

Productivity = Responsiveness+ Initiative+ Processing

Excellence is not a skill. Its is an attitude

53
Efficacy = efficiency + effectiveness

capacity or power to produce a desired effect

the ratio of the output to the input of any system

Ability to achieve stated goals or objectives, judged in terms of both output and

impact

Performance-Potential matrix (effort concentration matrix)

Performance

High

Low

Low High
Potential
What is performance management PfM

PfM is a way of systematically managing the performance of individual, group and/or the

organization based on the predetermined targets and measurable objectives. It is a holistic

process which envisage setting performance targets, measuring performance, conduction

gap analysis and root cause analysis and using the resultant leading and lagging

indicators for the performance enhancements techniques like training, compensating

management.

‘PfM is a means of getting better results from the organization, teams and individuals by

understanding and managing performance with in an agreed framework of planned goals,

standards and competencies requirements. It is a process of establishing shared

understanding about what is to be achieved and an approach to managing and developing

people in a way that increases the probability that it will be achieved in a short and longer

term.’

54
- Armstrong

Business performance management (BPM):

Business performance management (BPM) is a set of processes that help organizations

optimize business performance. BPM is seen as the next generation of business

intelligence (BI). BPM is focused on business processes such as planning and forecasting.

It helps businesses discover efficient use of their business units, financial, human, and

material resources.

History

An early reference to non-business performance management occurs in Sun Tzu's The

Art of War. Sun Tzu claims that to succeed in war, one should have full knowledge of

one's own strengths and weaknesses and full knowledge of one's enemy's strengths and

weaknesses. Lack of either one might result in defeat. A certain school of thought draws

parallels between the challenges in business and those of war, specifically:

 Collecting data

 Discerning patterns and meaning in the data (generating information)

 Responding to the resultant information

Prior to the start of the Information Age in the late 20th century, businesses sometimes

took the trouble to struggle to collect data from non-automated sources. Businesses then

lacked the computing resources to properly analyze the data, and often made commercial

decisions primarily on the basis of intuition.

55
As businesses started automating more and more systems, more and more data became

available. However, collection remained a challenge due to a lack of infrastructure for

data exchange or to incompatibilities between systems. Reports on the data gathered

sometimes took months to generate. Such reports allowed informed long-term strategic

decision-making. However, short-term tactical decision-making continued to rely on

intuition.

In modern businesses, increasing standards, automation, and technologies have led to vast

amounts of data becoming available. Data warehouse technologies have set up

repositories to store this data. Improved ETL and even recently Enterprise Application

Integration tools have increased the speedy collecting of data. OLAP reporting

technologies have allowed faster generation of new reports, which analyze the data.

Business intelligence has now become the art of sieving through large amounts of data,

extracting information and turning that information into actionable knowledge.

In 1989 Howard Dresner a research analyst at Gartner (until 2005, now Chief Strategy

Officer at Hyperion Solutions Corporation), popularized "BPM" as an umbrella term to

describe a set of concepts and methods to improve business decision-making by using

fact-based support systems.

The term "BPM" is now becoming confused with "Business Process Management", and

many are converting to the term "Corporate Performance Management" or "Enterprise

Performance Management".

56
What is BPM?

BPM involves consolidation of data from various sources, querying, and analysis of the

data, and putting the results into practice.

BPM enhances processes by creating better feedback loops. Continuous and real-time

reviews help to identify and eliminate problems before they grow. BPM's forecasting

abilities help the company take corrective action in time to meet earnings projections.

Forecasting is characterized by a high degree of predictability which is put into good use

to answer what-if scenarios. BPM is useful in risk analysis and predicting outcomes of

merger and acquisition scenarios and coming up with a plan to overcome potential

problems. BPM provides key performance indicators (KPI) that help companies monitor

efficiency of projects and employees against operational targets.

Metrics / Key Performance Indicators

BPM often uses Key performance indicators (KPIs) to assess the present state of business

and to prescribe a course of action. More and more organizations have started to make

data available more promptly. In the past, data only became available after a month or

two, which did not help to suggest to managers to adjust activities in time to hit Wall

Street targets. Recently, banks have tried make data available at shorter intervals and

have reduced delays. For example, for businesses which have higher operational/credit

risk loading (for example, credit cards and "wealth management"), A large multi-national

bank makes KPI-related data available weekly, and sometimes offers a daily analysis of

57
numbers. This means data usually becomes available within 24 hours, necessitating

automation and the use of IT systems.

Most of the time, BPM simply means use of several financial/nonfinancial metrics/key

performance indicators to assess the present state of business and to prescribe course of

action. Some of the areas which top management analysis could gain knowledge from

BPM:

 Customer-related numbers:

o New customers acquired

o Status of existing customers

o Attrition of customers (including breakup by reason for attrition)

 Turnover generated by segments of the Customers - these could be demographic

filters.

 Outstanding balances held by segments of customers and terms of payment - these

could be demographic filters.

 Collection of bad debts within customer relationships.

 Demographic analysis of individuals (potential customers) applying to become

customers, and the levels of approval, rejections and pending numbers.

 Delinquency analysis of customers behind on payments.

 Profitability of customers by demographic segments and segmentation of

customers by profitability.

58
This is more an inclusive list than an exclusive one. The above more or less describes

what a bank would do, but could also refer to a telephone company or similar service

sector company.

Principles of PfM (Armstron)/ Features of an effective PfM System?

 Transparency

 Managed development

 Mutual respect

 Fairness and equity

 Organizational climate

 Effective context management

Concerns and scope of Traditional PfM system… PA?

Concerns

 Remedying poor performers and performance

 Bridging gaps on performance expectations

 Securing equitable rewards and punishments decisions from the management

 Softening performance pressures through appropriate planning, scheduling and

delegation.

Scope

Scope is limited to performance measurement by means of time and work-study.

59
A short history of Performance Management

Appraisal systems have been around since the industrial revolution when they were used

to measure the production of a workforce. There were clear definable objectives, produce

x number of widgets by Friday, they were by default ‘SMART’ and very much tied

reward as the workers salary was often based upon weekly production.

In today’s service economy the connection of objectives to production starts to look a

little bizarre as often there is no direct connection between service delivery and effort

required to produce it. For example software development is not based upon the number

of lines of code produced but on the quality of the finished product, sales are rarely based

upon the number of calls made but more likely on the relationship between the salesman

and the customer, and the quality of material produced by a marketing professional will

be almost impossible to quantify.

So Why Do We Still Have Goal Based Appraisal Systems?

This is mostly due to work conducted in the 1950’s and 1960’s around the area of

objectives. Research was done into the effectiveness of objectives on individual

performance and it was found that by allowing individuals to set Specific, Measurable

and Realistic goals that were possible to Achieve and had a Time limit imposed upon

them then the chances are they would perform better than being given less defined sets of

objectives.

60
Much of this work was done in the Psychology lab and involved highly motivated

research students. Although this work has been validated in real life the results are not as

clear cut as were originally thought and a number of other variables were found that

appear to have been left off of the list

61
Appraisal Systems – Where Does it All Go Wrong?

So, we have a measurement system based upon 19th century innovation in mass

production and a goal setting mechanism based upon 1950’s psychology research, not a

particularly good start. So what’s left? There are a whole range of issues around the

appraisal process which also need to be considered, the top concerns are:

1. Halo and Horns – This is something often mentioned in literature regarding

job interviews but appears to be completely ignored when appraisal time

comes around. The Halo and Horns effect is the appraisers personal view of

the appraised based not upon cold hard facts but on the unconscious internal

appraisal by the appraiser. Two individuals both with exactly the same

production record can be given widely varying reviews based upon the

perception of the reviewer skewing the results in favour of a particular

personality type.

2. Good cop/Bad cop – The quality of an appraisal system depends heavily upon

the consistency of the reviewers. In an ideal situation all individuals within an

organisation will be reviewed by one individual, however in anything but the

smallest business this is impractical and you are left with the impact of human

variance.

3. Hearsay or Heresy – One of the biggest issues in large organisations is history,

not of the company although that is important, but of the individual and like

all histories it is written by the winners and not the losers. In an appraisal

62
 situation the history created around an individual can be very destructive and

will influence the Halo and Horns effect.

4. Voter Apathy – When the psychological work on objective setting was done

in the 1950’s and 1960’s it was based upon the study of conscientious and

motivated individuals. The later work on objectives in the organisations

highlighted as one of the critical issues (and one that has been largely ignored)

of the enthusiasm and motivation of the staff for the appraisal system itself.

The concept of buy-in is an important one and one that is often overlooked by

corporations introducing review systems. The staff being reviewed must agree

with the process and accept it as useful otherwise the impact of any review

will be of little use.

5. R.E.S.P.E.C.T – This is a reversal of the Halo and Horns effect in that this

applies to the reviewer and not the reviewed. For any feedback to be accepted

and effective it needs to come from a respected source, it needs to be

consistent and it also needs to be timely.

6. Timing is everything – Perhaps the greatest failing of organisations when

reviewing the performance of staff (whether it be good or bad) often the delay

between the behaviour and the review for both good and bad behaviour often

to a point where the issue is no longer relevant.

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 7. Feedback, the breakfast of champions – Feedback is always considered an

important part of the review process however feedback, and it’s counter-part

Constructive Criticism have been overused as ways of telling people how they

got it wrong, rather than what they got right, and often the feedback process

completely misses the point of only focusing on bad behaviour rather than

reinforcing good behaviour which is a better use of the process.

So, is it all gloomy for the appraisal system? Should they be scrapped all

together? Perhaps measuring staff production is not the way to go? Maybe there is

a better approach.

Building a Better Mouse Trap

There are some simple steps that can revolutionise the way that staff are managed

throughout the year but they do require some effort on the part of the business however it

can pay real dividends in staff motivation and improving performance.

1. Catch people doing things right – this is old advice and yet in many

organisations it has been ignored or just become management mantra without

embracing the fundamental concepts. Not only is it about identifying when

people do a good job but actually rewarding it. If your organisation values

innovation, then reward the innovators even if you don’t like or agree with the

innovation.

2. No-one makes mistakes – if you really want to create an outstanding appraisal

process then start with the premise that there are no mistakes just learning

experiences. This can sound a little silly, however if you believe that people

64
 do the best they can then this ceases to be a stumbling block and if someone

makes a ‘mistake’ it is probably a misunderstanding of their capability.

3. PRISM/SMART – Over the years much has been made of SMART (Specific,

Measurable, Achievable, Realistic and Time bound) and these have worked

for many however there are some things that are lacking from this and

PRISM© objectives are much more effective

Personal – For any objective to be effective it needs to be set by and for

the individual. Many organisations like to set corporate objectives that

everyone signs up to, however in reality unless there is a real motivation to

then most individuals will just pay lip service to the idea. Objectives set by

and for the individual are automatically bought in to by that individual.

Realistic – In the old SMART world objectives had to be Realistic and

Achievable, in reality for something to be truly realistic it has to be

achievable. In the PRISM© world for a goal to be realistic it must be

achievable.

Interesting – For anyone setting objectives for themselves or in the

corporate space an objective that is interesting (and enjoyable) is far more

likely to be fulfilled than something that an individual has to do.

Specific – As has been found by all of the goal setting experiments of the

past 50 years a goal needs to be specific for it to be really effective. For a

goal to be truly specific it needs to include a completion date and is

therefore time bound.

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 Measurable – In PRISM© terms this means what will you be, do or have

when the objective has been reached. What tangible thing can you wave in

front of people to show you have achieved your goal.

4. Give real feedback – This means telling people when things have gone badly

or that their behaviour is causing a problem but it is not ‘constructive

criticism’. If someone does a good job 95% of the time and for 5% of their

time they make a hash of it then focus on the 95% rather than the 5%.

Appraisal processes and appraisers should think carefully before they focus on

the 5%-10% of an individual that is ‘under performing’ lest they undermine

the 90% that is performing. Perfection is not something that should be aimed

for - improvement is.

From a tactical role people management and PfM has gained a strategic role.

MERIT RATING

Merit is

 Any admirable quality or attribute; "work of great merit"

 Deservingness: the quality of being deserving (e.g., deserving assistance); "there

were many children whose deservingness he recognized and rewarded"

 Deserve: be worthy or deserving; "You deserve a promotion after all the hard

work you have done"

A method for appraising the performance of an employee with respect to his or her job. It

frequently serves as a basis for making pay adjustments, promotion decisions, or work

66
reassignments. A system for measuring the difference of an individual risk by some

standard in order to reflect the difference in the rate.

A common method which has long been in existence for measuring performance of

employees in organizations is Merit Rating, where performance levels are judged

according to various criteria.

The performance management cycle is an ongoing process that includes:

o establishing expectations and desired outcomes;

o monitoring performance;

o providing feedback and coaching; and

o assessing an employee’s work continuously throughout the year.

The “final annual steps” in the performance management cycle include conducting

performance evaluations, making merit pay determinations, and communicating with

employees about their overall performance including their performance management

rating.

The Performance management Process

The performance management process typically consists of four inter-related steps as

follows:

1. Establish a common understanding between the manager (evaluator) and

employee (evaluatee) regarding work expectations; mainly, the work to be

accomplished and how that work is to be evaluated.

67
 2. Ongoing assessment of performance and the progress against work expectation.

Provisions should be made for the regular feedback of information to clarify and

modify the goals and expectations, to correct unacceptable performance before it

was too late, and to reward superior performance with proper praise and

recognition.

3. Formal documentation of performance through the completion of a performance

and development appraisal form appropriate to the job family.

4. The formal performance and development appraisal discussion, based on the

completed appraisal form and ending in the construction of a Development Plan.

Merit Rating for Academic Employee

Performance Categories and Merit Steps

Performance Evaluation Categories

Excellent

Commendable

Satisfactory

Unsatisfactory

Merit Steps

Steps

Excellent 3

Commendable 2

Satisfactory 1

Unsatisfactory 0

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1. EXCELLENT:

Met the requirements for “Commendable”: Significantly surpasses expectations in all

aspects of

position/responsibilities demonstrates highest knowledge and skills. Achieved the highest

possible levels of excellence in achievements and competence in teaching, research and

service.

Examples are: National publications, major research achievement, national recognition,

made exceptional contributions to the department, college or university; considered a

leader among colleagues.

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2. COMMENDABLE:

Met the requirements for “Satisfactory”: Successfully met, and in some areas,

significantly exceeded established goals and objectives. Achieved high levels of

achievements and competence in the areas of teaching, research and service.

3. SATISFACTORY:

Met the established goals and objectives for the evaluation period; in a few instances,

may have missed some and exceeded others but, on balance performs competently.

4. UNSATISFACTORY:

Did not meet established goals and objectives for the evaluation period; has not

performed competently or consistently. Experienced productivity and competence in one

or more areas of teaching, research or service.

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 QUESTIONNAIRE PRESENTATION WITH PIE CHART

( FOR OFFICERS)

Question No. 01
0%
0%
10% 1
0%
2
3
4
5
90%

1:- This pie chart is shows about 90% of officers are aware of current

performance management System & 10% are not aware of current PAR System.

Question No. 02

5%
5% 1
0%
15%
2
3
4
75% 5

2:- According to 75% the current P.A. System is two tire System ,according
Question No. 18
15% ,Three tire system ,5% four tire system and 5% are not aware current

performance
30%
appraisal0%
System. 20% 1
2
3
71
4
10%
40% 5
 Question No. 03

2% 0%
4% 1
34%
2
3
4
60%
5

3:- According to 34% two tire systems consist of appraisee & Appraiser, 60%

IA & RA, 4% HOD & GM & 2% immediate superior & HOD.

Question No. 04 0%
0%
0%
15% 1
2
3
4
85% 5

4:- About 85% of officers are performance managements assessed by point

system, 10% through Mark System 0% are not aware any group.

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 Question No. 05

8% 2%
10% 1
2
3
50%
4
30% 5

5:- About 50% of Officers agree that task Setting provides objectively in

appraising their performance less than 30% of the officers are not fully agree

with the statement 10% are neutral & disagree 2% are not fill the questionnaire.

Question No. 06

0%
0%
5% 0% 1
2
3
4
5
95%

6:- About 95% officers are says yes for completing Quarterly Task setting in

time ,rest due to some reason its not completed in time, such cases; lack of

seriousness & ambiguity.

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 Question No. 07
2%
3%
2% 1
28% 2
3
4
65%
5

7:- Above 60% of the officers agree that self appraisal system Proves to be

effective & rest of officers do not completely agree with it.

Question No. 08
2%
0%
10% 1
10% 2
3
4
78% 5

8:- About 78% of officers are says that appraiser and appraisee should be

responsible for ensuring objectivity and reducing biasness the “Performance

management system ,10% are says appraiser & appraisee and peer & 10%

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says appraiser & appraisee and peer & subordinate ,2% are not fill the

questionnaire.

Question No. 09

10% 2% 1
16% 42% 2
3
4
30% 5

9:- More than 40% officers are agree that skill possessed by an officers

vary ,30% are partially agree and 16% are Neutral ,less than 15% are not agree

with its.

Question No. 10
2%
0%
0%
18% 1
2
3
4
80% 5

75
10:- About 80% officers are getting regular feedback on their performance but

less than 20% are not getting regular feedback.

Question No. 11

0%
10%
0% 1
20% 2
3
4
70% 5

11:- About 70% of officers are agree that feedback is beneficial for improving

their performance ,20% are partially agree and 10% are neutral.

Question No. 12
1%
0%
10% 1
24% 2
3
4
65%
5

76
12:- 65% of the officers accepts that current PAR is an effective tool for

evaluating the employee performance,20% partially agree with this and 10% are

neutral.

77
 Question No. 13
0%
0%
20% 0% 1
2
3
4
80% 5

13:- About 80% of officers are accept that current PAR System reflect the

training need, 20% are not accepts this.

Question No. 14

10% 0%
40% 1
2
3
4
40% 5
10%

14:- 40% of the officers consider that the relevance of PAR system in deciding

promotion, 10% are says deciding incentives and 40% agree with training and

development, 10% are accepting the programme succession planning.

78
 Question No. 15

10% 1%

12% 1
2
3
4
52% 5
25%

15:- According to 52% of officers are accepts the existing PAR system ensure

due recognition talented employee in term of promotion ,rewards and others,

28% are partially agree and 12% are neural ,10% are disagree.

Question No. 16

10% 0%
10%
1
2
3
4
25% 55% 5

16:- More than 55% of officers are completely agree that the existing PAR

system is helpful in wholesome development of employee and 25% are partially

agree,10% disagree, 10% are neutral.

79
 Question No. 17

0%
0%
10% 0%
1
2
3
4
5
90%

17:- About 90% of the officers are completely satisfied with the current PAR

system, rest 10% are not satisfied with the current performance management

system.

Question No. 18

30% 0% 20%
1
2
3
4
5
10% 40%

18:- About 20% of the officers are say management is responsible to your

innovativeness and 40 % are says only personal problem, 10% are tell the official

problem 30% are says career aspiration.

80
 ANALYSIS OF QUESTIONNAIRE
 Suggestion from employees for the effective implementation of PAR system

 Job Description & key Result Areas should be identified & appraisee should

be answered accordingly.

 While doing job Rotation a person’s core competence should be major criteria

for decision.

 Assessment even by peer, subordinates & customers 360 degree PA system

should be implemented in order to make PAR system more focused, rather

than relation driven.

 Project based performance & measurements (six sigma in work place & on

personal level) should be encouraged in Appraisal system.

 Ideation & vision statement will interweavn them; strategy, transformation &

leadership should be encouraged & assessed in PAR system.

 Effective need based training programme must be conducted on regular

intervals like time bound task setting is formulated in PAR system, there must

also be time made appraiser equally awakened. This will also help in making

the existing PAR system more effective & purposeful.

 Deptts where work & task are not known, Like-Plant Maintenance & Hospital,

PAR system should be changed because jobs or tasks except regular work

can’t be assigned to individual.

81
 Suggestion point should be considered & implementation total. As seen that

the suggestion are some times ignored by higher authorities. As IA is dealing

with persons whose PAR is filled & knows form very near.

 The present PAR system may be quite effective provide the weakness

strengths training requirements improvement suggestions are properly

monitored for taking necessary remedial action measures & fro suitable

placement in the organization i.e. right person at right place.

 The task should be reviewed & discussed systematically by IA & RA &

necessary action should also be taken at proper time.

 Ra should take necessary step in fulfilling Appraisee request regarding

training, job rotation.

 Based upon the feedback. The training & Development needs of an individual

should be met & should not be limited only to award promotion.

 There must be a provision that appraisee may come to know the final rating

after PRB i.e. more transparency is required.

 Timely submission of quarterly task may be included to each offer’s task &

marks to be given on that.

 Employees must be given proper knowledge & made aware of PAR system in

BEL.

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 FINDINGS

 The PAR system has been reviewing time to time to improvise the ways to

assess the effectiveness, potential, development need & career sketch of the

individual for the management to formulate HRD programme into meet

organization needs.

 There is problem in collecting the PAR forms back more often the forms were

not received on time. The main problem is therefore of coordination.

 Manager has to perform a very daunting list of time consuming tasks standing

with recalling which worker need to be reviewed each month, arranging

appraisal meeting with them, collection the relevant performance data, filling

out the appraisal forms & documenting the employees performance.

 PA is not actually for workmen it’s basically for the officers. Previously

workmen were judged on the ground of ability, attendance & conduct through

gradation system but this time the new marking system is introduced.

 The culture of confidentiality persists due to which PA will never be a readily

undertaken exercise. Adverse remarks are communicated to employees in

writing confidentially by the reporting officers.

 IA, RA & PRB consist of senior officers than the appraisee. Subordinate,

peer, customer or suppliers are not included in the PA committee. Thus the

Appraisal system is by higher level.

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84
 CONCLUSION
Based on the vast study & analysis I can say that the Top

management role needs a tremendous change towards the role of

facilitator. Every manager in the organization hierarchy at his own position

has the same role of facilitator. In fact in the present scene. The managers

are facilitators. The role of facilitator has a high demand on individual to be

a continuous learner, i.e. there is a transition from…………………….owner.

………………………Manager ……………………Leader

I conclude that for the LPG (Liberalization, Privatization and

Globalization) of business, Empowerment strengthens the ongoing

capacity for successful action under changing circumstances.

Thus to develop self esteem, organization has to satisfy the

employees need for higher levels of job satisfaction & an overall improved

quality of work life consistent will the dignity of the employees as a human

being.

I hope that this project is of utmost value to all who are in this field &

I also feel that the knowledge gained during this training would be helpful

to me in future.

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86
 SUGGESTIONS
 Workmen PAR should also be developed as of officers & they should be

made aware about it.

 For the technical one column should also be included in the P.A. format which

should concern about the time availability of facilities provisions required for

technical workmen, officers in order to carry out & completion of job if any.

 This would turn make IA / RA equally responsible & transparency in PAR

system.

 Emphasis should be given to measuring the employee’s performance i.e.

what the man does rather than what he is (merit rating). The important thing is

to be aware of his strengths. What can he do? And what has he done?

 Self Appraisal system should thoroughly reviewed by the I.A., RA & Senior

RA as the appraisee would not be able to assess themselves but the

concerned authorities assessment of the appraisee should be impartial & up

to the mark.

 Extra care must be taken by the authorities while describing the performance

of appraisee, as the attributes used in this section are not the part of specified

traits for technical & non-technical personnel. Not only the deficiency should

be pointed out in this section but if the appraisee have fair better than usual it

should also be mentioned.

87
 Multirater Feedback Mechanism. Regular feedback must be given to

employees. Identify areas for both organizational & individual improvement

through 360-degree process. Promote team building by using this Multirater

feedback mechanism

 360-degree appraisal is an excellent means of providing feedback to

employees because it entails obtaining information from more than one group

of people. All those who form the role set member (those who has working

relationship will the appraisee) assess the appraisee on a standard format.

The appraisees are taken form the superiors, subordinates & colleagues. This

encourages quality consciousness, teamwork orientation & more participative.

 “Give a man fish. He will eat it. Train a man to fish. He will his family,” the

technique of training has been a key factor & a major tool used to achieve the

objectives of HRD. Training should be base on an assessment of the needs

of different groups & individuals. The training needs should flow from PAR

system. PAR helps in identifying directions in which individual should be

trained & developed.

 Whenever an individual is sponsored for training he should be told

categorically the reasons for sponsoring him & the expectations of the

organization from him after he return form the programme.

88
 Performance analysis should be made before making any comment.

“Performance Analysis “ is a sound alternative of finding ways & means of

improving the employee organizational performance & identifying

development & growth needs.

 A positive emotional & professional climate should be created in workplace

for the employee to progress & review himself through “Performance Review”

(feedback & counseling).

 Virtual HR: HR Deptt. Can automate the PAR system with Internets. They can

link corporate business with the goals of the individual employee & generate

meaningful information from the vast data collected through out the

organization.

 The system can save managers the trouble of having to remember a whole

lot of things. Once the manager completes the form, he / she can instantly

route it to the central HR information system where it is stored for all

authorized parties to see.

 Such automated systems are very handy in case of 360-degree performance

evaluation. It frees HR Deptt. From needless paper work & allows human

resource to devote its resources to far more important things.

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90
 QUESTIONNAAIRE

PERFORMANCE MANAGEMENT VODAFONE.

Designation. ________________Department. ________________

Grade, scale ________________

1. Are you aware with the current “Performance management system” of

VODAFONE.

(a) yes (b) No

2. The current Performance management system is?

(a) Two tire system (b) Three tire system

(c) Four tire system (d) None aware

3. Two tire system Consist Of

(a) Appraisee &Appraiser (b) Ir & Ra

(c) Hod & Gm (d) Immediate superior & Hod

4. Performance management Of Employee Is Assessed By

(a) Point system (b) Mark system

(c) Grade system (d) Not aware

91
Opinion About Features Of Performance management System

5. Task setting by appraisee and appraiser provides objective while

appraising the performance management of the appraisee

(a) Agree (b) partially agree

(c) Neutral (d) disagree

6. Whether the quarterly task setting assignment completed by the 15 th of first

month of each quarter if no give the reason

(a) Yes (b) No

7. Self Appraisal System proves to be effective while appraising the

appraisee

(a) Agree (b) Partially agree

(c) Neutral (d) Disagree

8. Who in your opinion should be the responsible for ensuring objectivity and

reducing baiasness the “Performance management” system?

(a) Appraiser and Appraisee.

(b) Appraiser, Appraisee & peer.

(c) Appraiser, Appraisee, peer, & subordinates.

9. Skill possessed by an Appraiser vary as the moves from one grade to

another.

(a) Agree (b) Partially agree

(c) Neutral (d) Disagree

92
10. Are you getting regular feed back on your performance from your

Appraisal?

(a) Yes (b) No

11. Feed back is beneficial for improving your performance

(a) Agree (b) Partially agree

(c) Neutral (d) Disagree

Effectiveness of “Performance management” system

12. Current “Performance management” system is an effective tool for

evaluating the employee‘s performance

(a) Agree (b) Partially agree

(d) Neutral (d) Disagree

13. Does current “Performance management” system reflect the training need

of an employee?

(a) Yes (b) No

Relevance of “Performance management” system

14. What is your opinion is the relevance “Performance management”

system?

Deciding promotion (b) Deciding incentives

(c) Training & development (d) programme Succession planning

15. The existing “Performance management” system ensures due recognition

talented employee in terms of promotion, rewards and others

(a) Agree (b) Partially agree

93
 (c) Neutral (d) Disagree

16. Do you think that existing “Performance management” system is help full

in wholesome development of employee?

(a) Agree (b) Partially agree

(d) Neutral (d) Disagree

17. Are you satisfied with the current “Performance management” system

(a) Yes (b) No

18. Would you say management is responsible to your

(a) Innovativeness (b) Personal problem

(c) Official problem (d) Career aspiration

Give your suggestion for effective implementation of Performance management

system in VODAFONE.

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 BIBLIOGRAPHY

Books

 Manuals And Files Of VODAFONE

 Research methodology ----------- Devandra Thakur

Deep & Deep Publication Pvt. Ltd. Year -2006.

 Principles and Techniques of Personnel Management –Udai Pareek

Himalya Publishing House Delhi Year -2006

WEB. Sites

 www.Vodafone.com /

 www.google.com / performance management system.

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