CHAPTER- 1 INTRODUCTION

1.1 INTRODUCTION ABOUT THE STUDY The ability to use appraisal to develop and motivate employees is a core management skill. Regular, constructive feedback on performance is vital if staff is to build on their strengths, achieve their full potential, and make the maximum contribution to their organization. Appraising staff equips you with all skills and techniques you need to conduct successful appraisals. It clearly explains the key aims and benefits of the appraisal process, and leads you step-by-step through the preparation, management, and follow-up of the appraisal interview. The section is packed with advice to help you encourage open discussion, interpret body language, build confidence, deal with performance problems, and more. During and after world war-1, the systematic performance appraisal was quite prominent. Credit goes to Walter dill Scott for systematic performance appraisal technique of man to man rating system (or merit rating). It was used for evaluating military officers. Industrial concern also used this system during 1920 and 1940‟s for evaluating hourly paid workers. However with the increase of training and management development programs from 1950‟s management started adopting performance appraisal for evaluating technical, skilled, professional and managerial personnel as a part of training and managerial development programs. With this evolutionary process, the term merit rating and been charged into employee appraisal or performance appraisal. This is not mere change in the term but a change in the scope of the activity as the emphasis of merit rating was limited to personnel traits, whereas performance appraisal covers result, accomplishment and performance. Therefore performance appraisal enables employee to get incentive treatment according to their potential, sincerity and capabilities. They get motivated by which, performance appraisal benefits not only employee but also the management in the form of greater productive efficiency.

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1.2 INTRODUCTION ABOUT THE COMPANY was formed in 1984 as a subsidiary of Racal Electronics Plc. Then known as Racal Telecom Limited, approximately 20% of the company's capital was offered to the public in October 1988. It was fully demerged from Racal Electronics Plc and became an independent company in September 1991, at which time it changed its name to Vodafone Group Plc.Following its merger with Air Touch Communications, Inc. („Air Touch‟), the company changed its name to Vodafone Air Touch Plc on 29 June 1999 and, following approval by the shareholders in General Meeting, reverted to its former name, Vodafone Group Plc, on 28 July 2000.

THE LEADERS Meet the board Sir became Chairman of Vodafone Group Plc on 25 July 2006 having previously served as a Non-Executive Director. The Deputy Chairman, John Buchanan, is the nominated senior independent director and his role includes being available for approach or representation by directors or significant shareholders who may feel inhibited from raising issues with the Chairman. He is also responsible for conducting an annual review of the performance of the Chairman and, in the event it should be necessary, convening an annual meeting of the non-executive directors.

The executive directors are (Chief Executive) and Andy Halford. Board Members 1 John Buchanan - Deputy Chairman 2 Andy Halford - Chief Financial Officer 3 Alan Jebson 4 Nick Land 5 Anne Lauvergeon 6 Simon Murray 7 Luc Vandevelde 8 Tony Watson 9 Philip Yea

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Mobile is always at the heart of what the company do, but now the company are moving into integrated mobile and PC communication services. The company are doing that in two ways – wirelessly through 3G and HSDPA (High-Speed Download Packet Access), but also using fixed line broadband services like DSL (Digital Subscriber Line). The company customers benefit from a complete Vodafone experience in and out of their homes and offices. They are notified about email with the company consumer push email service, access existing instant messaging services on the move, and share images and video captured on their handsets. The company offer a suite of products that, starting with voice calls, offers the company customers an alternative to a traditional fixed telephone line. Vodafone Zuhause in Germany and Vodafone Casa in , provide the company customers with an easy-to-use mobile service, combined with low-cost fixed line telephony and DSL (Digital Subscriber Line) broadband. The company have extended the company reach into the office by delivering richer Business applications and integrated fixed and mobile services, such As higher speed internet access. With developments in technology the company can provide integrated mobile and PC offerings to give the company customers consistent experience whether they are at home or on the move.

Research and development (“R&D”) The Group R&D function comprises an international team for applied research in mobile and internet communications and their related applications. Group R&D teams are located in Newbury, Maastricht, Munich, California and Madrid, and there is an affiliated team in Paris belonging to Vodafone‟s associated undertaking in France, SFR. A small team was set up at the end of 2007 in the Vodafone Beijing office to work in close collaboration with China Mobile and a number of Chinese vendors.

Function of Group R&D Group R&D works beyond the traditional established markets of Vodafone in search of technology based business opportunities by:  delivering a systematic programme of demand inspired research and development in wireless and internet communications that is positioned between basic research and commercial product development;

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 leading Vodafone‟s work with technical standards bodies and its intellectual property activities; and  Providing a route for start-up companies to engage with Vodafone. Group R&D is also in the process of establishing a laboratory in Newbury to evaluate start-up technologies. Typically, Group R&D starts working on developments that are expected to be introduced into the business in three to five years, and leads them until a year or so before full commercialization. Currently the horizon covers some significant business developments that can already be anticipated. For example, Group R&D leads the introduction of wireless technology beyond 3G and is researching the next phase of the emergence of the internet as a personal communications platform – including radio technologies for accessing the internet in emerging markets. Governance is provided by the Group R&D Board, which is chaired by the Group R&D Director and consists of the chief technology officers from six of the operating subsidiaries in Europe, the heads of Business Strategy and Global Terminals and a representative from EMAPA.

Group R&D work programme The emphasis of the Group R&D work programme is on providing technology analysis and a vision that contributes directly to business decisions, enabling new applications of mobile communications, technology for new services and research for improving operational efficiency and quality of the Group‟s networks. This is done by:  pioneering the adoption of new technologies, business opportunities and innovations through technology analysis, trials, invention and prototypes;  making the Group aware of market opportunities or threats posed by new technologies and business models and helping the Company to exploit or resist them;  providing technology leadership by working with the industry to define and standardize the technology Vodafone uses; and  Securing intellectual property and technology ownership for the Group.  The work of Group R&D is delivered through a portfolio of programmes and cross industry activities with a substantial number of trials, demonstrations and prototypes. All work is set in a business and social context, and must lead

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to intellectual property rights or to Vodafone having significant influence on the technology it will deploy in the future. Group R&D also provides leadership for funding research into health and safety aspects of mobile communications and technical leadership for the Group‟s spectrum strategy. The main themes currently being researched are as follows:  the next generation of mobile technologies;  consumable software for mobile phones;  electronic news media; and  New GSM based services. There have been several significant advances during the 2008 financial year including:  next generation technology field trials have been announced with Verizon Wireless and China Mobile and are expected to begin in summer 2008;  a system has been designed and standardized to enable the SIM in GSM phones to control near field communications for transport ticketing and other applications, with commercial trials planned for late 2008;  demonstration of mobile software, social networks and the open source innovation platform called Vodafone Beta vine at the Mobile World Congress and at Cebit; and  Research into the application of mobile communications to health and well being and to energy use.

The R&D programme provides the Group with long term technical policy, strategy and leadership, as well as providing technical underpinning for the Group‟s public policies and government relations. It is shared with all Group functions and Vodafone operating companies. Commercialization of Group R&D results is through submissions to international standards bodies, intellectual property filings and directly with Vodafone operating companies.

Collaborative work Much of the work of Group R&D is done in collaboration with others, both within the Group and externally, with the Group‟s traditional suppliers and increasingly with

5 other companies in the communications, media and internet industries. During the 2008 financial year the following has been achieved:  a research collaboration was started with IBM which has led to the development of a mobile private social network called BuddyCom;  a research agreement was also established with Huawei;  a continuing programme of work with academic institutions, which includes student placements in Vodafone laboratories during summer vacations;  the continued development of Vodafone , a web based research and innovation platform;  the hosting of an academic conference where academic partners were brought together to launch a new programme – 3D internet; and  Academic collaborations in India have started.

INVESTMENT PLANS The planned $2 bn capex in the next two years announced by Vodafone, following the acquisition, may not bring in good results if they want to gain significant market share as its rivals-Bharti and Reliance have decided to increase their capex during the fiscal 2007 itself. Reliance may plough in $2.5 bn in fiscal 2007-08, while around $2.5 bn could be the investment from Bharti Airtel. Vodafone‟s target to achieve 20- 25% market share by 2010-11 and market penetration of more than 40% may be realistic. The operational plan focuses on the following objectives: Expanding distribution and network coverage, lowering the total cost of network ownership, growing market share, driving a customer focused approach, etc.started

Company Overview 2007  December A consortium led by Vodafone Group is awarded the second mobile phone license in Qatar Indus Towers Limited; an independent tower company in India is formed between Vodafone, Idea and Vodafone  October Vodafone agrees to acquire Italia Spa and Tele2 Telecommunication Services SLU from Tele2 AB Group

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 May Vodafone announces completion of the acquisition of Hutch Essar from Hutchison Telecommunications International Limited Vodafone launches first ultra- low cost handsets

 February , Vodafone's partner in Kenya announces the launch of M-PESA, an innovative new mobile payment solution that enables customers to complete simple financial transactions by mobile phone. Vodafone agrees to buy a controlling interest in Hutchison Essar Limited, a leading operator in the fast growing Indian mobile market. Vodafone announces agreements with both Microsoft and Yahoo! to bring seamless Instant Messaging (IM) services to the mobile which can be accessed from both the PC and mobile handsets. Vodafone signs a series of ground-breaking agreements which will lead to the mobilizing of the internet. YouTube agrees to offer Vodafone customers specially rendered YouTube pages on their mobile phones. With Google, Vodafone announces its intention to develop a location-based version of Google Maps for. With eBay, Vodafone announces it is to offer the new eBay mobile service to customers, With MySpace.com Vodafone announces an exclusive partnership to offer Vodafone customers a MySpace experience via their mobile phones

 January Vodafone reaches 200 million customers 2008

 December Vodafone completes acquisition of additional 4.8% stake in Polkomtel

 November Vodafone to acquire an additional 15% Stake in Group which will increase Vodafone's shareholding from 50% to 65%. Vodacom Group will be listed on the Johannesburg Stock Exchange and the remaining 35% of Vodacom Group will be demerged by Telkom to its shareholders.

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 October Vodafone launches the new exclusive BlackBerry Storm Smartphone from Research in Motion.

 August Completion of the acquisition of a 70 percent stake in Ghana Telecom.

 July Vittorio Colao succeeds Arun Sarin as Group Chief Executive Vodafone acquires a 70% stake in Ghana Telecom for $900 million.

 June Vodafone and Apple(R) announce the iPhone 3G will be available in Australia, Italy, New Zealand and Portugal on July 11 and in the Czech Republic, Egypt, Greece, India, South Africa and Turkey later this year. Vodafone announces that Verizon Wireless, its affiliate in the US, has agreed to acquire Alltel Corp. for a total enterprise value of US$28.1 billion in cash and assumed debt.

 May Vodafone announces that it has agreed to acquire the 26.4% interest in Arcor that it does not already own from Deutsche Bahn AG and Deutsche Bank AG for a cash consideration of €474 million.

 February Vodafone carries out technical trials of 3G femtocells to assess how effectively the technology is able to deliver wireless high-speed data and voice services inside homes and business locations. Safaricom and Vodafone announce that M-PESA, the innovative mobile money transfer service launched in March 2007, now has 1.6 million customers.

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2009  June Completion of merger between Limited and Hutchinson 3G Australia Pty Limited.

 March Telefonica and Vodafone announce milestone Pan European collaboration to share network infrastructure in Germany, Spain, Ireland and the UK.

 February Hutchinson and Vodafone agree to merge Australian telecom operations to form a 50:50 joint venture.

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CHAPTER - 2 REVIEW OF LITERATURE

2.1 Introduction Every individual has his or her own viewpoints towards a similar issue. Hence, there is similar issue. Hence, there is enough and more scope for men who are interwoven in the organizational structure to enter into appraising while working together. Thus is appraising inevitable whenever two or more human beings work together. For healthy and effective functioning of a human being in an organization one should be adept in handling appraising An in resolved appraising might trigger a long line of troublesome consequences for the person as well as to the organization. Hence it is imperative to study about the various techniques and strategies adopted by persons in appraising resolving strategies among the organizational supervisors. Therefore a scientific enquiry in this area is meaningful and essential. The present study is one such attempt. This review of literature involves collection of some literature and works previously done in the same area and other related areas. By doing this the researcher can make a study to explore new dimensions in the same area and add to the body of knowledge. The researcher can make a study to explore new dimensions in the same area and add to the body of knowledge. Several approaches to appraising management have been proposed: -

Pattarind and Cheston (1979) made a study on appraising management. The objective of the study was to find out the most adopted style among the respondents among methods like forcing, problem solving, compromise and avoidance. They studied a total of 52 incidents from the findings it was evident that the majority of the incidents the respondents used the problem solving method and there was not one bad result.

Crosby and Sehere (1981) have argued that third party intervention can succeed if the organizational climate factors are favourable, for such intervention. They have

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