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. 1 1.2 INTRODUCTION ABOUT THE COMPANY Vodafone 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 John Bond 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 Vittorio Colao (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 2 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 Italy, 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; 3 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 4 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.