25-08-2017, 09:32 PM
EFFECTIVENESS OF PERFORMANCE APPRAISAL SYSTEM IN INSURANCE SECTOR
INTRODUCTION:
The Insurance industry in India has seen an array of changes in the past one decade
.The economic scenario which emerged after globalization, privatization and liberalization
has thrown anew challenge before the insurance sector . Insurance , essentially in an
arrangement where the losses experienced by a few one extended over several who are
exposed to similar risks. Insurance is a protection against financial losses arising on the
happenings of an unexpected event. Insurance companies collect premium to provide security
for the purpose. In simple words it is spreading of risks among many people.
Performance appraisal system was started as a method for the justification of salary
and wages. Every organization desires to develop a performance appraisal system, which
consists of an established procedure for evaluating the work of employees on a regular basis.
Effective appraisal system serves not only to determine how well an employee is working at
his job, but also to decide on the ways to improve his performance. It describes the general
policies and factors for the administration of performance in an agency. An appraisal program
is a combination of specific procedures, methods, and requirements for planning, monitoring
and rating performance.
TOOLS USED FOR DATA COLLECTION AND ANALYSIS
As the study is empirical, it mainly depends on the primary data. Primary data is basically
from the field with the help of a questionnaire. Simple random sampling technique was
adopted for selecting the employees and the sample size is 130. Percentage analysis and t -
test were used to analyze the data and to get the results. The employees was selected from
different insurance companies such as Reliance General Insurance ,Bajaj Allianz General
Insurance and Star Health Insurance Companies etc.All the important factors affecting the
performance appraisal sytem in insurance sector were incorporated in order to make it a
representative sample. Employees were selected from each level. To study the historical
background of insurance sector, secondary data was used. In order to study the effectiveness
of performance appraisal system the views of employees regarding their appraisal system
were considered.
CONCLUSION:
The study ―EFFECTIVENESS OF PERFORMANCE APPRAISAL SYSTEM IN
INSURANCE SECTOR‖ concludes that performance appraisal system is the most important
tool for an organization.
There are various methods which are used by the organization to appraise the
performance of their employees.
Performance appraisal increases the motivation level of the employees.
They can be effectively used for planning purposes and to identify the problems and
obstacles affecting employee‘s performance.
Every organization has its own performance appraisal methods which are designed to
evaluate the performance of employees in an organization.
It also identifies the training and developmental needs.
It serve not only to determine how well an employee is does his or her job but also to
decide the ways to improve the performance.
Through this system, employees are motivated to work efficiently and effectively in
an organization.
Appraisal help to create a system of motivation and rewards based on performance