summer training report neeraj
DESCRIPTION
research on cbTRANSCRIPT
SUMMER TRAINING REPORT
ON
Performance Appraisal System of AMUL AUTO COMPONENTS PRIVATE LIMITED
FOR PARTIAL FULLFILMENT OF THE DEGREE
OF
MASTER OF BUSINESS ADMINISTRATION
(MBA)
Submitted to
Submitted to
DEPARTMENT OF MANAGEMENT STUDIES,
Kumaun University, NainitalUttarakhand`
Submitted By:
NEERAJ SINGH DEWARI
MBA 2-YEAR (IIIrd Semester)
2013
STUDENT’S DECLARATION
I NEERAJ SINGH DEWARI declare that the work which being presented in the project report entitled “Performance Appraisal System with special reference to AMUL AUTO COMPONENT PRIVATE Limited” further; I declare that this project is my original work and the analysis and findings are for academic purpose only. This project has not been presented in any seminar or submitted elsewhere for the award of any degree or diploma.
NEERAJ SINGH DEWAI
Date:
Place:
ACKNWOLEDGEMENT
It is a pleasure to have the opportunity to extend my heartiest thanks to everybody who helped me through the successful completion of my project report, which is a great source of learning and experience for me.
I would like to thank Mr. Diwakar Pant, for cheerfully and generously giving his time advice and efforts and also for sharing his experiences with me which helped to me increase my awareness level and my confidence.
TABLE OF CONTENTS
Chapter no. Particulars Page no.
CERTIFICATE. 2
DECLARATION BY THE STUDENT 3
ACKNOWLEDGEMENT. 5
1 INTRODUCTION 6
2 REVIEW OF LITERATURE 7
3 OBJECTIVES AND RESEARCH METHODOLOGY 7
4 DATA ANALYSIS AND INTERPREATION 8
5 FINDING AND RECOMNDATION 10
6 CONCLUSION 11
7 LIMITATIONS 13
8 BIBLOGRAPHY 15
A ANNEXURE 17
CHAPTER-1
INTRODUCTION
Performance management is an integral part of every organization. Several critical decisions of the
organization depend upon the outcome of performance appraisal like training and developmental
requirements, compensation decisions, motivational sessions, promotions, succession planning etc. The
system used for apprising the employees of any organization depends upon the nature of the industry,
technologies used as well as the policies of the organization.
Company considers its human resources as the most valuable resources for its growth in line With this
AMUL AUTO COMPONANT PVT. LTD. PANTNAGAR is committed& professional development.
Performance appraisal seeks to achieve the following. To set realistic & challenging targets/ key
performance area on annual basis for the individual. To assess employee’s performance based on person
at attributes. Job performed targets achieved/ specific achievement. To assess the strengths, weakness&
potential of the employeePerformance appraisal is that, “It is the systematic evaluation of the individual
with respect to his or her performance on the job & his potential for development.” A more
comprehensive definition is,” Performance appraisal is a formal structured system of measuring &
evaluating an employee’s job related behaviors & outcomes to discover how & why the employee is at
present performing on the job & how the employee can perform more effectively in the future so that the
employee, organization & society all benefit.” Under Performance appraisal we evaluate not only the
performance of a worker but also his potential for development.
PERFORMANCE APPRAISAL SYSTEM
MEANING:
The Reporting and Reviewing Officers should assess the Performance of the Executive; how far results have been achieved during the Review period and the causes for success and failure. Personality is important in any job but judgment on Personality or Character traits not passed except, in so far such qualities are directly relevant in any executive’s job.
Appraisal results lead to improved job Performance and the acquiring of new skills and knowledge among the subordinates. This qualifies them for broader Responsibilities, more Rewarding assignments, and Promotion, thereby satisfying their developmental needs.
LITERATURE SURVEY
Performance Appraisal system in any Organization depends substantially on five factors –namely, concept, criteria, culture and contingency. Each of these aspects is briefly considered here
CONCEPT
The Performance dimensions are several. They include Duties, Responsibilities and behavioural Traits. For each of the relevant dimensions and Sub – dimensions thereof standard will have to be fixed based on past performance, industrial engineering principles or any other base. Relative weightage have to be assigned to each of these in turn. Performance Appraisal involves at least two persons/ parties: the Appraiser (who does the Appraisal) and the Appraisee (whose performance is being appraised). In the context of Performance Appraisal, the Appraisee expects the following from the Appraiser
The next page shows the Table that gives the idea of what Appraisee expects and what Appraiser should be
Appraise expect Appraiser should
To know what his duties and responsibilities are
To know what is expected of him and whether the expectations are reasonable enough
To know how he is doing
To have appraiser’s help, if need be
Rewards to be commensurate with performance
Prepare job description
Facilitate appraisee to set goals/ target
Analyze results with appraise
Reward for good result
Reward for good results
Proper appreciation of the mutuality and reciprocity in the roles is vital for clarity about the concept of performance. This has indeed been highlighted in the recent examples of Memorandum of Understanding, which is a framework instrument to analyze the Performance of chief executives of public sector organizations in India
CRITERIA
Several Performance measures such as output, quality, punctuality, cost control contributions job knowledge, discretion, initiative, team work, resourcefulness, honesty and Leadership qualities are usually reckoned as some of the criteria against which performance is assessed. These words often carry multiple meanings. In most cases setting involves a combination of personal date (e.g. Good or Bad work habits by perceiving by the superior), output data (quantity than costs and quality) and judgmental date (e.g. about knowledge of the job, ability to get along peers). However, judicious one would like to be, there would often be problem with perceived subjectivity (whether real or not), which needs to be deal with carefully. Additional care needs to be taken in assigning and communicating weights to different factors, identifying standards for comparison and fixing responsibility. There is also the dilemma over weightage t processes (activities) and outcomes (results).
CONTEXT
The top management philosophy values and belied system in the Organization influence the notions about the Organization (Theory X or Theory Y type assumptions, for instance) and the type of control, motivation and communication system. Those who do not hold positive attitude about the work culture, habits or competence of their subordinates may tend to perpetuate a system of management control based on direction and control while others who havePositive notions about the subordinates may like to introduce management systems based on consensus and control.
CULTURE
The culture of people in general seems to affect appraisal system. Studies and commentaries on Indian organizations seem to point to a pattern where the loyalties of employees is more to the people than to the tasks or to organizations; people are power - centered in the sense that those in authority would like to influence their subordinates and subordinates in their own interest are willing to accept a dependency syndrome. Where these observations hold good,
there is every danger that Performance Appraisal turns out to be more personal than system or Organization oriented.
CONSITENCY
The most important aspect of any information and control mechanism in any Organization is
the use it is put to and how? Unless there is a systematic effort to link Performance Appraisal to
other sub-systems of human resource management such that all personal decisions use the
performance appraisal data as a critical input, it becomes difficult to impart seriousness into the
system. The result would be apathy on the point of both the appraiser and the appraisee to the
entire process, which eventually would become a mere ritual. Therefore, it is important for
organizations to say and show that organizational rewards are contingent upon performance.
OBJECTIVES OF PERFORMANCE APPRAISAL
ORGANISATIONAL GOALS
I. Generate Manpower Information;
II. Human resource development;
III. Efficiency & Effectiveness;
IV. Developing harmonious;
V. Employee Relations;
VI. Control rational; &
VII. Compensation structure.
INDIVIDUAL GOALS
I. Personal development;
II. Satisfaction;
III. Involvement; &
IV. Fair & Just Compensation
MUTUAL GOALS
I. Growth & Development;
II. Harmony;
III. Effectiveness; &
IV. Profitabilit
PURPOSES
1. To create & maintain a satisfactory level of performance.
1. To provide information for making decision regarding lay-off, retrenchment, etc.
2. To guide the job changes with the help to continuous ranking.
3. To contribute to the employee growth & development through training, self management
development programmes.
4. To facilitate for testing & validating selection tests, interview techniques through comparing their
scores with performance appraisal ranks.
5. To ensure organization effectiveness through correcting employee for standard & improved
performance, & suggesting the change in employee behavior.
6. To facilitate fair & equitable compensation based on performance.
7. To help the superior to have a proper understanding about their subordinates.
PROCESS OF PERFORMANCE APPRAISAL
Establishment of performance
Communication expectation to employees
1-ESTABLISMENT OF PERFORMANCE: We need some kind of measure again which we are going
to compare the performance of employees. Some of these standards are based on job description should
be clear enough to be measured & understood by everyone standards are the expectations.
1. COMMUNICATE EXPECTATION TO EMPLOYEES: Standards need to be communicated
is employees so that they know what is expected of them & how will they about it. It has to be
Initial corrective action
Measures actual performance
Compare actual performance with standard
Discuss appraisal with employee
received by employees & manager should receive the feedback so that he comes to know whether
employees have understood the intention of communication.
2. MEASURES ACTUAL PERFORMANCE: After setting standard you will some critical to
measure the performance of employees.
3. COMPARE ACTUAL PERFORMANCE WITH STANDARD: This is done to see if any
discrepancy exists & if so then how will it be rectified.
4. DISCUSS APPRAISAL WITH EMPLOYEE: Performance of employee is reviewed & then
manager has to convince the employees about his judgment. He conduct meeting with employees
for this purpose.
5. INITIAL CORRECTIVE ACTION: If there is any deviation in performance then suggestive
corrective action can be provided to the employee
COMPANY PROFILE
Company Profile and History of Amul Group of Companies
Contact Details:-
Amul Auto Components Private Limited
PlotNo.11,Pantnagar,Rudrapur -263153, Uttarakhand, India
History of Amul Group of Companies
Founded in 1988, Amul is a leading manufacturer of connecting rods, crank shafts, cylinder blocks, cylinder heads and camshafts. Amul is headquartered in Rajkot, Gujarat, India. Amul has grown steadily in sales as well as variety of parts manufactured since its inception. Amul enjoys a key partner status with its major customers. A TS 16949 certified company, Amul is a supplier to leading OEM’s in India and abroad.
Amul Auto Components Private Limited
Rudrapur, Uttarakhand
Fact Sheet
Year of Establishment :2007
IndiaMART Member Since :2012
Nature of Business: Manufacturer
Legal Status of Firm: Private Limited Company
Vision
To be a Amul Auto Components Private Limited
category innovator with most advanced products and services.
Mission
To strive towards making brand Amul Auto Components Private Limited,the highest top of the mind recall in theAmul Group of Companies with strongest brand fuller utilization of resources and most satisfied customer base
LAYOUT OF UNIT -1
UNIT-2
Amul auto components private limited situated in Rudrapur Uttarakhand is one of the important part of Amul group of companies. Amul auto components private limited was established in the year 2007. It is a automobile engine spare parts manufacturer company. Amul auto components private limited manufactures of handle, engine guard, step pillion, side stand and dress guaIt is a member of IndiaMART since 2012.
IndiaMART is an Indian internet limited company headquartered in Noida, India. The company is best known for its B2B marketplace which matches buyers and suppliers. IndiaMART attracts 1.6 million daily visitors with over 9.3 million daily pageviews. It was also termed as India's largest B2B marketplace
with a 60 present market share by IAMAI. IndiaMART was founded in April 1996 by Mr Dinesh Agarwal as a company specialising in developing websites and later evolved into a directory. The full name of company is IndiaMART InterMESH Limited (ISO 9001:2008 certified).
About ISO/TS 16949 Certification:
The ISO/TS16949 is an ISO technical specification aiming to the development of a quality management system that provides for continual improvement, emphasizing defect prevention and the reduction of variation and waste in the supply chain. It is based on the ISO 9001 and the first edition was published in March 2002 as ISO/TS 16949:2002. It was prepared by the International Automotive Task Force (IATF) and the "Technical Committee" of ISO. It harmonizes the country-specific regulations of Quality-Management-Systems. About 30 percent of the more than 100 existing automobile manufacturers affiliate the requirements of the norm but especially the large Asian manufacturers have differentiated, own requirements for the quality management systems of their corporate group and their suppliers. TS16949 applies to the design/development, production and, when relevant, installation and servicing of automotive-related products. It is based on ISO 9001.
The ISO/TS16949 can be applied throughout the supply chain in the automotive industry. A certification takes place on the basis of the certification rules issued by the IATF International Automotive Task Force. The certificate is valid for the length of three years and must be confirmed annually by an IATF certified auditor (3rd Party Auditor) of an accredited certification body, such as NSF International, Perry Johnson Registrars [PJR], TÜV Rheinland, TÜV NORD, Bureau Veritas, Det Norske Veritas BA, BSI Group, DQS, LRQA (Lloyd's Register Quality Assurance), Quality Audit & Certification, SGS S.A., and UTAC. Thereafter follows the re-certification for another three years with a fresh annual confirmation. A certificate according to ISO/TS 16949 is intended to build up or enforce the confidence of a (potential) customer into the system and process quality of a (potential) supplier. Today, a supplier without a valid certificate has very little chance to serve a Tier 1 supplier and certainly no chance to serve a car manufacturer (OEM) with standard parts.We are one of the leading manufacturers of Connecting Rods , Crank Shafts, Cam Shafts, Cylinder Block, Cylinder Head as well as various Auto parts for Automotive & Internal Combustion engine application for about decade Amul is a powerful combination of Tradition, Ethos and Experience. Today as one we're smarter, faster and stronger than ever and determined to become more so. Amul is a leading global manufacture of auto motive components serving almost every major vehicle manufacturer worldwide. Headquartered in Rajkot, Gujarat- INDIA, has state-of-the-art manufacturing units at various locations in India with teamwork of 2000 plus. The group has created a value based enterprise uniquely positioned to provide customers with innovative solutions that deliver best vehicle performance, quality and value for their product. We've continued to transform ourselves through aggressive productivity improvement, leading-edge technologies and sustained customer relationships. Having dedicated ourselves on knocking down any barriers that come across our way from reaching the potential. We have moved quickly, decisively and are committed towards creating the group image & customer values.Today our list of customers includes almost all automobile giants in Indiaincluding Tata Motors, Ashok Leyland, New Holland Tractors Ltd., Mahindra & Mahindra, Eicher, Swaraj Engines, Greaves, Simpson & Co., Same Deutzandalso customers from other areas like Generators, Compressors &DieselEngines. Cummins India Ltd., Ingersoll Rand, Kirloskar Engines, Voltas,Tecumseh Products (I) Ltd. to name some of them.We also export our goods to overseas O.E.M. customers like Iveco-Italy,Lombardini - Italy, Same Deutz - Italy, Chinook Compressors -
Italy, Knorr-Bremse -France, FMC - USA, John Deere - USA, Our goods are premiumproducts in countries like USA, UK, Italy, Germany, France, Egypt, Dubai,Africa and other over 60 countries in the after markets of Mercedes, Perkins,Cummins, Toyota, Land Rover, John Deere, Ford, Deutz, Cater Pillar, Isuzuand other renowned international.
DESIGN
Amul has the ability to design a connecting rod from engine data. Several qualified and experienced engineers work in the Design Cell.Latest and relavent application software is used by our designers.Amul also has the ability to design and manufacture various fixtures and gauges required in the manufacturing process.
FORGING
Amul is supported by a state-of-the-art connecting rod forging company, Adico Forge Pvt. Ltd., in the Group. The forging facilities include forging presses from 750T to 1600T. A fully equipped Heat Treatment, Die Design and Manufacturing and Metallurgical Test Lab supports the forging operations.
AFPL is recognized as the best connecting rod forging company in the country that has pioneered the development of C70 fracture connecting rod forgings in India.
AFPL can produce forgings weighing from 500 to 3500gm.
Machining
Amul has 28 connecting rod lines spread over 6 manufacturing plants.
Amul manufactures both conventional machined face con rods and the fracture split con rods. Amul pioneered the fracture split technology in India.
The manufacturing operations are supported by modern testing and inspection facilities and Standards Room for gauge calibration and first part approvals.
TESTING
Amul has fully equipped testing facilities which include all mechanical properties like Hardness, UTS, % Elongation, YS and Fatigue. The Metallurgical Testing lab includes a spark emission spectrometer for chemical composition (can detect 29 elements even in traces up to 0.001%) and ability to do microstructure study.All manufacturing plants have their independent receiving inspection and basic testing and gauge calibration facilities.
To fulfill the needs for continuous quality improvement and ensure continuedcustomer satisfaction we have adopted ISO 9002:1994 & QS 9000, Mar,1998 Quality system since April 2000 with the view of continuousimprovement, defect prevention, reduction of variation & waste in supplychain. We have set up highly sophisticated plant with a capability to produceconnecting rods and multi cylinder crank shafts along with in-houselaboratory facility & S.Q.C. Culture.It has been our regular practice to develop any critical component forAutomotive& I.C. Engine application. This has been backed up consistentlythrough our comprehensive in-house technical expertise.AMUL INDUSTRIES PVT. LTD.
QUALITY POLICYAmul Industries is committed for achieving “Total Customer Satisfaction” throughConsistently supplying quality products to our valued customerin time.
Products and Services
Amul auto components private limited manufactures following products:
Connecting Rod
Weight Range, Kg: 0.3 – 12,Size- Centre Distance, mm: 90 - 320 Crank End
Bore Ø, mm: 30-100, Piston End Bore Ø, mm: 10-40,Material: Micro Alloy Steel,
Plain Carbon.
Crankshafts-Automobile
Weight Range, Kg: 6 – 35,Crank Pin Ø, mm: 42 – 70,Journal Ø, mm: 45 – 90,Total Length, mm: 285 – 560,Material: SG Iron, Micro Alloys.
Crankshafts-Refrigeration
Weight Range, Kg: 2.5, Crank Pin Ø, mm: 38,Journal Ø, mm: 42,Total Length, mm: 331, Material : SG Iron, Micro Alloys.
Cylinder Blocks
Weight Range, Kg: 75 – 125, No. of Cylinders: 2 – 6 Cylinders, Bore Ø, mm:
80 – 125, Material: CI Castings.
Cylinder Heads
Weight Range, Kg: 80 – 100, No. of Cylinders: up to 6 Cylinders, Material: CI,
Al.
Camshafts
No. of Cylinders: up to 2 Cylinders, Total Length, mm: 235, Material: Carbon Steel.
Handle:
Bicycle handlebar or often bicycle handlebars refers to the steering mechanism for bicycles; the equivalent of a steering wheel. Besides steering, handlebars also often support a portion of the rider's weight, depending on their riding position, and provide a convenient mounting place for brake levers, shift levers, cyclocomputers, bells, etc. Handlebars are attached to a bike's stem which in turn attaches to the fork. Handlebars are most commonly made of aluminium alloys, but are also often made from steel, carbon fiber or titanium. Handlebars usually have tape or grips to provide grip and comfort. In general, handlebars which have one riding position have grips, and handlebars which provide several use tape.
Side Stand Step Pillion Engine Guard Dress Guard
Types of Handlebars:
Handlebars come in a variety of types designed for particular types of riding. Following are the main types of handlebar.
Drop Pursuit Bullmoose Flat
Riser Triathlon or aero bars BMX Upright or North Road Porteur Cruiser Condorino Whatton Touring or trekking Moustache
NEED FOR PERFORMANCE APPRAISAL
1. Provide information about the performance ranks basing on which decision regarding salary
fixation , conformation, promotion, transfer & demotion are taken.
To prevent grievances & in disciplinary activities.
2. Provides information which helps to counsel the subordinate.
3. Provides feedback information about the level of achievement & behaviour of subordinate.
4. Provides information to diagnose deficiency in employee regarding skill, knowledge, determine
training & development need & to prescribe the means for employee growth provides
information for correcting placement.
FUNCTIONS OF PERFORMANCE APPRAISAL
1. Identification the areas of training & development.
2. Helps in reward allocation.
3. Provide the opportunity to review the strange & weakness of the employees.
4. It helps in career planning& personneldevelopment .
5. Helps in establishing credibility of the selection procedure.
6. Act as a motivation factor.
1. Performance based reward in terms of increment& promotion etc.
Appraisal period
Appraisal period is from April to March. Every employee is appraised at the end of the Appraised period. Employees joining during appraised are appraised on completion of their one year service& employees joining after March are appraised in next appraisal.
METHODS OF PERFORMANCE APPRAISAL
PERFORMANCE APPRAISAL METHODS
Individual evaluation
Multiple- person evaluation method
Other method
Confidential report
Easy evaluation
Critical incidents
Checklists
Graphic rating scale
Behaviorally
anchored
Rating scale
Forced choice
method
MBO
Ranking
Paired comparison
Forced comparison
Group appraisal
HRA
Assessment
center
Field review
APPRAISAL BASED ON
TRADITIONAL METHOD
1) Ranking Method: Ranking is the oldest & simplest method of appraisal in which a person is ranked
against other on the basis of certain traits & characteristics. It is not good for large number of
employees. It does not include absolute or equal difference of ability between individuals.
2) Faired comparison method: Paired comparison is a slight variation of ranking system. In this
method each person or employees is compared with all other person. Then the rank is given according
Rader gives rating & puts a tick mark the name of each employee alter which the name of ticks are
counted & the employees having the most no. of tick marks is rated the highest. The large no. of
employees the more difficult in composition.
3) Grading: In this method certain categories well in advance & persons are put in their traits &
characteristics such categories are like:- outstanding, goods, average, poor, very poor or may be in
terms of A,B,C,D etc.
4) Forced Distribution method: It assumes that employee’s performance conforms to the bell- shaped,
this method tries to remove the error of leniency or central tendency error. This method can be
challenged people might question why they have been put in the category. This method is useful to
rate job performance & promo ability.
5) Forced-choice Method: The forced-choice rating method contains a service group of statement & the
rater checks how effectively the statement each individual being evaluated. Since forced choice is
made might be disliked by the managers also depends on whether the statements properly formulated
or not. The ultimate scoring lines with the H-H.R department.
6) Check-list Method: It is list of traits pertaining to the job. There are two options- Yes or No. this list
is passed to H.R Department & they have a recording key. Accordingly they mark the Yes or No &
give the overall rating. It is easily administered standardized & economical since it is applicable for
everyone.
7) Critical incidents Methods: Here focus on the incidents which are crucial for the performance of
job. The behavior of employee is checked & a record is maintained about how he reacted in a
particular situations. Here, since, we are keeping a record of job- related behavior it is more
appropriate. We are considering both effective & inefficiency & primary basis. Chances of
improvement are there.
8) Graphic scale method: Graphic scale also known as linear rating scale is the most commonly used
method of performance appraisal. In this method a printed appraisal from is used for each appraise. It
contain various employee characteristics & his job performance various characteristics include
initiative, leadership, dependability, cooperativeness, enthusiasm, creative ability, decisiveness etc.
The rating is done on the basic of scale which is in continuum. The central idea behind this scaling is
to provide the rate varying degree of a particular quality. The degree of quality is measured on a scale
which can very from three points to several points, graphical scale method is good one in measuring
various job behavior of an employee. However it is not free from rate’s biases.
9) Essay Method: It is a detailed description or narrative form of the employee evaluation. It does not
provide any quantitative data to compare & is very unstructured, one need to have good analytical &
writing skills. The essay method is useful in providing useful information about an employee on the basic
of which he can be appraised.
10) Field Review Method: Employee are related by any other person expect than the immediate
supervisor or own dept. the person can be from some other dept, or outside the organization ratings are
given on the employees record with organization & the information provided by the supervisor when he is
interviewed by enumerator. A complied report given by the enumerator & is free bias. It based on second
final information.
APPRAISAL BASED ON MODERN METHOD
1. Assessment centre: It is also method used for promotion. In this method there is a team of
experts or evaluators who judge the performance. In this method all the candidates who clime for
promotion are called participant. They asked to do different exercise of development or they have
to give the answer of the expert. By this expert know their behavior or attitude & according to
this expert prepare report & gave promotion.
2. Human Resource Accounting Method: Human Resource According are a valuable asset of any
organization. This asset can be valued in team of money. Under this method performance is
judged in team of cost and contribution of employees. Cost of human resource planning,
recruitment, selection, induction, training, compensationetc. contribution of human resource in
this money of labour productivity or value added by human resources.
3. Behaviorally Anchored Rating Scale (BARS): This method combines graphic rating scales
with critical incident methods. BARS are descriptions of various degrees of behavior relating to
specifics performance dimensions .The behavior of the employees is checked through graphic
rating method.
Graphical Rating Scale methods used to performance appraisal in Amul Auto Components
Pvt. Ltd.
Graphic scale also known as linear rating scale is the most commonly used method of
performance appraisal. In this method a printed appraisal from is used for each appraise.
It contain various employee characteristics & his job performance various characteristics
include initiative, leadership, dependability, cooperativeness, enthusiasm, creative ability,
decisiveness etc.
Graphical Rating Scale methods compare individual performance to an absolute
performance
Judgemental about performance recorded on scale.
The form contain a numbers of objective behaviour and traits based qualities, characterstic.cs to be rated
like quality and volume of works job knawladege attitude etc.
The points given by the rater to each character are added up to find out the overall performance.
USES OF PERFORMANCE APPRAISAL
1) Performance Improvement: Performance feedback allows the employee, manager, & personnel
specialists to intervene with appropriate action to improve performance.
Rating scale are two types
Continous Rating Scale Discontious Rating Scale
Satisfactory Unsatisfactory
1 2 3 4 5 6 7 8 9 10
2) Compensation Adjustments: Performance evaluation help decision- makers determine who should
receive pay rises. Many firms grant part or all of their pay increases & bonuses based upon merit,
which is determine mostly through performance appraisals.
3) Placement Decision: Promotion, transfer, & demotion are usually based on past or anticipated
performance. Often promotions are reward for past performance.
4) Training & Development Needs: Poor performance may indicate the need for retaining. Likewise,
good performance may indicate untapped potential that should be developed.
5) Career Planning & Development: Performance feedback guides career decision about specific
career paths one should investigate.
6) Staffing Process Deficiencies: Good or bad performance implies strength or weakness in the
personnel department staffing procedure.
7) Information Inaccuracies: Poor performance may indicate errors in job analysis information,
human resources plans, or other parts or the personnel management information system.
8) Job Decision Errors: Poor performance may be a symptom of ill-conceived job designs.
Appraisals help diagnose these errors.
9) Equal Employment Opportunity: Accurate performance appraisals that actually measure job-
related performance ensure that internal placement may be able to provide assistance.
PROBLEMS OF PERFORMANCE APPRAISAL
Rating Biases: The problem subjective measure (is that rating which is not verifiable by others) has the
opportunity for bias. The rater biases include:
Halo effect: It is the tendency of the raters to defend excessively on the rating of one trait or behavioral
consideration in rating all other traits or behavioral consideration. One way of minimizing the halo
effect is appraising all the employees by one trait before going to rate on the basis of another trait.
The error of central tendency: Some raters follow play safe policy in rating-by- rating all the employees
around the middle point of the rating scale & they avoid rating the people at both the extremes of the
scale. They follow play safe policy because of answerability to management or lack of knowledge
about the job & person he is rating or least interest in his job.
The leniency & strictness biases: The leniency bias crops when some raters have a tendency to be
liberal in their rating by assigning higher rates consistently. Such rating do not serve any purpose.
Equally damaging one is assigning consistently low rates.
Personal prejudice: If the rating dislikes any employee or any group, he may rate them at the lower &,
which may distort the rating purpose & affect the career of these employees.
The regency effect: The raters generally remember the recent action of the employee at the time of rating
& rate on the basis of these recent action- favorable or unfavorable- rather than on the whole activities.
Failure of the superior in conducting performance appraisal & post performance appraisal interviews.
Most part of the appraisal is based on subjectivity.
Less reliability &validity of the performance appraisal techniques.
Negative rating affects interpersonal relating & industrial relations system.
Influence of external environment factors & uncontrollable internal factors.
Feedback & post appraisal interview may have a setback on production.
Management emphasizes on punishment rather than development of an employee in performance
appraisal.
Some rating particularly about the potential appraisal is purely based on guesswork.
THE OTHER PROBLEMS OF PERFORMANCE APPRAISAL REPOTED BY VARIOUS
STUDIES ARE:
1) Relationship between appraisal rates & performance after promotions was not significant.
2) Some superiors completed appraisal reports with in few minutes.
3) Absence of inter-rater reliability
4) The situation was unpleasant in feedback interview.
5) Superiors lack of offering the suggestions constructively to subordinates.
6) Supervisors were often confused due to too many objectives of performance appraisal.
ADVANTAGES OF PERFORMANCE APPRAISAL
1) There will be an objective analysis of traits of both the superior & subordinate.
2) There will be change to subordinate to express his views even after performance appraisal.
3) An employee shall express his emotional needs & his value system, which is considered taboo
will today.
4) It overcomes the communication barrier.
5) It will remove the inherent weakness of the appraisal system, i.e., subjective assessment of vague
& abstract performance targets, unclear guidelines for appraisal etc.
6) Measures an employee’s performance.
7) Helps in clarifying, defining, redefining priorities and objectives.
8) Motivates the employee through achievement and feedback.
9) Facilitates assessment and agreement of training needs.
10) Helps in identification of personal strengths and weaknesses.
CHAPTER-REVIEW OF LITERATURE
The review of literature being the critical aspect of the study has been identified and incorporated by studying and analyzing various newspapers, magazines, journals, research papers and surfing various sites in the internet. The following reviews have been identified:
The Present Performance Appraisal system that is been followed by the company is Managerial Appraisal System, and not for the others that is it is according to the following companies Grades & Levels of Workers
.
OBJECTIVES AND RESEARCH METHODOLOGY
OBJECTIVES
The objectives of the study are as follows:
The employee's perception of the assessment as fair The quality of the employee's existing relationship with the person / persons doing the appraising The impact that the appraisal has on employee reward and their own well-being To find out a viable solution for low performers To find out the perception of the employees regarding the new Executive Performance Appraisal
System
.RESEARCH METHODOLOGY
The purpose of an exploratory research is a systematic research is secondly to understand and develop
hypothesis to cover all possible outcomes. A thorough exploratory research lays the foundation of a good
research design, which would satisfy the research objectives. Sometimes exploratory research itself may
be enough to solve the problem.
RESEARCH DESIGN:The research design is Descriptive Research
Target population total employee of the companyS
SAMPLE SIZE Sample size for this study is totally 100 Respondents.
DATA COLLECTION: The information is collected through primary sources during the project.
Sources of collecting primary data:
This data is collected through questionnaire method.
LIMITATIONS TO THE STUDY
Following are the limitations of this project:-
1. If not done appropriately, can be a negative experience.
2. Based on human assessment and are subject to rater errors and biases.
3. If not done right can be a complete waste of time.
4. Can be stressful for all involved.
5. Due to time constraint the sample was restricted to 100 employees;
CHAPTER-1
ANALYSIS AND INTERPRETATION OF DATA
The following are the analysis and the interpretation of the questionnaire that has been surveyed from the employees. This will give the clear idea about the performance appraisal system view on employees and what they are feeling about the system. Thus this is done by the way of CHARTS and GRAPHS, which will show the percentage of each question and to arrive at a solution.
Question no 1: Number of service years in this organization.
(a) 5-10 years (b) 10-15 years (c) More than 15 years
Question 5-10 Years10-15 Years
More Than 15 Years
Sample Size 100 Employees
36 38 26
Fig. 1.1
36%
38%
26%
Sample Size 100 Employees5-10 Years 10-15 Years More Than 15 Years
Findings: The response collected is based on the period of their service in the organization. More the period of service will be the more the experience would be the percentage of 10-15 years of service was more which is considered.
Question no 2: Do you aware about your performance appraisal or any evaluation done by your superior.
(a) Yes (b) No
Question YesNoSample Size 100 Employees80 20
Fig. 1.2
80%
20%
Sample Size 100 Employees
YesNo
Findings: 80 % the employees had responded in favor of that they were aware about performance appraisal. Question no 3: Are you aware about the modern techniques used in performance appraisal?
(a) Yes (b) No (c) can’t say
Question AB CSample Size 100 Employees6 8014 Fig. 1.3
A B C
6
80
14
Sample Size 100 EmployeesSample Size 100 Employees
Findings: Near about 80% of the employees had not aware about modern performance appraisal techniques.
Question no 4: Performance appraisal techniques make you better eligible for promotion, demotion, & transfer.
(a) Agreed ( ) (b) Not Agreed ( ) (c) Cant’ say ( )
Question A B CSample Size 100 Employees503020
Fig. 1.4
A50%
B30%
C20%
Sample Size 100 Employees
Findings: The 50% of the respondents shows that PAR as a good strategy to go head with promotion while 30% of respondents not agree with it & rest of respondents cant’ say anything.
Question no 5: Do you think performance appraisal is useful or just a waste of time?
(a) Useful ( ) (b) waste of time ( )
Question Yes UsefulNo UsefulSample Size 100 Employees
64 36
Fig. 1.5
64%
36%
Sample Size 100 EmployeesYes Useful No Useful
Findings: More than 64% of the employees say that performance appraisal is useful for there self-assessment and promotions. Thus, they cannot ignore it.
Question no 6: Proper and adequate performance appraisal plays a crucial role in your career development.
(a) Agreed ( ) (b) Not Agreed ( )
Question YesNoSample Size 100 Employees67 33
Fig. 1.6
Yes67%
No33%
Sample Size 100 Employees
Findings: 67% of the responses show that Performance Appraisal Report helps a lot in the promotional activities.
Question no 7: Does performance appraisal report is helpful in identifying Training and Development need or it lay development plan for you?
(a) To a large extent (b) To some extent (c) Not at all
Question A B CSample Size 100 Employees603010
A B C
60
30
10
Sample Size 100 EmployeesSample Size 100 Employees
Fig1.7
Findings: 60% of the respondents are satisfied by the performance appraisal report as it helps them to understand the job profile and helps in training need identification.
Question no 8: Performance appraisal is most of the time fair and unbiased.
(a) Agreed ( ) (b) Not Agreed ( )
Question YesNoSample Size 100 Employees64 36
Fig. 1.8
64%
36%
Sample Size 100 Employees
YesNo
Findings: 64% of the respondents show that Performance Appraisal report is time fair & unbiased.
Question no 9: Have you understood clearly, as to what is expecting from you?
(a) Yes (b) No (c) Cant’ say
Question A B CSample Size 100 Employees402238
Fig. 1.9
A B C
40
22
38
Sample Size 100 EmployeesSample Size 100 Employees
Findings: There is a close response from the respondents on Performance appraisal report where on one hand (near about 40%) say that it makes feel refreshed & know there better responsibility. On the other hand some say that it has helped them in improving their skills not to define there future responsibility and performance.
Question No 10: Does the organization provide counseling after appraisal?
(a) Yes (b) No
Question YesNoSample Size 100 Employees74 26
Fig. 1.10
74%
26%
Sample Size 100 EmployeesYes No
Findings: Near about 75% of the respondents, say that Organization provides counseling after performance appraisal report.
FINDINGS
1. The response collected was based on the period of their service in the organization the more the period of service will be the more the experience would be the percentage of 10-15 years of service was more which is considered.
2. 80% the employees had responded in favor of that they were aware about performance appraisal. 3. Near about 80% of the employees had not aware about modern method of the performance appraisal
techniques. 4. The 50% of the respondent’s shows that PAR as a good strategy to go head with promotion while
30% of respondents not agree with it & rest 20% of respondents can’t’ say anything. 5. More than 64% of the employees say that performance appraisal report is useful to them. 6. 67% of the responses show that Performance Appraisal Report helps a lot in the promotional
activities. 7. 60% of the respondents are satisfied by the performance appraisal report as it helps them to
understand the job profile and helps in training need identification. 8. 64% of the respondents show that Performance Appraisal report is time fair & unbiased. 9. There is a close response from the respondents on Performance appraisal report where on one hand
(near about 40%) say that it makes feel refreshed & know there better responsibility. On the other hand some say that it has helped them in improving their skills not to define there future responsibility and performance.
10. Near about 75% of the respondents, say that Organization provides counseling after performance appraisal report.
SUGGESTIONS
1. Awareness about performance appraisal can be created through seminars and management meets;
2. The performance appraisal should be implemented and can be reviewed on half yearly basis;
3. Establishing a basis for research and references for personnel decisions in future.
4. Helps in Errors spotting, including the identification of under achievers whose weaknesses can be corrected efficiently and rationally. But the error should not be disclose in group, it should go with personal meet with the employee after understanding his problems in the basis of Pareto 20/80 rule;
5. The can also arrange for some competition within the organization like Best Performance Award etc., this is one way to appraise the employees;
6. The company can motivate their employee by giving package tour, child education, Mobile etc.; this will make them to perform better.
CHAPTER-8 CONCLUSION
It is truth that no work is completed in itself. Infact, completion of one job is actually the beginning of another job. Likewise, performance Appraisal is never ending process. It is essential for personal & professional Development.
This project has been considering all possible aspects mentioned in the project aspects mentioned in the project booklet. The project is made very clear and precise with the help of the relevant data which is provided by the company & through various annexures. This project report to me a greater satisfaction.
In the concluding remark of my project report, I would like to state that At AMUL AUTO COMPONENT PVT. LTD, the employers are considered as most valuable assets & strength for sustained growth & development of the company.
They believe in investing continuously in human resource for their growth. The company is led by young professionals. They have an open work environment which is achievement Oriented.