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CONTENTS
CHAPTER NO. TOPICS PAGE NO.
CHAPTER (1) INTRODUCTION
(1.1) ABOUT JK TYRE
(1.2) VISION & MISSION
(1.3) FUTURE PLANS
(1.4) ORGANISATION STRUCTURE
(1.5) PERFORMANCE APPRAISAL SYSTEM
(1.6) PROCESS OF PERFORMANCE APPRAISAL
(1.7) METHODS OF PERFORMANCE APPRAISAL
(1.8) REVIEW OF LITERATURE
(1.9) OBJECTIVES OF THE STUDY
CHAPTER(2) RESEARCH METHODOLOGY
(2.1) THE STUDY
(2.2) SAMPLING PROCEDURE
(2.3) DATA COLLECTION
(2.4) DATA ANALYSIS
CHAPTER(3) RESULTS AND DISCUSSION
(3.1) RESULTS & GRAPHICAL REPRESENTATION
CHAPTER(4) FINDINGS & OBSERVATION
CHAPTER(5) SUGGESTION & RECOMMENDATION
CONCLUSION
REFERENCES
ANNEXURE
CHAPTER-1
INTRODUCTION
INTRODUCTION OF J.K.TYRE & INDUSTRIES :
JK Tyre and Industries is a leading corporate entity which believes in excellence,
innovation and technology. The Company started manufacturing tyres in 1977, with a
capacity of 0.5 million tyres per annum and has grown multifold over the years to its
present capacity of more than 16 million tyres per annum. JK Tyre has five state-of-
the art plants strategically located in India; in the States of Rajasthan, Madhya Pradesh
and Karnataka. The Company is known for manufacturing India’s leading tyre brands
- JK Tyre, Vikrant and Tornel in Mexico, for all categories of four-wheelers.
As the 22nd largest tyre manufacturer in the world, JK Tyre exports its tyres to over
80 countries across 6 continents and enjoys a premium brand status in various
sophisticated markets, including the Americas. The Company also outsources tyres
from China and other low cost countries for its international markets. JK Tyre
pioneered the Radial technology in India way back in 1977 and is India’s only tyre
manufacturer, offering full range of radial tyres for Cars, Jeeps, SUVs, LCVs, Truck
& Bus and Tractors. The Company manufactures the entire range of tyres for all four-
wheeler categories.
The Company is the No.1 player in ‘Off the Road’ (OTR) tyre segment and has
presence across India in almost all applications like Mining, Rock Excavating,
Quarrying, Dam Building and Port operations, and also manufactures Ultra-Large
OTR tyres in its state-of-the-art facility at Mysore.
With a distribution network of over 4000 dealers and over 120 stocking points, JK
Tyre has left a mark across every Indian road treading into every nook and corner of
the country. This includes 125 ‘JK Tyre Steel Wheels’ – high-tech one-stop-tyre
shops, and over 20 JK Tyre Truck Radial Care Centres on major National highways
which operate on a 365 days/24 hours basis. JK Tyre is a preferred Original
Equipment Manufacturers (OEM) supplier and continues to be ranked No.1 by the JD
Power Asia Pacific Tyre Customer Satisfaction Index Survey. ‘JK Tyre’ is the first
and the only Indian Tyre Brand to be recognized as a “Superbrand”
The Company has consciously been modernizing and expanding its manufacturing
facilities continuously to retain its edge in the market place. JK Tyre is a Total Quality
Management (TQM) driven company, having received all four ISO 9001, QS 9000,
ISO 14001 and TS 16949 accreditations. The Company was the first tyre company in
the world to receive ISO/TS 16949:2000 certificate for its entire operations in one go.
This indeed is a true reflection of JK Tyre’s commitment to systems and quality
oriented approach.
JK Tyre is a technology driven company. Its R&D Centres, “HASETRI (Hari Shankar
Singhania Elastomer and Tyre Research Institute)” one of its kind institute in Asia;
“Raghupati Singhania Centre of Excellence for Tyre and Vehicle Mechanics”, set up
jointly with IIT Madras, a successful example of ‘Academia Industry Collaboration’;
and its Test Track at Chennai, keep the Company at cutting edge of tyre technology. It
also has a technical collaboration with M/s Continental AG, Germany, the 4th largest
tyre manufacturer in the world.
JK Tyre started a revolution by unveiling the nation's first eco-friendly colored radials.
These Green Tyres were developed indigenously at JK Tyre's state-of-the-art R&D
facilities HASETRI.
As a constructive partner in the communities in which it operates, JK Tyre has been
taking various actions to realize its commitment towards society. Over the years, JK
Trye has supported enumerable social and community initiatives in the fields of health
care, education, social, cultural and environmental projects. JK Tyre is committed to
the protection of environment and has undertaken various projects for conservation of
energy, water resources, as also by introduction of “Green” products and processes.
With a strong belief in – “People make the Organisation” – JK Tyre provides a
challenging and healthy work environment for the growth and fulfillment of its people
With a vision to be amongst the most admired Companies in India, JK Tyre is striving
to surpass its own successes and achievements day after day.
VISION:
“To be amongst the most admired companies in India committed to excellence.”
MISSION:
Be a customer obsessed company.
No.1 Tyre Brand in India.
Deliver enhanced value to all stake holder.
Most profitable Tyre company in India.
Enhance global presence through acquisition.
Motivated and committed team development for high performance Organization.
CORE VALUES :
- Caring for people.
- Integrity including intellectual honesty, openness, fairness & trust.
- Commitment to Excellence.
FUTURE PLANS :
India is fast emerging as a global automobile hub particularly for small cars. It offers immense opportunities for JK Tyre to grow its business both organically and inorganically.
We have been constantly exploring ways of increasing our presence in different world markets, through alliances and acquisitions in tyre and related business. In all our Endeavour’s, our core focus is on customer delight. Enlarging the customer base, providing them with better quality of services and more value added products, will continue to be the key areas of our thrust.
CUSTOMER SATISFACTION - OUR CREDO
Customer Satisfaction has always been our prime focus. We are indeed proud of our
highly experienced and professional team for winning the trust of customers and
building strong relationships with them.
Our 115 company owned stocking points serve over 4000 dealers across the country.
We have set up 130 JK Tyre Steel Wheels - a unique concept in car tyre retailing
which provides value added services like wheel balancing, alignment and tyre care to
customers.
Our Truck Radial Care Centers offer after-sales service for Truck/Bus Radials, which
operate on 365 days / 24 hours basis. A large number of such centers have been set up
along all major National Highways.JK Tyre has been among the top two tyre
companies in respect of Customer Satisfaction, as per JK Power Asia Pacific Study,
for many years.
First Indian tyre company to introduce All Steel Truck & Bus Radials in India in 1999
Pioneered Radial technology in India by introducing passenger radials in 1977
First Indian tyre company to be recognized as 'SUPERBRAND' by Global Advertising
Professionals.
MILESTONES :
1976 First in India to produce steel belted Radial Tyres for passenger cars, trucks and buses- J.K. Tyre Plant, Kankroli.
1980 First in world to make Steel Belted Radial Tyres for three wheelers- J.K. Tyre Plant, Kankroli.
1984 First in India to produce white cement through dry process- J.K. White cement. Gotan.
1985 First in India to produce Cathonic Dyeable Polyester Fibre- J.K. Synthetics Ltd., Kota. First in India to produce Nylon Tyre Cord based on Spin Draw Technology- J.K. Synthetics Ltd., Kota.
1989 First in India to produce magnetic tapes with cobalt technology J.K. magnetics, Surajpur.
1991 Banmore Tyre Plant (BTP) set-up with a capacity of 5.7 lacs tyres p.a.
1992 R & D center set-up at HASTERI.
1994 India's first T-Rated tyre launchedBanmore Tyre Plant (BTP) crossed 100 TPD.
1995 Mercedes Benz Launched on JK steel radialsFirst tyre manufacturer in the world to get ISO 9001
1996 India's first dual contact high traction steel radial- aquasonic launched.Introduced steel wheels.
1997 Awarded the National Export Award for 96-97.Vikrant Tyres (VTL) acquired.India's first H rated tyre launched.Only Tyre manufacturer to get 'E' Mark certification.HASETRI became the first research institute in Asia to get ISO 9002.
1998 First tyre manufacturer in the world to get QS 9000.Awarded CAPEXIL's highest export award for 1997-98.
1999 Synergy with VTL in procurement, marketing and production flexibility.Completion of state of the art modernisation of truck radials.JK Tyres ranked 16th largest Tyre Company in the world.ISA - 14000 accredition for environment & safety.
2000 JK introduced National Go-Karting Championships.
2001 Recieved CAPEXIL award.J.K. Industries recieved FOCUS LAC export award for the year 1999-2000.Commendation Certificate of CII Exim.IInd National Go-Karting Championships held.
J.K.TYRE & INDUSTRIES, BANMORE PLANT :
BANMORE TYRE PLANT started its production in 1991 and the first tyre rolled out
25th march 1991.The initial capacity of the plant was 4.5 mt/ day. Radial tyre
production in passenger and light commercial vehicle segment was added in 1996.
The plant is continuously improving its capacity, particularly in radial segment.
Present radial capacity is 9000 tyre/ day. Total investment is in last three years for in
capacity in radial tyre is apporx Rs117 crore. The expencesion of radial plant is still
on.
Our customer’s base virtually covers the entire Original equipment manufactures
[OEM] in India together with replacement market for four wheeler, defence and state
transport undertaking. Besides India, we have worldwide customers base exporting to
more then 60 countries.
Plant manages their process through documented procedures based upon
ISO/TS16949QMS and ISO 14001 EMS [for plant only]. These described only all the
activities in structured manner to be performed at all BU & SSU level. These
procedures are audited at least twice in six months, once each by internal and external
auditors. These audits ensure that systems are effectively functioning and continual
improvement are achieved.
BANMORE TYRE PLANT has started its TPM (Total Productive Maintenance)
journey from October 2005.
ORGANIZATION STRUCTURE :
PERFORMANCE APPRAISAL :
A performance appraisal system functions as definitions of performance. Performance
appraisal is a method of evaluating the behaviour of employees in the work spot,
including both qualitative and quantitative aspects of job performance indicates how
an individual is fulfilling the job demands and it is always in terms of results. Under
performance appraisal not only the performance of an employee but also his potential
for development is evaluated. “Performance Appraisal is a systematic description of
an employee’s job relevant strengths and weaknesses”.
A major concern of every organization should be to contribute positively towards the
achievement of its objective. Organizational effectiveness is often equated with
managerial efficiency. A manager can ensure organizational effectiveness only by
guaranteeing the full utilization of human resource available through individual
employees under his guidance. Hence, it is always required for a manager to monitor
and measure the performance of employees.
Moreover, since the organization exists to achieve the goals, the degree of success that
individual employees have in reaching this individual goal is important in determining
organizational effectiveness. The assessment of how successful employees have been
at meeting their individual goal to comes a critical part of human resource
management. This leads to concept of performance appraisal.
In performance appraisal or merit rating refers to all the formal procedures used in
working organizations to evaluate the personalities and contributions and potential
group members. In appraisal system the employee’s merits like initiatives,
dependability, personality etc., are compared with others and ranked to rated.
Appraisals might be based on the criteria of employee’s skills, educational
qualifications, knowledge, abilities to delegate plans, supervise, assume responsibility,
exercise leadership, personal qualities, creativity, decision making and interpersonal
skills.
An appraisal motivates an employee into increased effort aimed at enhancing the
outcome of the assessment. It tells an employee what set of activities or what qualities
are considered desirable by the organization.
It is the systematic method of obtaining, analyzing & recording information about an
employee that is needed:
For effective management of business.
By the manager to help him improve the jobholders performance and plan his
career.
By the jobholder to assist him to evaluate his own performance and develop
himself. In performance planning and review, the Reporting Manager is expected
to set targets or tasks for the appraise in the beginning of the year. In the middle of
the year, the appraise fills the self-appraisal form, indicating the extent which the
target or task has been completed, the difficulties faced and the suggestions for
improvement. At the end of the year, there is the annual review and targets/tasks
set for the next year. Both in the mid-year review and annual review, the self-
appraisal is supplemented by a performance review, discussion, the problems are
discussed and the appraiser is given feedback on how he is doing. The appraisal
system is an instrument for improving the work culture by convincing employees
that their career growth is linked with the performance of the company.
We can briefly say that performance appraisal systems are necessities to assess
performance at regular intervals with consistency to study improvements, deviation
and to take corrective actions to bride gaps and improve performance over a period of
time.
What is the Purpose of Performance Appraisal ?
Professional development such as identifying strengths and weaknesses in
performance, implementing strategies for improvement.
Determining organizational training and development needs.
Making and validating administrative decisions like pay, promotion, placement,
and termination.etc.
Identifying systemic factors that are barriers to, or facilitators of, effective
performance.
It guarantees useful information about employees and the nature of their duties.
Objectives of Performance Appraisal :
To review the performance of the employees over a given period of time.
To judge the gap between the actual and the desired performance.
To help the management in exercising organizational control.
Helps to strengthen the relationship and communication between superior –
subordinates and management – employees.
To diagnose the strengths and weaknesses of the individuals so as to identify the
training and development needs of the future.
To provide feedback to the employees regarding their past performance.
Provide information to assist in the other personal decisions in the organization.
To judge the effectiveness of the other human resource functions of the
organization such as recruitment, selection, training and development.
To reduce the grievances of the employees.
To identify those who are performing their assigned task well and those who are
not and the reason for such performance.
To create and maintain satisfactory level of performance.
To ensure organizational effectiveness.
To diagnose the training and development need of the future.
PROCESS OF PERFORMANCE APPRAISAL :
ESTABLISHING PERFORMANCE STANDARD :
The first step in the process of performance appraisal is the setting up of the standards
which will be used to as the base to compare the actual performance of the employees.
This step requires setting the criteria to judge the performance of the employees as
successful or unsuccessful and the degrees of their contribution to the organizational
goals and objectives. The standards set should be clear, easily understandable and in
measurable terms. In case the performance of the employee cannot be measured, great
care should be taken to describe the standards.
COMMUNICATING THE STANDARDS :
Once set, it is the responsibility of the management to communicate the standards to
all the employees of the organization. The employees should be informed and the
standards should be clearly explained to the. This will help them to understand their
roles and to know what exactly is expected from them. The standards should also be
communicated to the appraisers or the evaluators and if required, the standards can
also be modified at this stage itself according to the relevant feedback from the
employees or the evaluators.
MEASURING THE ACTUAL PERFORMANCE :
The most difficult part of the Performance appraisal process is measuring the actual
performance of the employees that is the work done by the employees during the
specified period of time. It is a continuous process which involves monitoring the
performance throughout the year. This stage requires the careful selection of the
appropriate techniques of measurement, taking care that personal bias does not affect
the outcome of the process and providing assistance rather than interfering in an
employees work.
COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE :
The actual performance is compared with the desired or the standard performance.
The comparison tells the deviations in the performance of the employees from the
standards set. The result can show the actual performance being more than the desired
performance or, the actual performance being less than the desired performance
depicting a negative deviation in the organizational performance. It includes recalling,
evaluating and analysis of data related to the employees’ performance.
DISCUSSING RESULTS :
The result of the appraisal is communicated and discussed with the employees on one-
to-one basis. The focus of this discussion is on communication and listening. The
results, the problems and the possible solutions are discussed with the aim of problem
solving and reaching consensus. The feedback should be given with a positive attitude
as this can have an effect on the employees’ future performance. The purpose of the
meeting should be to solve the problems faced and motivate the employees to perform
better.
DECISION MAKING :
The last step of the process is to take decisions which can be taken either to improve
the performance of the employees, take the required corrective actions, or the related
HR decisions like rewards, promotions, demotions, transfers etc.
How to conduct a performance appraisal ?
The following five-step approach to conducting a systematic performance appraisal is
recommended:
1. Identify key performance criteria
2. Develop appraisal measures
3. Collect performance information from different sources
4. Conduct an appraisal interview
5. Evaluate the appraisal process.
Step 1: Identify key performance criteria :
Perhaps one of the most challenging aspects of setting up a performance appraisal is
deciding what to assess. In essence, four key dimensions of performance should be
considered in a performance appraisal.
Key Dimensions of Performance:
Competencies : Knowledge, skills, and abilities relevant to performance
Behaviors : Specific actions conducted and / or tasks performed
Results / outcomes : Outputs, quantify able results, measurable outcomes
and achievements, objectives attained.
Organizational citizenship
behavior : Actions that are over and above usual job responsibilities
To ensure that the performance criteria are relevant to work practice and acceptable to
appraisers and workers:
i. Base the performance criteria on an up-to-date job description
ii. Develop criteria in consultation with appraisers and workers
Step 2: Develop appraisal measures :
Once clear and specific performance criteria have been developed, the next step is to
decide how to assess workers’ performance. It is recommended that a structured and
systematic approach is taken to assessing performance. Problems that arise when an
unstructured “blank sheet” approach is used include:
• Increased chance of appraiser errors
• Knowledge, skills and abilities most critical to job performance may be overlooked
• Reduced consistency between appraisers
• Perceptions of “subjectivity” in evaluations, which may in turn, reduce workers’
satisfaction with, and acceptance of, appraisals.
Step 3: Collect performance information from different sources :
Once the appraisal measures are developed, the next step involves collection of
accurate performance information. A common trap is to begin noting observations of
workers just before conducting appraisals. This is likely to give an inaccurate picture
of a worker’s performance. Ideally, workers’ performance should be observed in a
systematic way over time .This method ensures the accuracy of information about
their performances.
Traditionally, it has been the sole responsibility of managers / supervisors to assess
performance. However, other organizational members can be a valuable source of
information as they are likely to have exposure to different aspects of a worker’s
performance. This approach is known as 360-degree feedback. For instance,
coworkers can provide valuable information on teamwork skills, and subordinates can
provide useful information on leadership style.
Five different sources of performance appraisal information are considered here:
i. Manager / supervisor appraisals
ii. Self appraisals
iii. Coworker appraisals
iv. Subordinate appraisals
v. Client appraisals.
Step 4: Conduct an appraisal interview :
The next step in a performance appraisal is to conduct the appraisal interview. The
two central purposes of the appraisal interview are to:
• Reflect on past performance to identify major achievements, areas that require
further development, and barriers / facilitators to effective performance
• Identify goals and strategies for future work practice.
Step 5: Evaluate the appraisal process :
As with any organizational system, the performance appraisal process should undergo
regular review and improvement.
APPROACHES OF PERFORMANCE APPRAISAL :
Traditional approach:
Traditionally, Performance appraisal has been used as just a method for determining
and justifying the salaries of the employees. It begins to use as a tool for determining
rewards and punishments for the past performance of the employees.
This approach was a past oriented approach which focused the employees i.e. during a
past did not consider the development aspect of the employee performance. The
primary concern of the traditional approach is to judge the performance of the
organization as a whole by the past performance of its employees. Therefore this
approach is also called as the overall approach.
Modern approach.
The modern approach to performance development has made the performance
appraisal process more formal and structured. Now, the performance Appraisal is
taken as a tool to identify better performing employees training needs, career
development. Paths, rewards and bonuses and their promotions to the next level. The
modern approach to performance appraisal includes a feedback process that helps to
strengthen and subordinates and improves communication through the organization.
METHODS,TECHNIQUES FOR APPRAISING PERFORMANCE
TRADITIONAL METHODS
1. Straight Rank Method:
It is the oldest & simplest method of performance appraisal, by which the man and
his performance are considered as an entity by the rater. Then ranking of a man in
work group is done against may also do that of another member of a competitive
group by placing him as one or two or three in total group, i.e. persons are tested in
order of merit and place in a simple grouping.
2. Man –To-man Comparison Method:
The USA army during the FIRST WORLD WAR used this technique. By this
method, certain factors are selected for the purpose of analysis and a scale is
designed by the rater for each factor. A scale of man is also created for each
selected factor. The each man to be rated is compared with in the scale, and certain
scores for each factor are awarded to him. This method is used in job evaluation,
and is known as the factor comparison method.
3. Grading Method:
Under this system, the rater considers certain features and marks them accordingly
to a scale. The selected features may be analytical ability, cooperativeness,
dependability, self-expression, job knowledge, judgment, leadership and
organizing ability, etc. they may be
A – Outstanding,
B – Very good,
C – Good or average,
D – Fair,
E – Poor.
The actual performance of an employee is then compared with these grade definitions;
such type of grading is done in semester examinations and also in the selection of
candidates by the public service commissions.
4. Graphic or Linear Rating scale:
This is most commonly used method of performance appraisal. Under it, a printed
forms one of each person to be rated. According to juices, these factors are
employee characteristics ad employee contribution. In employee characteristics
are included such qualities and initiative, leadership, cooperativeness,
dependability, industry, attitude, enthusiasm, loyalty, creative ability,
decisiveness, analytical ability, emotional ability and co-ordination. In the
employee contribution are quantity and quality of work, the responsibility
assumed specific goals achieved regularity of attendance, leadership offered,
attitude towards supervisors and associates, versatility etc.The rating scale method
is easy to understand and easy to use, and permits a statistical tabulation of scores.
A ready comparison of scores among the employees is possible.
5. Forced Choice Description Method :
This method was evolved after great deal of research conducted for military
services during World War II. It attempts to correct a rater’s tendency to give
consistently high or consistently low ratings to all employees. The use of this
method calls for objective reporting and minimum subjective judgment. Under
this method the rating elements are several sets of pair phrases or adjectives
(usually sets of four phrases two of which are positive, two negative) relating to
job proficiency Or personal qualifications. The rater is asked to indicate which of
the four phrases is most and least descriptive of the employee.
6. Forced Description Method:
Joseph Tiffin evolved this method after statistical work. This system is used to
eliminate or minimize rater’s bias, so that all personnel may not be placed at the
higher end or at the lower end of the scale. It requires the rater to appraise an
employee according to a predetermined distribution scale. Under this system, it is
assumed that it is possible and desirable to rate only to factors, viz., job
performance and promotability. For this purpose, a five point performance scale is
used without any descriptive statement. Employees are placed between the two
extremes of ‘good’ and ‘bad’ job performance.
7 .Check List:
Under this method, the rater does not evaluate employee performance; he supplies
report about it and the personnel department does the final rating. A series of
questions are presented concerning an employee to his behaviour. The rater, the
checks to indicate if the answer to a question about an employee is positive or
negative. An example of check list is given below:
1. Is the employee really interested in his job? Yes/No
2. Is regular on his job? Yes/No
3. Does he follow instructions properly? Yes/No
4. Is he always wiling to help other employees? Yes/No
5. Does he ever make mistakes? Yes/No
8. Free Easy Method:
Under this method, the supervisor makes a free from, open-ended appraisal of an
employee in his own words and puts down his impressions about the employee.
He takes not of these factors.
a. General Organization and planning ability.
b. Job knowledge and potential.
c. Employee characteristics and attitudes.
d. Understanding and application of company policies and procedures.
e. Production, quality and cost control.
f. Physical conditions.
g. Development needs for future.
9. Group Appraisal Method:
Under this method, an appraisal group rates employees, Consisting of their
supervisor and three or four other supervisors who have knowledge of their
performance. The supervisor explains to the group the nature of his subordinates
duties. The group then discusses the standards of performance for that job, the
actual performance of the job holder, and the causes of their particular level of
performance, and offers suggestions for future improvement, if any.
10. Field Review Method :
Under this method, trainer employees from the personnel department interview
line supervisors to evaluate their respective subordinates. The appraiser is fully
equipped with definite test questions, usually memorized in advance, which he
puts to the supervisors. The supervisor is required to give his opinion about the
progress of his subordinates, the level of the performance of each subordinate,
his weakness, good points, outstanding ability, and promotability, and the
possible plans of action in cases requiring further consideration.
MODERN METHOD OF APPRAISAL:
Appraisal by Results Management by Objectives(MBO):
This method emphasizes the value of the present and the future instead of that of the
past, and focuses attention on the results that are accomplished and not on personal
traits or operational methodology. An employee is not judged in terms of operational
methodology, or in terms of initiative, cooperativeness, attitude, emotional stability, or
any other human quality, but on the basis of the achievement of the targets that have
been set. This method is largely applied to technical, professional, supervisory or
execute personnel and not to the hourly paid workers because their jobs are usually
too restricted.
Under MBO programme, an employee and his supervisory meet and together define,
establish and set certain goals or objectives which the employee would attempt to
achieve within the period of, prescribed time.
It consists of five basic steps:
Set organizational goals i.e., establishment of an organization wide strategy and
goals.
Joint goals setting i.e., establishment of short term performance targets between
the management and the subordinate in a conference between them.
Performance review i.e., frequent performance review meetings between the
manager and the subordinate.
Set check points i.e., establishment of major check points to measure progress.
Feed back.
Assessment Center Method:
Under this method, many evaluations join together to judge employee performance in
several situations with the use of a variety of criteria. The purpose of this method was
end is to test the candidates in a social situation using a number of assessors and a
variety of procedures. The most important feature of this is job related simulations.
Human Asset Accounting Method:
This method refers to activity devoted to attaching money estimates to the value of a
firm’s internal human organization and its external customer goodwill. If able, well
trained personnel leave a firm, the human organization is worthless if they join it, its
human assets are increased. If distrust and conflict prevail, the human enterprise
devalued. If team work and high moral prevail, the human organization is a very
valuable asset.
Behaviorally Anchored Rating Scales(BARS):
This is a new technique for appraisals. It provides better, more equitable appraisals as
compared to other techniques. Though bars technique is more time consuming and
expensive than other appraisal tools. Since bars is done by person’s expert in the
technique, the results are sufficiently accurate. It has got certain advantages:
More accurate
It clearly clarifies what we extremely good performance, average performance &
so forth.
More useful in providing feedback to the people being appraised.
Helps in making dimensions more independent if one another.
ESSENTIALS OF A GOOD PERFORMANCE APPRAISAL SYSTEM.
1.Documentation : Means continuous noting and documenting the
performance. It also helps the evaluations to
give a proof and the basis of their ratings.
2.Standards/Goals : The standards set should be clear, easy to
understand, achievable, motivating time bound
and measurable.
3.Practical and simple format : The appraisal format should be simple,clear, fair
and objective.
4.Evaluation technique : An appropriate evaluation technique should be
selected, the appraisal system should be
performance based and uniform.The criteria for
evaluation should be based on observable and
measurable characteristics of the behavior of the
employee.
5.Communication : Communication is an indispensible part of the
performance appraisal process. The desired
behavior or the expected results should be
communicated to the employees as well as the
evaluators. Modern communication system
motivates the employees to actively participate
in the appraisal process.
REVIEW OF LITERATURE :
Fletcher C, Performance appraisal and management, November 4, 2001:
Performance appraisal has widened as a concept and as a set of practices and in the
form of performance management has become part of a more strategic approach to
integrating HR activities and business policies. As a result of this, the research on the
subject has moved beyond the limited confines of measurement issues and accuracy of
performance ratings and has begun to focus more of social and motivational aspects of
appraisal. This article identifies and discusses a number of themes and trends that
together make up the developing research agenda for this field. It breaks these down
in terms of the nature of appraisal and the context in which it operates. The former is
considered in terms of contemporary thinking on the content of appraisal (contextual
performance, goal orientation and self awareness) and the process of appraisal
(appraiser–appraisee interaction, and multi-source feedback). The discussion of the
context of appraisal concentrates on cultural differences and the impact of new
technology.
David A. Waldman, Predictors of Employee Preferences for Multirater and
Group-Based Performance Appraisal, 1997: This study conceptualizes and
measures user preferences for 360-degree appraisals and group-level performance
management (PM). Users are defined as either recipients of PM processes or those
whose job it is to administer the process. Aspects of individual users, their work
design, and current appraisal context were used to predict preferences.. Predictors
explained significant amounts of variance in user preferences, especially those
pertaining to group-level PM. Practical implications are suggested with regard to
collecting and using user preferences. In addition, suggestions for future research are
offered concerning the need to examine a broad range of users in different
organizational settings and to measure actual system design features and their
effectiveness.
Taylor Cox, Differential Performance Appraisal Criteria, 1986 :
Gregory H. Dobbins, A Contingency Approach to Appraisal Satisfaction, 1990:
OBJECTIVES OF THE STUDY :
Primary Objective
To assess the level of awareness of performance appraisal system in the
organization.
Secondary Objectives
To find out the effectiveness of the performance appraisal system in the
organization.
To identify the attitude of employees about performance appraisal system in the
organization.
To identify on what basis employee’s performance are assessing.
To know the procedure/process of Performance Appraisal.
To know the methods of performance appraisal.
CHAPTER-2
RESEARCH METHODOLOGY
Research Methodology:
The research has been developed on the basis of the survey. Research is something which gives at the end of the day the analyzed and a concrete result of the report. Concrete means some research which is supported by some authentic proof. The research methodology is a systematic way to solve the problem and it is an important component of the study without which researcher may not be able to obtain the facts and figures from the employees.
Research Design :
Research design is purely and simply the frame work or plan for a study that guides the collection analysis of the data. In this study select the research design is descriptive research.
Sampling :
Sampling units : J K Tyre Office,BANMORE
Element : EMPLOYEES/PEOPLE
SAMPLE SIZE : 50 RESPONDENTS
Data Collection Techniques :
The required data is collected both from primary as well as secondary sources.
Primary Sources: The primary data is collected with the help of questionnaires, which consists of ten questions each. The questionnaires are chosen because of its simplicity and reliability. Researcher can expect straight answers to the questions. The respondents are informed about the significant of the study and requested to give their fair opinions.
Secondary Sources: Secondary data is the data, which is collected and complied for different purposes, which are used in research for this study. Secondary data is collected through the documents provided by the personnel department. The documents include personnel manuals, company’s documents, records, reports, journal, etc.
Method used for analysis of study :
The methodology used for this purpose is Survey and Questionnaire Method. A questionnaire technique will be used in order to obtain data and employees will be asked to give the answers of questions in accordance to their best knowledge.
Analysis of Data :
After the data have been collected, the researcher turns to the task of analyzing them. The analysis of data requires a number of closely related operations such as establishment of categories, the application of these categories to raw data through coding, tabulation and then drawing statistical inferences. Thus researcher should classify the raw data into some purposeful and usable categories. In the process of analysis, relationships or differences supporting or conflicting with original or new hypotheses should be subjected to tests of significance to determine with what validity data can be said to indicate any conclusion.
Interpretation :
The interpretation is done on the basis of the analyzed data and also some recommendations are given to fill the loophole (a way of avoiding something stipulated by a law or contract) of the actual scenario.
CHAPTER-3
RESULTS AND DISCUSSION
DATA ANALYSIS AND INTERPRETATION
Research is conducted for finding the solution of the problem. So to find the solution of the problem data analysis and interpretation is must. There are some questions related to this research to interpret the result. The sample size in this study consisted of 50 individuals and data analyzed from the response of these 50 individuals.
1. ARE YOU AWARE OF THE PERFORMANCE APPRAISAL SYSTEM IN YOUR ORGANIZATION ?
The basic purpose of this question is to know about how many people are aware of the performance appraisal system.
1 yesno
Analysis:-
This table shows that all the 50 individuals were aware of performance appraisal system in the organization.
RESPONSES NO.OF RESPONSES % OF RESPONSES
Yes 50 100
No 0 0
Total 50 100
2.DO YOU THINK PERFORMANCE APPRAISAL IS NEEDED IN A COMPANY ?
The basic purpose of this question is to know about how many people think that performance appraisal is needed/required in a company.
1 yesno
Analysis:-
This chart shows that almost all the employees thought that the performance appraisal is needed in a company.
3.HOW LONG ONCE THEY CONDUCT THE PERFORMANCE APPRAISAL?
RESPONSES NO.OF RESPONSES % OF RESPONSES
Yes 50 100
No 0 0
Total 50 100
The basic purpose of this question is to know about the periodic evaluation of performance appraisal .
68%
32%
once in every yearonce in two year
Analysis:-
The above table clearly shows that from a sample size of 50 respondents, 34 number of employees opinion is that the performance appraisal is conduct once in every year, while remaining 16 number of employees opinion is that the performance appraisal is conduct once in two year.
4. ON WHAT BASIS THEY ARE ASSESSING YOUR PERFORMANCE ?
CATEGORY NO.OF RESPONSES % OF RESPONSES
Once in every year 34 68
Once in two year 16 32
Total 50 100
The basic purpose of this question is to know that on what basis the superior assess the employees performance.
32%
48%
20%
actual performanceexperienceall the above
Analysis:-
OPTIONS NO.OF RESPONSES % OF RESPONSES
Actual performance
16 32
Qualification 0 0
Experience 24 48
All the above 10 20
Total 50 100
Above 16 employees responded that, the superior assess their performance due to
Actual Performance, 24 number of employees said due to Experience and
remaining 10 employees is due to all the above.
5.DO YOU THINK THAT A GOOD WORKMEN GETS MOTIVATED WITH
FREQUENT PERFORMANCE APPRAISAL?ARE YOU SATISFIED WITH
THIS ?
88%
12%
yesno
Analysis:-
RESPONSES NO.OF RESPONSES % OF RESPONSES
Yes 44 88
No 6 12
Total 50 100
A majority of 44 number of employees said that a good workman gets motivated
with frequent Performance Appraisal and 6 number of employees are not
satisfied with above.
6.ARE YOUR ANNUAL INCREMENTS/PROMOTIONS BASED ON YOUR
PERFORMANCE ?
This question was asked to the employees to know if the annual
increments/promotions are based on their performance or not.
78%
18%
4%
yesnocan't say
Analysis:-
RESPONSES NO.OF RESPONSES % OF RESPONSES
Yes 39 78
No 9 18
Can’t say 2 4
Total 50 100
39 number of the respondents say that the annual increments/promotions are
based on their performance. 9 number of the respondents say that the annual
increments/promotions are not based on their performance while remaining 2
respondents can’t say or their answers are inapplicable.
7.TO WHAT EXTENT DO TRAINING & DEVELOPMENT PROGRAMMES
HELP IN IMPROVING YOUR PERFORMANCE ?
This question was asked to the employees to know how far the training and
development programme is helping the employees to learn and work better.
Particulars No. of respondents Percentage of respondents
To great extent 11 22%
To some extent 35 70%
To very little extent 4 8%
Total 50 100%
22%
70%
8%
to great extentto some extentto very little extent
Analysis:-
11 no.of respondents say that the training and development programs help to a
great extent to improve their performance, while 35 no. of respondents say that it
help to some extent to improve their performance & remaining 4 respondents say
that it help to a very little extent to improve their performance.
8.DO YOU HAVE A GOOD RELATIONSHIP WITH APPRAISER AFTER
PERFORMANCE APPRAISAL ?
This question was asked to the employees to know the good relationship between the
appraiser and employees after performance appraisal.
88%
12%
yesno
RESPONSES NO.OF RESPONSES % OF RESPONSES
Yes 44 88
No 6 12
Total 50 100
Analysis:
A Majority of 44 respondents have the good relationship with appraiser after
Performance appraisal while rest of 6 respondents is not having a good
relationship with appraiser after Performance appraisal.
CHAPTER-4
FINDINGS
FINDINGS :
100 % of the employees are aware of the performance appraisal system in the
organization.
100 % of the employees thought that the performance appraisal is needed in a
company.
68 % of the employee’s opinion is that the performance appraisal is conduct once
in every year.
32% employees responded that, the superior assess their performance due to
Actual Performance, 48% number of employees said due to Experience and
remaining 20% employees is due to all the above.
88% of employees said that a good workman gets motivated with frequent
Performance Appraisal.
78% of the employees say that the annual increments/promotions are based on
their performance. 18% employees say that the annual increments/promotions
are not based on their performance while remaining 4% can’t say.
Only 22% employees agree that the training and development programs help to a
great extent to improve their performance, while 70% employees say that it help
to some extent to improve their performance & 8% employees say that it help to
a very little extent to improve their performance.
88% employees have the good relationship with appraiser after Performance
appraisal.
CHAPTER-5
SUGGESTIONS
SUGGESTIONS :
Proper feedback should be given at fixed time periods, so that the employees
increase their performance based on their remarks.
Besides highlighting the negatives of the employees, adequate programs for self-
development must be provided.
Management should continue getting promotions on seniority basis, as it is most
preferred by the employees.
Supervisors could try to influence employees and enhance their performance
through more personal interaction.
Employees of the organization are satisfied with the current level of performance
appraisal system and hence this system should implement more as the employees
feel that it could help better their job performance.
The supervisor should try to analyze the strengths and weaknesses of an
employee and advise him on correcting the weakness.
Effective training and development programs should be held so as to enhance or
improve employee’s performance.
Suggestions and innovations should be encouraged and rewards should be given
for unique achievements of the employees.
CHAPTER-6
CONCLUSION
CONCLUSION :
REFERENCES
Books
Human Recourse & Management, K.Aswathappa.
Appraising performance, T.V. Rao.
Research Methodology, David .R. Cooper and Schindler.
Websites
www.jktyre.com .
www.google.com
www.wikipedia.com
ANNEXURE
QUESTIONAIRE
I am a student of M.B.A. from Institute of Technology & Management, Sithouli, Jhansi Road . You are required to fill this questionnaire to enable me to undertake the study on the said project.
NAME: _________________________________
DESIGNATION: _________________________________
DEPARTMENT: _________________________________
EXPERIENCE: _________________________________
1. Are you aware of the Performance Appraisal System in your organization ? (a) Yes (b) No
2. Do you think Performance Appraisal is needed in a company ? (a) Yes (b) No
3. How long once they conduct the Performance Appraisal ? (a) Once in every year (b) Once in two year
4. On what basis they are assessing your performance ? (a) Actual Performance (b) Qualification
(c) Experience (d) All the above
5. Do you think that a good workmen gets motivated with frequent Performance Appraisal ? Are you satisfied with this ? (a) Yes (b) No
6.Are your annual increments / promotions based on your performance ? (a) Yes (b) No (c) Can’t Say
7.To what extent do training & development programs help in improving your performance ? (a) To great extent (b) To some extent (c) To very little extent
8. Do you have a good relationship with appraiser / supervisor after Performance Appraisal ? (a) Yes (b) No
9.What is your expectations and suggestions to improve performance appraisal system ?
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