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    Tata Marcopolo Motors Limited, Dharwad

    INDEX

    CHAPTER TITLE PAGE No.

    1. EXECUTIVE SUMMARY 2

    2. COMPANY PROFILE 6

    3. INTRODUCTION TO PERFORMANCE APPRAISAL 18

    4. DATA ANALYSIS AND INTERPRETATION 35

    5. A. FINDINGS 46

    B. SUGGESTIONS & CONCLUSION 47

    6. BIBLIOGRAPY 4!

    7. "UESTIONNAIRE"UESTIONNAIRE 5#

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    Tata Marcopolo Motors Limited, Dharwad

    ($ To prepare and help employees to accept the performance appraisal system.

    D% C'*%(

    P+ (%

    )rimary data was collected by interacting with the organization employees, arious

    departmental managers and through questionnaire.

    *uestionnaire was prepared and e+plained to the respondents so as to access them in giing

    prompt and unbiased response.

    S*'$( (%

    The secondary data was collected with the help of organization manuals and from the

    records of indiidual employees.

    D% *'*%+'$ %-'(-urey method consisting of structured questionnaire to employees.

    M)$% %*-$+9) M- +cel

    S/ S+:'/ respondents

    S/+$; M%-'(-imple random sampling method.

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    Tata Marcopolo Motors Limited, Dharwad

    F+$(+$;

    0ut of the sureyed employees 1(2 belong to production, #(2 belong to 34, %/2 belong

    to accounts.

    5/2 of the employees stated that they need performance appraisal in organization, #/2 said

    they do not need.

    #/2 stated that performance appraisal to be done quarterly, #(2 wanted it half yearly and

    6(2 of the employees wanted performance appraisal to be done yearly.

    6(2 of the employees said performance appraisal motiates the employees and %(2 did not

    agree.

    %(2 of the employees said performance appraisal reduces absentees, %/2 of the employees

    said it reduces employee turnoer, %/2 of the employees said it improes efficiency and

    &(2 of the employees said it enhances productiity.

    '(2 of the employees told they wanted performance appraisal to be done by superior,&(2

    of the employees wanted self appraisal,(2 of the employees appraisal to be done by

    consultant and #(2 of the employees said appraisal should be done by all.

    '(2 of the employees said that performance appraisal is done to assess the employee, %(2

    of the employees said to assess the training needs and &/2 of the employees said appraisal

    is done for promotion.

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    Tata Marcopolo Motors Limited, Dharwad

    1(2 of the employees told that transparency of performance appraisal is ery important,

    %(2 said it7s important, (2 said it7s least important and een not important.

    &(2 told that salary increase motiates the most and remaining said incenties, promotions

    and recognition motiates.

    6(2 of the employees said that promotion should be performance band remaining %(2 said

    it should be tenure based.

    8(2 of the employees said that organization should hae separate committee to reiew the

    performance appraisal.

    S);;%+'$

    )erformance appraisal should be yearly assessed.

    )erformance appraisal motiates employees so it should be fair and transparently done by

    the organization.

    )erformance appraisal should concentrate on promotion else it should be incentie based.

    )romotion must be purely based on performance of the employee

    0rganization should adopt &1/ degree performance appraisal or self appraisal.

    -eparate committee has to be formed for performance appraisal in the organization

    L++%%+'$ ', %- %)(

    #. Time constraints 9 -ufficient time for study:surey was not aailable.

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    Tata Marcopolo Motors Limited, Dharwad

    %. ;on respondent 9 t will go on stream in a yearBs time, and

    produce a ariety of buses including #1 to ('?seater standard buses, #8 and '(?seater lu+ury buses,

    lu+ury coaches, and low?floor city buses. The joint enture will also e+plore emerging opportunities

    in Cus 4apid Transit -ystem.

    The joint enture will take help with technology and e+pertise in chassis and aggregates

    from Tata Motors, and e+pertise and know?how in processes and systems for bodybuilding and bus

    body design from Marco polo. Coth companies will actiely participate in the management. The

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    Tata Marcopolo Motors Limited, Dharwad

    buses will conform to international standards in quality and safety, and will be marketed not only in

    >ndia but also in all Tata Motors focussed markets globally.

    The @hairman of Tata Motors, Mr 4attan ;. Tata, said, the rapidly e+panding and

    improing road network, connecting cities and also rural areas, is e+pected to substantially grow

    passenger transport. The joint enture with Marco polo, which is one of the largest bus body

    builders, will enable Tata Motors to successfully address the growing demand in >ndia, as well as

    releant markets abroad.

    The @hairman of Marco polo, Mr )aulo Cellini, said, Marco polo7s buses and coaches hae

    a strong presence in Latin =merica, and oerseas markets. The joint enture with Tata Motors will

    help us e+tend our presence in the high?potential markets of >ndia and also other mutually agreed

    countries, which we can jointly deelop.

    A')% T% '%'

    Tata Motors, the flagship company of the Tata Aroup, is >ndiaBs largest automobile

    company, with reenues of -E '.6 billion in %//'?/(. Fith oer & million Tata ehicles plying in

    >ndia, it is the leader in commercial ehicles and the second largest in passenger cars. >t is also the

    worldBs fifth largest medium and heay truck manufacturer and the second largest heay bus

    manufacturer. Tata cars, buses and trucks are already being marketed in seeral countries in urope,

    =frica, the Middle ast, -outh =sia, and -outh ast =sia and in =ustralia. The company acquired

    the Daewoo @ommercial Gehicles @ompany, HoreaBs second largest truck maker, in %//'. >n %//(,

    it acquired a %#2 stake in 3ispano @arrocera, the reputed -panish bus and coach manufacturer.

    A')% T% Marcopolo M'%' L++%(

    Celur >ndustrial area, Mummigatti, Dharwad (8///6

    Iear of stablishment 9 May %//8

    )hone no /8&1?1'(#665

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    Tata Marcopolo Motors Limited, Dharwad

    Febsite www.tatamarcopolo.com

    ;ature of @ompany Joint stock

    )roduct Cuses KL@G, M@G, 3@G$

    Market >ndia, =ustralia, urope

    ;umber of employees %8//

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    Tata Marcopolo Motors Limited, Dharwad

    )arts area : machinery shop

    Tata Motors is committed to improing the quality of life of communities by working

    on four thrust areas 9 employability, education, health and enironment. The actiities touch the

    lies of more than a million citizens. The @ompanyBs support on education and employability is

    focused on youth and women. They range from schools to technical education institutes to

    actual facilitation of income generation. The goal of enironment protection is achieed through

    tree plantation, consering water and creating new water bodies and, last but not the least, by

    introducing appropriate technologies in our ehicles and operations for constantly enhancing

    enironment care.

    *=L>TI )0L>@I

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    Tata Marcopolo Motors Limited, Dharwad

    >n #56#, thanks to the success obtained with the introduction of the Marcopolo bus, it

    changed its name to Marcopolo -.=. The continuous growth consolidated the organization

    which has already produced in its factories in Crazil and abroad, in these (5 years, %//.///

    buses with a current work force of more than #%./// collaborators.

    Marcopolo is a leading company of a Crazilian conglomerate engaged in manufacturing

    of bus and coaches bodies sold all oer the world.

    Marcopolo produces whole range of buses like mini buses, Medium buses and standard

    coaches. >t e+ports worldwide to more than 1/ countries.

    0er the years, it has acquired certain technology e+pertise and know?how for the

    design, engineering and production of bodies in the worldwide bus market.

    Marcopolo inests heaily in technology and product improement.

    T% M*'/'' M'%' L%( >TMML?

    TMML is a (#'5 joint enture company of TML and Marcopolo for manufacturing fully

    built buses and coaches in >ndia.

    The first manufacturing operations of TMML hae been setup in Lucknow and second one

    is setup at Dharwad for production of buses.

    TMML has employed best practices followed at arious urope, -outh =merica and

    - locations in production process, engineering design and =ssembly process with hand?holding

    support from Marcopolo -= engineers and technicians. Cest in class @=M:@=D:@= software are

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    Tata Marcopolo Motors Limited, Dharwad

    used to deelop bus body design, process planning, process engineering, assembly line planning

    and design and production planning.

    >n the production process it use state of art machinery and equipment which include

    Turret )unch, @;@ plasma cutting, @;@ tube cutting, @;@ horizontal tube bending, laser cutting,

    shearing, M>A:M=A:T>A welding machines, sophisticated manual?pneumatic?electrical hand tools

    in different stages like chassis preparation, skeleton manufacturing, panelling, painting, pre

    assembly, pre deliery inspection and shower test.

    -pecial jigs are utilized in skeleton manufacturing, adanced painting process with

    capabilities to paint arious shade combinations and certain processes new to >ndian bus body

    industry. TMML hae tradition of training >ndian engineers to >nternational standards in Tata

    Motors and Marcopolo -=, Crazil to assimilate latest technology to implement at TMML.

    TMML7s production process consists of the following major stagesN

    C-+ //%+'$

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    Tata Marcopolo Motors Limited, Dharwad

    This is the initial stage wherein chasis receied from Tata motors is prepared for mounting

    bus body onto the chasis.

    S@%'$ $),*%)+$;

    This stage inoles manufacturing and assembling the structure of the bus body using

    rectangular tubes manufactured by arious operations and finally assembling them on arious jigs

    by welding operation.

    P$+$;

    )anels made of A> sheets are affi+ed onto the manufactured skeleton, front and rear n this stage ready buses are checked for their conformity with set standards before they are

    sent for shower test after which buses are ready for dispatch.

    R= %+ $( P%

    The major raw materials and parts required for manufacture of bus bodies will be manufactured by

    suppliers at Lucknow, Dharwad and arious other parts of country.

    ORGANIATIONAL STRUCTURE OF TMML

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    Tata Marcopolo Motors Limited, Dharwad

    P++$ /'* ,'=

    KLESS IMSR, HUBLI. Page 14

    HR CFOCOO

    Materials &

    supply chain

    Manuacturin!"lannin! &

    #n!ineerin!

    $en%r

    'e(elp)ent

    "r%uct

    'e(elp)ent& %esi!n

    "r%ucti

    "urchase

    "rcure)ent

    *uality

    cntrl

    "r%ucti

    n Facility

    +!istics &

    stres "r%uctin

    plannin! &cntrl

    "rcess

    plannin!

    Facility

    plannin!

    Maintenance

    C#O

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    Tata Marcopolo Motors Limited, Dharwad

    R*- %-'('';

    KLESS IMSR, HUBLI. Page 15

    Chassis

    Preparation

    Skeleton

    Assembly

    Structure

    Assembly

    o!y an!

    Chassis Couplin"

    General #

    ComplementAnti$

    Corrosion

    Treatment

    Roo% &ront #

    Rear

    Assembly

    'ec.connectins#

    Si!e Panelin"

    &loor

    Assembly

    #Componen

    Si!e Panelin" #

    &laps Assembly

    &loor Train

    # Tapestry

    Paint # Assembly

    Check

    Sur%ace

    San!in" #

    Puttin"

    #Paintin"

    Insulation

    ase Color#

    akin"(Curin

    Paint # )uality

    Check Area

    Saloon seat

    #Comp.mouitin"*in!shiel! #

    *in!o+s

    &ittin"

    Internal Trim

    # Comp.

    assembly

    E,ternal trim

    #comp.

    Assembly

    Hea!lamps

    #Rear Lamps

    Assembly

    &inal )uality

    Check Gate

    Sho+er Test

    # Roa! Test

    Complete built

    -nit ar!

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    Tata Marcopolo Motors Limited, Dharwad

    4esearch methodology is a scientific and systematic way to sole research problem. =

    researcher has to design the methodology that is in addition to the knowledge of method technique

    researcher has to apply the methodology as well. Methodology is nothing but a method adopted by

    the researcher.

    T'/+* ', %- %)(

    The study aimed at understanding the need for performance appraisal in TATA

    MARCOPOLO< Dharwad.

    O0*%+

    #. To identify whether the employees need the performance appraisal system.

    %. >t helps to identify employee7s potential, determines employees need for training, future

    promotion, career planning, reduce attrition and help them to retain good performers and

    counsel low performers to do better.

    &. To know whether performance appraisal can contribute to the firms competitie adantage.

    '. To make the employees understand importance of performance appraisal and set objecties

    for them.

    (. To prepare and help employees to accept the performance appraisal system.

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    Tata Marcopolo Motors Limited, Dharwad

    S%)( (+;$

    The researcher wanted to know the need for performance appraisal in the organization,

    descriptie research design is identified as more appropriate for the present study.

    P'/)%+'$ $( /

    The present study is conducted in T=T= M=4@0)0L0 M0T04- L>M>TD, Dharwad.

    The total number of employees in the company is %8//. The researcher was permitted to access the

    following departments )roduction, Marketing, and n the main surey the questionnaire were distributed

    to the respondents. =ll the respondents were contacted personally to e+plain about the research. >n

    addition to that sufficient e+planation was also gien with regard to questions, which are included

    in the questionnaire.

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    D% $+ & +$%/%%+'$

    The data analysis helps to summarize in such a manner that it yields answer to objecties of

    the study, the collected data were classified codes were gien transferred into table. =fter the

    data were tabulated, analyzed interpretation was made according to objecties of the study. The

    researcher calculated simple percentages to analyze and interpret the data.

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    3. I$%'()*%+'$ %' /,'$* //+

    P,'$* A//+

    )erformance appraisalis the process of obtaining, analyzing and recording information

    about the relatie worth of an employee. The focus of the performance appraisal is measuring and

    improing the actual performance of the employee and also the future potential of the employee. >ts

    aim is to measure what an employee does.

    =ccording to t is a powerful tool to calibrate, refine and reward the performance of the employee. >t helps

    to analyze his achieements and ealuate his contribution towards the achieements of the oerall

    organizational goals.

    KLESS IMSR, HUBLI. Page 19

    http://appraisals.naukrihub.com/http://appraisals.naukrihub.com/performance-review.htmlhttp://appraisals.naukrihub.com/performance-review.htmlhttp://appraisals.naukrihub.com/
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    Tata Marcopolo Motors Limited, Dharwad

    O0*%+ ', P,'$* //+ To reiew the performance of the employees oer a gien period of time.

    To judge the gap between the actual and the desired performance.

    To help the management in e+ercising organizational control.

    3elps to strengthen the relationship and communication between superior 9 subordinates

    and management 9 employees.

    To diagnose the strengths and weaknesses of the indiiduals so as to identify the training

    and deelopment needs of the future.

    To proide feedback to the employees regarding their past performance.

    )roide clarity of the e+pectations and responsibilities of the functions to be performed by

    the employees.

    To judge the effectieness of the other human resource functions of the organization such as

    recruitment, selection, training and deelopment

    - /,'$* //+

    )erformance appraisals of mployees are necessary to understand each employee7s abilities,

    competencies and relatie merit and worth for the organization. )erformance appraisal rates the

    employees in terms of their performance. )erformance appraisal is necessary to measure the

    performance of the employees and the organization to check the progress towards the desired goals

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    and aims. )erformance appraisal helps to rate the performance of the employees and ealuate their

    contribution towards the organizational goals.

    >f the process of performance appraisals is formal and properly structured, it helps the

    employees to clearly understand their roles andresponsibilities and gie direction to the

    indiidual7s performance. >t helps to align the indiidual performances with the organizational

    goals and also reiew their performance.)erformance appraisal takes into account the pastperformance of the employees and focuses on the improement of the future performance of the

    employees.

    PURPOSE OF PERFORMANCE APPRAISAL )erformance =ppraisal is being

    practiced in many of the organizations worldwide.

    )erformance =ppraisal is aimed at

    To reiew the performance of the employees oer a gien period of time.

    To judge the gap between the actual and the desired performance.

    To help the management in e+ercising organizational control.

    To diagnose the training and deelopment needs of the future.

    )roide information to assist in the 34 decisions like promotions, transfers etc.

    )roide clarity of the e+pectations and responsibilities of the functions to be performed by

    the employees.

    To judge the effectieness of the other human resource functions of the organization such as

    recruitment, selection, training and deelopment.

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    To reduce the grieances of the employees.

    3elps to strengthen the relationship and communication between superior 9 subordinates

    and management 9 employees.

    B$,+% ', A//+

    )erhaps the most significant benefit of appraisal is that, in the rush and bustle of daily

    working life, it offers a rare chance for a superisor and subordinate to hae time out for a one?

    on?one discussion of important work issues that might not otherwise be addressed. =lmost

    uniersally, where performance appraisal is conducted properly, both superisors and subordinates

    hae reported the e+perience as beneficial and positie. =ppraisal offers a aluable opportunity to

    focus on work actiities and goals, to identify and correct e+isting problems, and to encourage

    better future performance. Thus the performance of the whole organization is enhanced.

    M'%+%+'$ $( S%+,*%+'$

    )erformance appraisal can hae a profound effect on leels of employee motiation and

    satisfaction. )erformance appraisal proides employees with recognition for their work efforts. The

    power of social recognition as an incentie has been long noted. >n fact, there is eidence that

    human beings will een prefer negatie recognition in preference to no recognition at all. >f nothing

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    else, the e+istence of an appraisal program indicates to an employee that the organization is

    genuinely interested in their indiidual performance and deelopment.

    This alone can hae a positie influence on the indiidualBs sense of worth, commitment and

    belonging. The strength and prealence of this natural human desire for indiidual recognition

    should not be oerlooked. =bsenteeism and turnoer rates in some organizations might be greatly

    reduced if more attention were paid to it. 4egular performance appraisal, at least, is a good start.

    T+$+$; $( D'/$%

    )erformance appraisal offers an e+cellent opportunity?perhaps the best that will eer occur

    for a superisor subordinate to recognize agree upon indiidual training deelopment needs.

    During the discussion of an employeeBs work performance, the presence or absence of work

    skills can become ery obious ? een to those who habitually reject the idea of training for themO

    )erformance appraisal can make the need for training more pressing and releant by linking it

    clearly to performance outcomes and future career aspirations.

    >n this respect, performance appraisal can proide a regular and efficient training needs

    audit for the entire organization.

    R*)+%$% $( I$()*%+'$

    =ppraisal data can be used to monitor the success of the organizationBs recruitment and

    induction practices.

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    Tata Marcopolo Motors Limited, Dharwad

    past two yearsP =ppraisal data can also be used to monitor the effectieness of changes in

    recruitment strategies. Cy following the yearly data related to new hires it is possible to assess

    whether the general quality of the workforce is improing, staying steady, or declining.

    E/' E)%+'$

    Though often understated or een denied, ealuation is a legitimate and major objectie of

    performance appraisal .Cut the need to ealuate Ki.e., to judge$ is also an ongoing source of tension,

    since ealuatie and deelopmental priorities appear to frequently clash.

    Iet at its most basic leel, performance appraisal is the process of e+amining and ealuating

    the performance of an indiidual. Though organizations hae a clear right ? some would say a duty ?

    to conduct such ealuations of performance, many still recoil from the idea. To them, the e+plicit

    process of judgment can be dehumanizing and demoralizing and a source of an+iety and distress to

    employees. >t is been said by some that appraisal cannot sere the needs of ealuation and

    deelopment at the same timeN it must be one or the other. Cut there may be an acceptable middle

    ground, where the need to ealuate employees objectiely, and the need to encourage and deelop

    them, can be balanced.

    B$,+% ,' /'

    >f the appraisal system is user?friendly and well administered then they should find that it

    encourages the staff to perform well and perhaps seek career adancement. >t allows the staff an

    opportunity to hae the undiided attention of their line manager so that theycan put forward their

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    iews and ideas on a one?to?one basis. During the meeting the staff membercan arrie at the true

    alue of their position to the company and gauge how well they are fulfillingtheir function.

    Fhether we like haing the actual appraisals or not, by proiding guidance and

    demonstrating how to improe performance they do become ery much appreciated.

    >n an ideal world the line manager will hae already acknowledged outstanding performance

    as it happens. Cut when a business is doing well and people are busy it is easy to oerlook those

    that are creating the success. The appraisal proides the opportunity to record it formally.

    Training needs can be identified and a training plan or objecties agreed with the employee.

    >t may also be an appropriate time to discuss career opportunities and career plans.

    B$,+% ,' %- C'/$

    >f company has a culture where staff feels that they hae some control oer their own

    deelopment and hae an understanding of how their performance and skills can contribute to the

    success of thecompany, they will be more motiated and more committed to helping the company

    achiee itsgoals and objecties.

    =n effectie appraisal system is just one of the measures that will help the employees know

    that their efforts to do a good job are recognized by management, and their iews and

    opinions are being listened. mployees are likely to be more productie and more willing to put in

    that little bit e+tra when needed if an effectie appraisal system is being employed.

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    'ETH/0S /& PE&/R'ANCE APPRAISAL

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    R$@+$;. ? The term ranking has been used to describe an alternatie method of performance

    appraisal where the superisor has been asked to order his or her employees in terms of

    performance from highest to lowest.

    F'*( C-'+* M%-'(. ? This appraisal method has been deeloped to preent ealuators

    from rating employees to high. sing this method, the ealuator has to select from a set of

    descriptie statements, statements that apply to the employee. The statements hae been weighted

    and summed to at, effectieness inde+.

    F'*( D+%+)%+'$.? The term used to describe an appraisal system similar to grading on a

    cure. The ealuator had been asked to rate employees in some fi+ed distribution of categories. 0ne

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    way to do this has been to type the name of each employee on a card and ask the ealuators to sort

    the cards into piles corresponding to rating.

    P+( C'/+'$.? The term used to describe an appraisal method for ranking employees.

    f the rater

    belieed the employee possessed a trait listed, the rater checked the itemN if not, the rater left the

    item blank. rating score from the checklist equaled the number of checks.

    B-+' A$*-'( R%+$; S*. ? The term used to describe a performance rating that

    focused on specific behaiors or sets as indicators of effectie or ineffectie performance, rather

    than on broadly stated adjecties such as aerage, aboe aerage, or below aerage.

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    C+%+* I$*+($% T*-$+9).? The term used to describe a method of performance appraisal

    that made lists of statements of ery effectie and ery ineffectie behaior for employees. The lists

    hae been combined into categories, which ary with the job. 0nce the categories had been

    deeloped and statements of effectie and ineffectie behaior had been proided, the ealuator

    prepared a log for each employee. During the ealuation period, the ealuator recorded e+amples of

    critical behaiors in each of the categories, and the log has been use to ealuate the employee at the

    end of the ealuation period.

    M$;$% O0*%+. ? The management by objecties performance appraisal method

    has the superisor and employee get together to set objecties in quantifiable terms. The appraisal

    method has worked to eliminate communication problems by the establishment of regular meetings,

    emphasizing results, and by being an ongoing process where new objecties hae been established

    and old objecties had been modified as necessary in light of changed conditions.

    36# D; A//+ &1/ degree feedback, also known as Bmulti?rater feedbackB, is the most

    comprehensie appraisal where the feedback about the employees7 performance comes from all the

    sources that come in contact with the employee on his job. 0rganizations are increasingly using

    feedback from arious sources such as peer input, customer feedback, and input from superiors.

    Different forms with different formats are being used to obtain the information regarding the

    employee performance.

    PERFORMANCE APPRAISAL AND COMPETITIVE ADVANTAGE

    The objecties of performance appraisal, listed aboe, point out the purpose which such an e+ercise

    seeks to meet. Fhat needs emphasis is that performance ealuation contributes to firmBs

    competitie strength. Cesides encouraging high leels of performance, the ealuation system helps

    identify employees with potential, reward performance equitably and determine employeeBs need

    KLESS IMSR, HUBLI. Page 29

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    for training. -pecifically, performance appraisal helps an organization gain competitie edge in the

    following ways Ksee

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    E$)+$; L; C'/+$*

    )romotions made on factors other than performance might land up a firm in a legal battle, thus

    dierting its focus on non?productie areas, as it happened to Filliamson Magar. 0rganizations can

    minimize costly performance?related litigation by using appraisal systems that gie fair and

    accurate ratings.

    M+$++:+$; ' D+%+,*%+'$ $( T)$'

    mployees tend to become emotional and frustrated if they perceie that the ratings they get are

    unfair and inaccurate. -uch employees find that the efforts they had put in became futile and

    obiously get de?motiated.

    Dissatisfaction in the job sets in and one of the outcomes of job dissatisfaction is increased

    turnoer.

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    #. t is also possible to define the rate

    at multiple leels.

    KLESS IMSR, HUBLI. Page 32

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    %. F' V +$,' //+ ? the first step in designing an appraisal programme is to decide

    whether the appraisal should be formal or informal.

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    information. Fhere appraisal is made by the superior, peers, subordinates and clients, it is called the

    &1/?degree system of appraisal.

    e. >n self 9appraisal employee himself or herself ealuates his or her own performance. >ndian

    Telephone >ndustries has been following the self?appraisal system for e+ecuties in grade > to >G.

    3ewlett?)ackard and Te+as >nstruments too ask their performance to prepare their own appraisal.

    0n the positie side it may be stated that in self?appraisal there is an opportunity to participate in

    ealuation particularly if it is combine with goal setti5ng and this should be improe the mangers

    motiation. Managers are less defensie in self?ealuation than when superisors tell them what

    they are.

    4. P' ', %+$;)erformance appraisals are subject to a wide ariety of inaccuracies and

    biases referred to as Rrating errors7. These errors occur in the rater7s obserations, judgment, and

    information processing, and can seriously affect assessment results. The most common rating errors

    are leniency or seerity, central tendency, halo effect, primacy and recency effects, perceptual set,

    performance dimension behaior, spilloer effect, and status effect.

    5. S'+$; %H /'The best way to oercome the problems is to proide training to the

    raters.

    6. -% -')( %( The seen criteria for assessing performance are

    a$ ")+% The degree to which the process or result of carrying out an actiity approaches

    perfection in terms of their conforming to some ideal way of performing the actiity, or fulfilling

    the actiity7s intended purpose.

    b$ ")$%+%The amount produced, e+pressed in monetary terms, number of units, or number of

    completed actiity cycles.

    c$T++$

    The degree to which an actiity is completed or a result produced, at the earliest

    time desirable from the standpoints of both co?ordinating with the outputs of others and of

    ma+imizing the time aailable for other actiities.

    KLESS IMSR, HUBLI. Page 34

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    d$ C'% ,,*%+$The degree to which the use of the organization7s resources is ma+imized in

    the sense of getting the highest gain or reduction in loss from each unit or instance of use of a

    resource.

    e$ N( ,' )/++'$The degree to which a job performer can carry out a job function without

    either haing to request superisory assistance or requiring superisory interention to preent an

    aderse outcome.

    f$ I$%/'$ +/*% The degree to which a performer promotes feeling of self?esteem,

    goodwill and co?operation among co?workers and subordinates

    g$ C')$+% +*

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    PRERE"UISITES FOR SUCCESSFUL PERFORMANCE APPRAISAL:

    The essentials of an effectie performance system are as follows

    1? D'*)$%%+'$ means continuous noting and documenting the performance. >t also

    helps the ealuators to gie a proof and the basis of their ratings.

    2? S%$(( G' the standards set should be clear, easy to understand, achieable,

    motiating, time bound and measurable.

    3? P*%+* $( +/ ,'% The appraisal format should be simple, clear, fair and

    objectie. Long and complicated formats are time consuming, difficult to understand, and do

    not elicit much useful information.

    4? E)%+'$ %*-$+9) =n appropriate ealuation technique should be selectedN the

    appraisal system should be performance based and uniform. The criteria for ealuation should be

    based on obserable and measurable characteristics of the behaior of the employee.

    5?C')$+*%+'$ @ommunication is an indispensable part of the performance appraisal

    process. The desired behaior or the e+pected results should be communicated to the employees

    as well as the ealuators. @ommunication also plays an important role in the reiew or feedback

    meeting. 0pen communication system motiates the employees to actiely participate in the

    appraisal process.

    6? F(*@ The purpose of the feedback should be deelopmental rather than judgmental.

    To maintain its utility, timely feedback should be proided to the employees and the manner of

    giing feedback should be such that it should hae a motiating effect on the employees7 future

    performance.

    4. DATA ANALYSIS AND INTERPRETATION

    KLESS IMSR, HUBLI. Page 36

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    1. -+*- (/%$% (' ') ='@ ,'

    =nalysis

    The aboe pie chart depicts that out of the sureyed employees 1(2 belong to production,#(2

    belong to 34, %/2 belong to accounts.

    KLESS IMSR, HUBLI. Page 37

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    2. P,'$* //+ + $(( +$ %- ';$+:%+'$

    =nalysis

    The aboe pie chart shows that 5/2 of the employees stated that they need performance appraisal

    in organization,#/2 said they do not need.

    KLESS IMSR, HUBLI. Page 38

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    3. '= ,9)$% /,'$* //+ + %' ('$

    =nalysis

    The aboe chart depicts that #/2 stated performance appraisal to be done quarterly ,#(2 wanted it

    half yearly and 6(2 of the employees wanted performance appraisal to be done yearly.

    KLESS IMSR, HUBLI. Page 39

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    4. D' %- +( ', /,'$* //+ '%+% /'

    =nalysis

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    5. P,'$* //+ -/ ';$+:%+'$ +$ ,''=+$; =

    . R()* $%

    . R()* /' %)$'

    *. I/' /' ,,+*+$*

    (. M' /'()*%++%

    =nalysis

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    6. S-')( /,'$* //+ (

    . S,

    . S)/+'

    *. *'$)%$%

    (. *';)

    =nalysis

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    7. - (' %- *'/$ (' %- /,'$* //+

    . T' %- /'

    . . T' %+$+$; $( ', /'

    *. T' (*+( )/'$ / +

    (. (. ,' /''%+'$

    =nalysis

    KLESS IMSR, HUBLI. Page 43

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    =nalysis

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    1#. S-')( /''%+'$ /) ( '$

    . P,'$* (

    . T$) (

    =nalysis

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    12. S-')( %- ';$+:%+'$ - /% *'+%% %' += %- /,'$* //+

    a$ Ies

    b$ ;o

    =nalysis

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    5. FINDINGS

    0ut of the sureyed employees 1(2 belong to production, #(2 belong to 34, %/2 belong

    to accounts.

    5/2 of the employees stated that they need performance appraisal in organization, #/2 said

    they do not need.

    #/2 stated that performance appraisal to be done quarterly, #(2 wanted it half yearly and

    6(2 of the employees wanted performance appraisal to be done yearly.

    6(2 of the employees said performance appraisal motiates the employees and %(2 did not

    agree.

    %(2 of the employees said performance appraisal reduces absentees, %/2 of the employees

    said it reduces employee turnoer, %/2 of the employees said it improes efficiency and

    &(2 of the employees said it enhances productiity.

    '(2 of the employees told they wanted performance appraisal to be done by superior, &(2

    of the employees wanted self appraisal, (2 of the employees appraisal to be done by

    consultant and #(2 of the employees said appraisal should be done by all.

    '(2 of the employees said that performance appraisal is done to assess the employee, %(2

    of the employees said to assess the training needs and &/2 of the employees said appraisal

    is done for promotion.

    1(2 of the employees told that transparency of performance appraisal is ery important,

    %(2 said it7s important, (2 said its least important and een not important.

    &(2 told that salary increase motiates the most and remaining said incenties, promotions

    and recognition motiates.

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    6(2 of the employees said that promotion should be performance band remaining %(2 said

    it should be tenure based.

    8(2 of the employees said that organization should hae separate committee to reiew the

    performance appraisal.

    B. S);;%+'$

    )erformance appraisal should be yearly assessed.

    )erformance appraisal motiates employees so it should be fair and transparently done by

    the organization.

    )erformance appraisal should concentrate on promotion else it should be incentie based.

    )romotion must be purely based on performance of the employee

    0rganization should adopt &1/ degree performance appraisal or self appraisal.

    -eparate committee has to be formed for performance appraisal in the organization.

    KLESS IMSR, HUBLI. Page 49

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    CONCLUSION

    This study has helped me to understand the need for the performance

    appraisal system in the organization.=n effectie performance management systemcan help an employee reach their full potential and this is positie for both the

    employee and the organization. )erformance appraisalhelps in understanding the

    KLESS IMSR, HUBLI. Page 50

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    training and deelopment needs of the employees. >dentifying the gaps in desired and

    actual performance. Deciding future goals and course of action, )romotions,

    demotions and transfers, other purposes including job analysis and proiding superior

    support, assistance and counseling.

    6 .BIBLIOGRAPY

    BOOJS

    ssentials of 3uman 4esource Management and >ndustrial 4elations? ). -ubba 4ao

    3uman 4esource Management 9 =shwatappa

    )erformance appraisal 9T.G 4ao

    @ompany broachers

    KLESS IMSR, HUBLI. Page 51

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    @ompany prospectus

    EBSITES

    o ===.//+.$)@+-).*'

    o ===.$;$%%)(;)+(.*'

    7. "UESTIONNAIRE

    Dear -ir:Madam,

    =s a part of my academic requirement, > 4ashmi .M. -asnur, student of HL-7- >M-4, 3CL>

    studying in >G -M MC= conducting surey on R;eed for performance appraisal system in the

    organization7 .> will be obliged if you could spare few minutes in answering these questions. This

    data collected will be used for academic purpose only.

    KLESS IMSR, HUBLI. Page 52

    http://www.appraisals.naukrihub.com/http://www.managementstudyguide.com/http://www.appraisals.naukrihub.com/http://www.managementstudyguide.com/
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    Hindly fill in the Details

    ;ame

    Designation

    +perience

    #. Fhich department do you work forP

    a. )roduction b.34

    c. =ccounts d. Marketing

    %. )erformance appraisal is needed in the organizationP

    a. Ies b. no

    &. 3ow frequently performance appraisal is to be doneP

    a. *uarterly b. half yearly

    b. Iearly d. monthly

    '. Does the idea of performance appraisal motiate the employeesP

    a. Ies b. no

    (. )erformance appraisal helps organization in following ways

    a$ 4educes absentees

    b$ reduces employee turnoer

    c$ improes employee efficiency

    d$ More productiity

    =ny other please specify SSSSSSSSSSSS.

    1. -hould performance appraisal be assessed by

    KLESS IMSR, HUBLI. Page 53

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    a$ -elf

    b$ b. superior

    c$ c. consultant

    d$ d. colleague

    e$ e. =ll

    6. Fhy does the company do the )erformance appraisalP

    a$ To access the employee

    b$ To access training needs of employee

    c$ To decide upon pay rise

    d$ for promotion

    8. 3ow important is Transparency in the performance appraisal systemP

    a$ ery important

    b$ important

    c$ least important

    d$ not important

    5. ncenties

    c$ )romotion

    d$ 4ecognition

    =ny other please specify SSSSSSSSSSSSSS..

    #/. -hould )romotion be purely based onP

    a$ )erformance based

    b$ Tenure based

    KLESS IMSR, HUBLI. Page 54

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    ##. =ccording to you how should management motiate employeesP

    -uggest SSSSSSSSSSSSSS..

    #%. -hould the organization hae separate committee to reiew the performance appraisalP

    c$ Ies

    d$ ;o

    Thank you