Final Project Report

A STUDY ON PERFORMANCE APPRAISAL FOR
DIFFERENT LEVELS AT APEX AUTO LTD
CHAPTER -1
INTRODUCTION
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INDUSTRY PROFILE
The earthmoving and construction equipment industry has the potential to grow
fivefold from its current size of $2.3 billion to approximately $12-13 billion by 2015,
growing at 24% compound annual growth rate, according to ECE Vision 2015:
Scaling new heights in the Indian Earth Moving and Construction Equipment
Industry, a study conducted by McKinsey for CII and the Indian Earthmoving,
Construction Industry Association (IECIAL).
Construction equipment rental is one of the emerging growth areas of the Indian
construction equipment industry, besides exports, and refurbishing of used equipment
and services. The services segment in the construction equipment business is still
nascent and presents good opportunities for growth, says a study carried out by the
India Brand Equity Foundation (IBEF) and KPMG. Currently, equipment rentals
contribute just about 2% of the market. This is expected to grow to about 25% by
2010, the study says. In the US, the rental market is 65% of the total construction
equipment market.
Globally, the demand for construction machinery will jump 6% per year to $130
billion in 2011, says a new study from The Fredonia Group, the US-based industrial
market research firm. In 2006, the demand stood at $97.7 billion. The study says that
China, India, Mexico and Russia will register some of the largest sales increases, with
China alone accounting for 31% of all additional construction machinery demand
through 2011. The demand will be fuelled by healthy economic growth, ongoing
industrialization efforts, rising population and higher standards of living in a
developing world leading to increase in spending on construction. While India and
China are on an upswing, the US, however, could see a slump in its construction
equipment rental business. This is because of the fears of recession looming large
over the worlds largest economy and the ongoing trouble in its housing market. Less
construction of houses translates into lesser demand for cranes and dumper trucks
among other earthmoving machinery.
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The term bulldozer refers to earth-moving machinery fitted with some type of dozer
blade attachment at the front. Of course, this definition incorporates a huge array of
adaptations and subtypes, but they all fulfil pretty much the same basic function.
The vast majority of bulldozers are tracked, enabling them to crawl across extremely
tough terrain and push huge loads without loss of traction. Other types are fitted with
metal spiked wheels, for operating in the soft and unpredictable surface of a landfill
site.
For any business or organization, purchasing or leasing bulldozers is a huge outlay of
capital, so we want to make sure that we spend time making our decision. It is crucial
to understand exactly what we need, rather than falling for the sales pitch of a smooth
talking sales representative.
The construction equipment rental business is at a nascent stage and is a mere 2% of
the total equipment market. However, this is projected to grow to 25% by 2012,
thanks to the rising demand for machinery from the infrastructure sector.
Infrastructure is the backbone of any economy and India is no exception.
The countrys construction, housing and real estate sector has been growing at 10% in
the last five years, employing more than 30 million people. The sector, which covers
rural and urban infrastructure, roads, airports, sea-ports and commercial and
residential establishments, has got a major impetus in the last five years, thanks to a
host of government projects, such as Bharat Nirman, Pradhan Mantri Grameen Sadak
Yojana and airport modernization.
The Eleventh Five Year Plan (2007-12) envisages the total investment in the
infrastructure sector to touch 9% of GDP towards the end of the Plan period, from 5%
of GDP in 2006-07, according to the Economic Survey 2007-08. Based on this
projection, the Survey adds, the investment in physical infrastructure alone from
2007- 2012 is estimated to be $500 billion. Massive construction projects would
translate into multiple downstream opportunities for several other sectors, such as
cement, steel and construction equipment.
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Graph No .1 Machinery Demand
The Rental Business large construction projects required employment of heavy

equipment such as cranes, bulldozers, loaders and dumpers. Purchasing such
equipment only adds to the costs of construction companies, who are already battling
with the soaring commodity prices, particularly those of cement and steel. Many
companies thus look around for such equipment on lease. This has helped in the
growth of construction equipment banks, which provide machinery on rent and make
it easier for developers to contain project costs
Table no: 1.1
Major manufactures (Global)
Sl No
Company
1
Caterpillar
2
Komatsu
3
Volvo
4
Hitachi
5
6
7
Liebherr Intl
Ersumpersre
Terex
Country
US
Japan
Sweden
Japan
Switzerlan
d
US
US
Two companies dominate Indias equipment rental business Quippo, promoted by

SREI, an infrastructure finance company, and Saghvi Movers. However, there are
several smaller players in the unorganized sector. The launch of Quippo, the countrys
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largest infrastructure equipment bank, in 2002, coincided with the start of the Tenth
Five Year Plan period. The company made the most of the big opportunities in renting
equipment not only with the construction sector but also with power, mining, ports,
telecom, oil and gas. Besides, Quippo also provides value-added services such as
trained manpower and maintenance facilities. Sanghvi Movers is another major player
in the business with special focus on cranes. Operating with a fleet of 300 medium to
large cranes, the company boasts of an impressive line up of clients such as Suzlon,
Reliance, Enercon, BHEL and L&T.
Table no. 1.2

Major manufacture(Indian)
1
Bharat Earth Movers
2
L&T Case
3
L&T Komatsu
4
Ingersoll-Rand India
5
Tractors India
6
Telco Construction Equipment
7
Escorts Construction Equipment
8
Action Construction Equipment
FABRICATION
When used as an industrial term, applies to the building of machines, structures and
other equipment, by cutting, shaping and assembling components made from raw
materials. Small businesses that specialize in metal are called fab shops.
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Steel fabrication shops and machine shops have overlapping capabilities, but
fabrication shops generally concentrate on the metal preparation, welding and
assembly aspect while the machine shop is more concerned with the machining of
parts.
METAL FABRICATION
Metal fabrication is a value added process that involves the construction of machines
and structures from various raw materials. A fab shop will bid on a job, usually based
on the engineering drawings, and if awarded the contract will build the product.
Fabrication shops are employed by contractors, OEM's (Original Equipment
Manufacturers) and VAR's (Value-added Reseller), the typical projects include; loose
parts, structural frames for buildings and heavy equipment, and hand railings and
stairs for buildings.
1. ENGINEERING
The fabricator may employ or contract out steel detailers to prepare shop drawings, if
not provided by the customer, which the fabricating shop will use for manufacturing.
Manufacturing engineers will program CNC machines as needed.
2. RAW MATERIALS
Standard raw materials used by metal fabricators are;
Plate Metal
Formed And Expanded Metal

a.
b.
c.
d.
Tube stock, CDSM

Square stock
Sectional metals (I beams, W beams, C-channel...)
Welding wire
Hardware
Castings
Fittings
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3. CUTTING AND BURNING
The raw material has to be cut to size. This is done with a variety of tools.
The most common way to cut material is by Shearing (metalworking);
Special band saws designed for cutting metal have hardened blades and a feed
mechanism for even cutting. Abrasive cut-off saws, also known as chop saws, are
similar to miter saws but with a steel cutting abrasive disk. Cutting torches can cut
very large sections of steel with little effort.
Burn tables are CNC cutting torches, usually natural gas powered. Plasma and laser
cutting tables, and Water jet cutters, are also common. Plate steel is loaded on a table
and the parts are cut out as programmed. The support table is made of a grid of bars
that can be replaced. Some very expensive burn tables also include CNC punch
capability, with a carousel of different punches and taps. Fabrication of structural steel
by plasma and laser cutting introduces robots to move the cutting head in three
dimensions around the material to be cut.
4. FORMING
Hydraulic brake presses with v-dies are the most common Method of forming metal.
The cut plate is placed in the press and a v-shaped die is pressed a predetermined
distance to bend the plate to the desired angle. Wing brakes and hand powered brakes
are sometimes used.
Tube bending machines have specially shaped dies and mandrels to bend tubular
sections without kinking them.
Rolling machines are used to form plate steel into a round section.
English Wheel or Wheeling Machines are used to form complex double curvature
shapes using sheet metal.
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5. MACHINING
Fab shops will generally have a limited machining capability including; metal lathes,
mills, magnetic based drills along with other portable metal working tools.
6. WELDING
Welding is the main focus of steel fabrication. The formed and machined parts will be
assembled and tack welded into place then re-checked for accuracy. A fixture may be
used to locate parts for welding if multiple weldments have been ordered.
The welder then completes welding per the engineering drawings, if welding is
detailed or per his own judgment if no welding details are provided.
Special precautions may be needed to prevent warping of the weldment due to heat.
These may include re-designing the weldment to use less weld, welding in a staggered
fashion, using a stout fixture, covering the weldment in sand during cooling, and
straightening operations after welding.
Straightening of warped steel weldments is done with an Oxy-Acetylene torch and is
somewhat of an art. Heat is selectively applied to the steel in a slow, linear sweep. The
steel will have a net contraction, upon cooling, in the direction of the sweep. A highly
skilled welder can remove significant warpage using this technique.
Steel weldments are occasionally annealed in a low temperature oven to relieve
residual stresses.
7. FINAL ASSEMBLY
After the weldment has cooled it is generally sand blasted, primed and painted. Any
additional manufacturing specified by the customer is then completed. The finished
product is then inspected and shipped.
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CHAPTER -2
a.ORGANISATION STUDY
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COMPANY PROFILE
Apex Auto Ltd Auto Limited is a public limited company with a diverse set of
shareholders, both Indian and Foreign. The company was promoted by Mr. Atul
Taunk in 1995 with a modest capital outlay of Rs. 34,200,000 and Apex Auto Ltd
today has a capital outlay of Rs. 120,000,000. This has been achieved by producing
thousands of dynamically stressed machined components for the construction
equipment industry.
Apex Auto Ltd has been a supplier of finished fabricated and machined assemblies
and components since 1996. They are presently manufacturing components for
excavators,back hoe loaders,cranes,compactors,transit mixers, underground drilling,
crushing and screening equipments for the domestic and international market.The
raison desire of Apex Auto Ltd is that the emerging scenario in post liberalized India
indicated that the nation was poised to go in for massive infrastructure building,
roads, super highways, ports, power projects, and so on. This would put immense
pressure on manufacturers of earth-moving equipment. Apex Auto Ltd eases the load
on them by supporting the industry with precision engineered major assemblies and
sub-assemblies and that can go directly into their equipment, such as revolving
frames, main frames, booms, arms, dozers, buckets, and so on. As a case in point,
we're proud to have been entrusted with the single share of business for all major
fabrications that go into the making of TATA Hitachi's top selling excavators, the EX60. Over the last 5 years, we have fabricated more than 10,000 components of this
particular model alone.
Their
infrastructural facilities have been meticulously planned out with an eye
towards satisfying the exacting standards of world class players in the earth moving
industry.
Jamshedpur:
Apex Auto Ltd Auto was initially established in Jamshedpur in 1996.Jamshedpur is a
city located in the state of Jharkhand in India, founded by the late Jamshedji
Nusserwanji Tata. Located in the East Singhbhum district of Jharkhand on the Chota
Nagpur plateau, Jamshedpur is surrounded by the beautiful Dalma Hills. The rivers
Subarnarekha and Kharkai border the North & West of the city, respectively.
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Jamshedpur was a planned community at the site of the first modern iron and steel
making plant in India (also in Asia), by Tata Steel.
Dharwad
Apex Auto Ltd Auto was established in Dharwad in 1999 as part of the long term
expansion plans to cater to the needs of clients in Western and Southern parts of India.
Dharwad, also known as Dharwar, is a city located in the state of Karnataka in India.
Dharwad is located 425km northwest of Bangalore, on the main highway between
Pune and Bangalore in Karnataka.
Training
As Protagoras has so succinctly put it, Man is the measure of all things. To that
end, Apex Auto Ltd invests heavily in training its team members in all aspects to
facilitate value addition to every area of operation. Many of our staff has decades of
experience at Tata Motors (formerly Telco).
All moving with the same trust and camaraderie towards sustaining the incredible
growth charted by the company in its first few years, both in Jamshedpur and at
Dharwad.
Design
Apex Auto Ltd provides extensive training on all engineering design aspects to its
engineers and draftsmen to meet the challenging demands of clients. Our design team
supports the latest innovations in the field of earth moving equipments and helps our
clients meet their objectives.
Management
Supervisors and managers receive trainings on project management, resource
management, soft skills; labour relations which help them improve collaboration
across units and ensure a positive a vibrant working atmosphere.
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Apex Auto Ltd exports
Automobiles Products - Manufacturer, Export / Import, Proprietorship Firm since
APEX AUTO LTD is a leading organization that deals into the manufacturing of a
variety of automobile components. Apex Auto Ltd is committed to consistent and total
quality through highly innovative, cost effective and creative policies. Our products
pass through stringent quality tests at every stage of the manufacturing. We are a team
of skilled technologist and engineers that is committed to offer you the best of
products.
They are backed by state-of-the-art manufacturing plant and machinery with latest
testing equipment that makes our products totally flawless. Our in house R & D
department constantly innovated and develops products that enable us to match
international standards. The premium quality of our products is recognized in the
developed and demanding markets of Europe, Middle East, South East Asia, Africa,
Malaysia, Singapore, Indonesia and Philippines.
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VISION
To be recognized as a premier QUALITY manufacturer and supplier of fabricated
components, embodying thus the spirit of commitment and humanity.
To establish and follow standards of excellence in every activity and operation in their
organization.
To identify and meet customers needs and expectations to achieve maximum
customer acceptance.
To ensure continual up gradation in the use of technology, process, systems and
practices.
To build Human Resource capability and to develop a single motivated team.
To be a global leader in steel fabrication with a turnover of over US$ 200 Million by
2018.
MISSION
As per customer schedule requirement fulfil it, deliver on time, every time.
An eye on product quality and integrity.
Highest productivity, thereby offering a cost advantage to all our clients.
Why Apex Auto Ltd?

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Aristotle - Greek inventor of the Science of Logic - recommends studying the theory
of The 4 becauses before making your choice Why Apex Auto Ltd for your
Machined fabrication?
The 1st because deals with what is it made of?
Apex Auto Ltd uses only prime quality steel sheets and plates procured from
leading players in the industry - Tata Steel and SAIL.
The 2nd because deals with how is it made?
Apex Auto Ltd has state of art Material Processing facilities including Indias
largest laser cutting machine. And excellent Production Engineering systems set up by
a highly experienced and technically qualified team of engineers.
The 3rd because deals with what is made?
Based on our customer's drawings and design, Apex Auto Ltd manufactures
dynamically stressed machined fabrications conforming to all the specifications laid
down by the customer.
The 4th because deals with why is it made thus?
Apex Auto Ltd follows the first three precepts so that the end customer gets a
world-class product which will withstand the ultimate test of time.
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COMPANY PROFILE
General Information:
Name of the organization
Established Year
Registered Office
APEX AUTO LTD AUTO LIMITED

1995
Natraj Mansion Bistapur Jamshedpur -
Office / Works
831001
DHARWAD UNIT-I :
KIADB, PLOT NO. 195 to 198 & 213 to
216, 225-226
BELUR INDUSTRIAL AREA,
DHARWAD 580011,INDIA
Type of Industry
Manufacturers of earth-moving equipments.
Constitution
Public Limited Company
Total number of employees

Total Land acquired
Investment
350
35 Acers
342 Lakhs
Branches
Products
4
Main Frame, Track Frame, Dozer blade,
Loader bucket, loose parts , Arm stab, Boom
Motto
Website
Board of directors
If you can imagine it, we can fabricate it.

www.Apex Auto Ltdautousa.com
Mr. Atul Taunk Managing Director
Mrs. Anahita A. Taunk
Mr. Meher H.Mehta
Mr. Vipul Kumar Amin
Mr. Barkat Ali Farishta
Mr. Gopal N.Bhatia
LOCATION OF APEX AUTO LTD AUTO LTD

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DHARWAD UNIT 1
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DHARWAD UNIT 2
JAMSHEDPUR UNIT
Quality Policy: (ISO 9001:2008)

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They shall endeavour to produce engineering fabrication and earth moving products
matching world class standards to win maximum customer acceptance.
They shall achieve our aspiration through use of continually up graded process and
technology, optimum utilization of resources and contribution by everyone as a single
motivated team.
Environment Policy: (ISO 14001:2004)

They are committed to the protection and conservation of environment.
Adhering to all applicable environmental legislation and regulation.

Adopting pollution prevention technique in manufacturing.
Conserving all natural resources and energy.
Achieving continual improvement in environmental performance.
To provide clean working environment to our employees and interested
parties.
Towards this, they propagate their environment policy and commitment to continual
improvement to all the employees, suppliers, sub contractors and interested parties.
SUPPORT FROM APEX AUTO LTD AUTO LTD

Pre Sales:
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Their client management team hand-holds you throughout the planning and design
phase to ensure that not only we build the equipment in a right way, we also build the
right equipment to meet your long term needs.
Post Sales:
Their operations team works with your team members to ensure the design is done as
per your specifications. We also provide regular updates to relevant stakeholders
about the progress of their work over time.
End of a sale is merely the beginning of our relationship. We provide installation and
configuration support on-site. Our warranty covers parts and labor during the
specified period to ensure you a hassle-free experience. We also service the parts and
equipment as per maintenance contracts, which can be worked out anytime during the
life of the equipment.
Parts:
Our inventory is stocked with the most commonly used parts to ensure availability of
critical spares during your operations. Most of their non-wearing parts also carry
additional warranty that covers parts and labor to ensure your satisfaction.
In the event that you need a special part to be fabricated on a priority basis, their
service team will work out a mutually convenient schedule to ensure your operations
are run efficiently.
Warehousing:
Many of their customers require storage facilities for custom parts and equipment
which allows them to reduce their overheads in these areas. Their plant locations are
uniquely geared to provide the most cost-efficient and secure warehousing services to
their esteemed clients.
Table no: 1.3

Esteemed Customers, Suppliers and Competitors:
CUSTOMERS
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SUPPLIERS
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COMPETITORS

Tata Hitachi, India

Kodelco, India
ITM, Germany
Inter-Tractor, USA
Atlas Coco, India
JSW Steel
SAIL
SONA Steel
MAYUR Steel
JKAY & MARUTI
RSB
Model Project
TMI
INDIA
Tata steel , India

Tata john deer, India
Cobalco
Volvo
Larsen
&
Toubro,
India
VALUED CUSTOMERS OF APEX AUTO LTD AUTO LTD
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Achievements and Awards:

1. ISO 9008 company, Quality awards from Telcon, One of which is maintaining
BES quality.
2. Award for export excellence special contribution as medium enterprises.
3. Award for sustain quality performance 2007-08.
4. Award for consistence on-time material supply 2007-08.
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5. For safety in manufacturing process awards (less accident in manufacturing
process) for continuous 3 years form Telco construction equipment limited.
6. For MINIMUM REJECTION award form Telco construction equipment limited.
Certificates:
Telcon:We are proud to be the primary supplier of fabrications that go into the
making of Tata Hitachi's top selling excavators. Over the past ten years, we have
fabricated over 20,000 components. Apex Auto Ltd has been thus certified by
TELCON.
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Product Profile:
Apex Auto Ltd manufactures mainly the following components or Equipments.
Track Frame:
Track Frame is a metallic fabricated & machined frame on which track is mounted for
movement on the ground, on the top of this components main frame in mounted. It
comprises with left & right side frame assembled with lower frame.
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Main frame:
It is an important component of excavators body companies with enters frame, tail
frame various brackets, battery box etc. In fact it is a revolving frame on which it is
the engine, cabin canopy oil & fuel tanks, counter weights, boom etc. It revolves 360
to provide more flexibility in the operations of excavators.
Arm:
It is connecting fabrication between the boom &the bucket/tool for concerned
operations movement of arm is affected
through hydraulic cylinder molted on the
boom.
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Dozer Blades:
The dozer blade is a heavy metal plate, installed on the front of the vehicle, with the
aim of pushing things, handling rough obstacles and shoving sand, soil and debris.
Loader Bucket:
The loader bucket is a wide square titling bucket that can be mounted on the end of
movable arms to lift and load material.
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Backhoe Main Frame:

A backhoe is a piece of excavating equipments consisting of a digging bucket on the
end of articulated arm, usually powered by hydraulics. The mainframe is designed to
support and to provide a point of attachment for the main hydraulic of the backhoe.
Boom Arm:
Boom arm is a metallic projecting arm used in cranes and excavators.
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Counter weight:
A counter weight is a heavy mass used in cranes and excavators, mechanically linked
in opposition to a load which is to be raised and lowered, with the intent of reducing
the amount of work which must be done to effect the raising and lowering.
Track 2520 frame 1
Track 2520 frame 2
Components for a top selling 90 ton crawler crane:
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TECHNOLOGY
Material Processing:
It includes facilities like:
Cutting facilities: laser,oxy and plasma cutting machines
Processing
facilities:shearing,straightening,rolling,and
bending machines.
Trumpf Laser Cutting:
Precision laser cutting reduces the possibility of contamination owing to lack of

physical contact and increases the precision of the overall cut since there is no wear
on the laser. There is also a reduced chance of warping the material that is being cut as
laser systems have a small heat affected zone. AAL uses Laser Cutting machines from
Trumpf, Germany to meet the exacting standards expected from our clients.
Robotic Welding:
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Robotic Welding is the use of mechanized programmable tools (Robots), which

completely automate a welding process by both performing the weld and handling the
part. Robotic Welding is commonly used for resistance spot Welding and arc welding
in high production applications, such as the automotive industry.
SHW Machining Facilities:
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We have state of the art machining facilities with a wide range to deliver complex
jobs. We have machining centres from SHW, TOS & Doosan along with
various CNC and conventional radial drilling, boring and milling machines.
Skilled Manual Welding:
Where machines fear to tread, human resilience takes over. While building custom
parts, there are certain welds that are too difficult or too expensive to be managed by
laser or robotics- this need to be handled by manual welding Methods instead. Team
members are experts in manual welding techniques, like shielded metal arc welding,
one of the most popular welding Methods, as well as semi-automatic and automatic
processes such as gas metal arc welding, sub merged welding, flux-cored arc welding
and electros lag welding.
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Assembly and Finishing:
All assembling of parts happens in the work shop aided by cranes, fork lift, jacks,
tackles and robots. In specific cases depending on client needs, company also
provides assembling facility on-site. All finished work products leaving the factory
premises are quality checked and marked for proper documentation.
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ORGANIZATION CHART
Managing Director
GM, Operations
AGM- Operations
AGMFinan
Asst
MgrFinance
AGMAdmin
Asst
MgrHR/Adm
MgrPurcha
Sr.ExePurchase
Mgr QA
MgrMntPrep
Mgr
Productn
.
Eng
maintn.
AM SCM
Sr. ExeStores
Sr. Eng Fab
EngMainten
ance
Jr.Exe
-SCM
Exe Stores
Sr.ExeFin &
Acc
Asst
MgrFinance
Asst.
Mgr-QA
Exe Fin
& Acc
Asst
MgrFinance
Sr. Eng QA
Sr. Eng Fab
Jr. EngMaint
Exe Stores
Sr. Eng QA
Eng Fab
EngMaint
Jr.Exe Stores
Jr. Eng QA
Jr. Eng Fab
Jr.Eng QA
Jr.Exe Stores
Jr.Eng QA
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DEPARTMENTAL STUDY
Apex Auto Ltd Auto Ltd has Following Departments
1)
2)
3)
4)
5)
6)
7)
8)
Purchase Department.
Stores Department.
Production Department.
Maintenance Department.
Finance Department.
Human resources Department.
Supply Chain Management Department.
Quality Assurance Department.
Purchase Department:
Purchase department is concerned with the planning and providing materials and
services conforming to the specified requirements and store and preserve materials till
they are issued for use. The main function is to procure right items for right source at
a right price with right quality.
The purchase department consists of three persons. One is the purchase manager, the
other two persons work under him. The production department sends the requisition
of materials to the Stores department which in-turn sends in a document called indent.
After receiving the indent the purchase manager has to check (scrutinize) the indent
by verification of quality, deliver date and that has to be approved from the Telecon.
Purchase Manager must know about the vendor (address, his background). Raw
materials are purchased according to the requirements of customers.
Following points are considered during purchase in the purchase dept. They purchase
raw material from Jamshedpur head office, SAIL (steel authorities of India ltd).
1. Receipt of Indent.
2. Verification of Indent.
3. Product verification.
4. Supply search.
5. Assessment
6. Selection of supplier.
7. Receipt of Quotation.
8. Negotiation.
9. Release of purchase order.
10. Material follow up.
Major Raw Materials Purchased:

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1)
2)
3)
4)
5)
HR plates
Botouts
Consumables
Fastners
Electrical items
Process Flow
Drawings
Send the specification to the suppliers

thethspssssssfspecification
Quotation
Cost.
Payments terms.
Delivery terms.
Techno commercial
tax
Cost.
Quantity.
Payment.
Negotiation
Purchase order
Cost.
Quality
Delivery time.
Raise an invoice
Stores Department:
Many of our customers require storage facilities for custom parts and equipment
which allows them to reduce their overheads in these areas. Our plant locations are
uniquely geared to provide the most cost-efficient and secure warehousing services to
our esteemed clients.
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The ABC analysis technique of inventory management is being adopted at the
organization. Inventory is maintained on material consumption value.
They follow the FIFO (first in first out) Method. The FIFO Method of valuation of
inventory is based on the assumption that the inventory is consumed in
chronological order, that is, those received first are issued/consumed first and
value fixed accordingly. The merit of FIFO Method is that the physical flow of
materials matches the flow of cost.
Depends upon the material cost, quality of the product varies.
Inventory under ABC Analysis Is Maintained Under the Following

Ratio:
1. A-10% [High Consumption Value Material]
2. B-15% [Moderate consumption Value Material]
3. C-75% [Low Consumption Value Material]
Daily average material consumption in the organization is about 5-10 lakes. Each
material stored in stores is coded under alpha-numeric coding. Material, big or small;
costly or cheap, each one is given a specific code for easy identification and access.
Basic Functions of a Stores Department:

If there is any need of raw-materials the store department work is to send the P.R
(purchase requisition) or it may be called as indent.
Then the purchase department sends the purchase order to the suppliers.
Inward:
When the materials are received the in-charge of the purchase department will
verify the materials which they have received from their suppliers.
According to the order placed by the purchase department they check the quality
and quantity of the received material.
The material which takes long time for inspection will be kept under their custody
under a tag till it is inspected, latter if the inspected material is according to the
placed order then the material will be accepted or it will be rejected.
Outward:
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Issues of material to concerned department.
Sales to outside party.
Rejected material is sent back to the supplier.
If the stored material is destroyed, then it is sold as scrap.
Document Maintained:
1. Goods received inward note (GRN)
2. Delivery note
GRN Consists of
1.
2.
3.
Name of the supplier,

Chillan number,
Quality of material.
Major Suppliers
JSW
Tata steel
Local dealers
Production Department:
The production department of the APEX AUTO LTD plant is under the control of
the General Manager. The production schedule is prepared manually on month basis.
The production department is divided into various separate departments. Each
department consists of H.O.D & his supporting staff. The following are the various
sections of the production department
Material handling.
Material preparation.
Fabrication.
Shipping.
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Material handling:
Apex Auto Ltd has state of art Material Processing facilities including Indias largest
laser cutting machine. Our Production Engineering systems are set up by a highly
experienced and technically qualified team of engineers.
Material preparation:
In this process the raw-materials are metal sheets, which are brought to cut the sheets
into different shapes and size. To make the unfinished sheet into components. The
laser machines are used to cut the more thickness of sheets, and some of the other
machines are also used which helps to convert into parts. So that the parts can be
assemble according to the products specification.
Fabrication:
Based on our customer's drawings and design, Apex Auto Ltd manufactures
dynamically stressed machined fabrications conforming to all the specifications laid
down by the customer.
Shipping:
The finished products are inspected and shipped to customer specified destination. For
the export market, Apex Auto Ltd Auto also takes care of container handling and
customs clearance related activities on behalf of the customer.
Technology and Expertise:

Precision laser cutting.
Robotic Welding.
Skilled manual Welding.
Assembly & Finishing.
Precision Laser Cutting:

Precision laser cutting reduces the possibility of contamination owing to lack of
physical contact and increases the precision of the overall cut since there is no wear
on the laser. There is also a reduced chance of warping the material that is being cut as
laser systems have a small heat affected zone. Apex Auto Ltd Auto uses laser cutting
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machines from Trumpf, Germany to meet the exacting standards expected from our
clients.
The two laser cutting machines are:

2-D Laser cutting machine. (To cut into different shapes).
3-D Laser machine. (This machine helps to for moulding the sheets).
Robotic Welding:
Robotic welding is the use of mechanized programmable tools (robots), which
completely automate a welding process by both performing the weld and handling the
part. Robotic welding is commonly used for resistance spot welding and arc welding
in high production applications, such as the automotive industry.
Skilled Manual Welding:

Where machines fear to tread, human resilience takes over. While building custom
parts, there are certain welds that are too difficult or too expensive to be managed by
laser or robot this need to be handled by manual welding Methods instead. Our team
members are experts in manual welding techniques, like shielded metal arc welding,
one of the most popular welding Methods, as well as semi-automatic and automatic
processes such as gas metal arc welding, submerged arc welding, flux-cored arc
welding and electro slag welding.
Assembly & Finishing:

All assembling of parts runs in workshops aided by cranes and robots. In specific
cases depending on client needs, we also provide assembling facility on-site. All
finished work products leaving the factory premises are quality checked and marked
for proper documentation.
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Maintenance Department:
The responsibility of this department is to look after the various workshops,
machines & tools used in those departments. It is advantageous that the worker
possess many abilities, from machine repair to landscaping, since maintenance covers
so many areas. Maintenance workers may only be responsible for one building or may
work in many buildings with a team. The maintenance worker must maintain good
health, since he may be working in extremely uncomfortable situations like severely
hot or cold weather or in small spaces.
Plant (Head)
Senior Supervisor
Electrician
Supervisor
Maintenance Objectives:
To reduce breakdown percentage through effective & planned maintenance
1. Lawn Care
The maintenance worker provides routine care of lawn and gardens to Maintain and
improve landscapes. He applies pesticides, fertilizer, cuts grass and prunes trees to
make the landscape more appealing. In the spring, maintenance workers also plant
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flowers and replace bushes and trees. Raking fall leaves and shovelling winter snow
are some more specific seasonal-related tasks.
2. Making Repairs
Making preventative repairs and repairing broken equipment and fixtures is an
ongoing duty of the maintenance worker. The maintenance worker is the first person
called when something breaks or malfunctions. It is up to her to diagnose the problem
and determine what will be needed for the repair.
The maintenance worker may require plumbing skills to repair and replace
Pipes when there is a leaky or broken pipe. Newer buildings are equipped with
computer controlled stations where the worker can diagnose some problems with the
quick touch of a button.
3. Cleaning
Heavy-duty cleaning like carpet cleaning and power washing building exteriors is a
job that must be done a few times a year to maintain durability and appearance.
Depending on the job location, some maintenance workers perform lighter cleaning
duties, such as vacuuming and light dusting.
4. Maintaining Inventory
The maintenance worker keeps track of equipment, cleaning supplies and tools. When
supplies run low, he reports the order to the needed person. He may also be
responsible for keeping bathrooms and other areas of buildings stocked with towels or
soap.
Main Functions:
1. Maintenance of list of machines.
2. Break down control of machines.
3. Preventive plans for next year.
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Human Resources Department:

The Human Resources Department plays an important role in the organization. This
department has acquired more importance in recent times. This department looks after
the various activities concerned with recruiting, selection, training, appraisal, labour
welfare, transfer, termination etc. This department takes care of all the activities
related to labourers and employee satisfaction. The success or failure of any
organization depends upon how best the organization utilities its human resources.
Apex Auto Ltd Auto Ltd selects is employees according to the needs of the job
and qualification. Company is providing all necessary needs of the employees like
TA, DA, Medical allowances, canteen facility etc.
Managing Director
l
HR Manager
Supervisor
Functions HR Departments:
1. Man power planning.
2. Recruitment and selection.
3. Identity training need for employee.
4. Performance Appraisal.
5. Salary and wage administration.
6. Welfare measures.
7. Payment of Gratuity.
8. Increment/Incentives.
9. Preparation of attendance sheet.
1. Man Power Planning:

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The main activity of HRD department is the planning of manpower. Depending on
the production of products, manpower planning is done by HRD. Presently, the
plant has 340 Employees including staff. They have a basic salary of Rs175/- per
day. It is the joint responsibility of HODs and the HRD department to prepare
manpower plan in conformity with production norms. This shall be approved by
the senior director in- charge of the unit.
2. Recruitment and Selection:

Recruitment is the process of searching for prospective employees and
stimulating and encouraging them to apply for jobs in the organization. There are
two types of recruitment process; internal recruitment and external recruitment.
Internal sources of recruitment include promotions, transfer & redeployment of
existing employees. External sources include advertisements, employment
exchange, newspapers, reference etc.
3. Identify Training Needs for Employees:

The HRD identifies training needs for employees by receiving response from the
main supervisor of every department of production and based on this certain steps
are taken by the HRD.
4. Performance Appraisal System:

The process is done to know the effectiveness of employee on the job and
awareness towards his strength and weakness in respect of role in the
organization. The objective is to improve relationship between appraisers and
appraise through performance dialogue. At Apex Auto Ltd plant, Performance
Appraisal is done on a yearly basis for permanent employees only.
5. Salary and Wage Administration:

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Salary of the employees are given on 7th of the every month & overtime
incentive is given on the salary is divided into three categories namely basic is Rs
135, production is Rs 25 and for attendance is Rs 15. 22 nd of every month. For
contract labourers Rs 175/- per day is given.
Basic + Production + Attendance = 175.
6. Welfare Measures:
Restrooms
Drinking water
Medical facility
Leave facility.
7. Payment of Gratuity:
As regards gratuity, for every 1 year of service, 15 days average basic pay would
be paid to workers provided they have rendered service of not less than 5 years.
Gratuity = (BS + DA * Years of Service * Days) / 15.
8. Attendance Sheet:
Daily attendance sheet is prepared to know the attendance of the employees to
check rates of absenteeism & to implement counter measures to curb such
occurrences.
9. Motivation Benefits:
Monthly attendance incentives.

Yearly attendance incentives.
Monthly seven star award.
Completion of every five year get service benefit award.
Celebrating employee birthday.
Annually get together for employees.
Annually picnic for staff and employees.
Supply Chain Management Department:

Supply chain management department is the heart of the organization which will take
care of customers demand till the dispatch in time. And it will go throw its operations
by combining all the departments to meet the demand smoothly and reasonably.
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Functions of Supply Chain Management Department:
1. Look after the operations of the organization.
2. Customer interaction.
3. Procurements.
4. Directions to operations department.
5. Look after Production.
6. Delivery in time.
7. Maintaining the suppliers.
1. Quality Department
In a quality department main components are
a. Quality control
b. Quality assurance
a. Quality control
Quality control, or QC for short, is a process by which entities review the quality of
all factors involved in production. Quality Control program include assuring that all
parties understand what is to be constructed, and the standards that apply. All workers
and inspectors should be adequately qualified to perform the required work, and
should have written procedures, approved by the engineer, for the work that is to be
performed.
b. Quality assurance
Quality assurance department is most effective department to attain the customer
required quality products and for the maintenance of long term relationship with the
customers.
SWOT ANALYSIS OF APEX AUTO LTD AUTO LIMITED
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SWOT analysis provides information that is helpful in matching the firms resources
and capability with the competitive environment in which it operates. Following are
the SWOT analysis of the company:
Strengths:
1. Apex Auto Ltd auto ltd has Indias largest LASER CUTTING machine.
2. Apex Auto Ltd auto ltd is having excellent production engineering systems.
3. Being a new concern set separately from the rest of the Jamshedpur crowd, the
company enjoys a fresh image of commitment and timely delivery of quality
goods as against the reverse fame maintained by its competitors.
4. A well connected material procurement system with the developed vendors helps
void any kind of delay in material procurement. One of the major strength of Apex
Auto Ltd auto limited is that we stock heavy quantity of regular material and
thereby get better values and conditions from the vendors.
5. The main strength of Apex Auto Ltd auto limited comes with the level of clarity
and simplicity in terms of setting goals and targets and concentration to achieve
them.
6. The strength of Apex Auto Ltd Auto Ltd. is their own product.
7. The company follows its own ethics.
8.
Better management system highly skilled and competent human resource
Weakness:
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1. Lack of research and development initiatives.
2. Inadequate supply of raw materials.
3. Government interference particularly in fixing the Price.
Opportunities:
1. A long term future opportunity is the fact that China is setting up the largest steel
plant in the world which would solve the problem of shortage of steel and bring
out a level of stability in the industry.
2. There is great opportunity also as one of the competitors m/s Model Projects is
not in a position of manufacturing the buckets and supply them in time to
TELCON. Also another competitor for counterweights is not able to fulfill
monthly schedule commitments to TELCON due to material shortage. This is one
of the greatest opportunities for Apex Auto Ltd auto limited also the growth of the
industry as a whole is a major opportunity due to the high level of increasing
demand for the final product.
3. Inability of Tatanagar Metal Industry to supply material (counterweights) within
schedule and also after it, causing extra dispatch from to Apex Auto Ltd auto
limited every month over schedule is another major opportunity to cash in on.
5. There is no sales tax.
Threats:
1. Increasing competition for similar kind of products. A direct threat to the firm as
also seen clearly is that of well established competition. Foul play and power
imposing by pre-existing competitors is a major threat which has to be carefully
studied and avoided or met face on.
2. Scarcity of domestic resources.
3. Government interferences.
4.
Changing global scenario/Market fluctuation
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Corporate Social Responsibilities (CSR) Activities:
o Apex Auto Ltd Auto Ltd formed employee welfare trust to help needed people
or outside the employees.
o Special chairs provided to the physical handicapped childrens.
o In Kotur Govt. School provided Indian maps, slogans and conducted painting
o
o
o
o
activity to the educated childrens.

Provided blankets and food glossary to the orphan couples.
Provide tube lights and ceiling fans to the German hospital, Dharwad.
Made blood donor group in organization.
Scholarship to the employee children to motivate them and help them to the
education purpose.
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CHAPTER-2
B.THEORETICAL
BACKGROUND
THEORETICAL BACKGROUND
Definition of HRD
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Udai Pareek and TV Rao 1992 explain HRD is primarily concerned with
developing employees through training, feedback and counseling by the seniors
officers and other developmental efforts.
Functions of HRD
Theoretical approach towards Performance Appraisal

Meaning of Performance Appraisal :
Performance Appraisal is defined as any procedure that involves
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1. Setting work standards
2. Assessing the employees actual performance relative to those standards
3. Providing feedback to the employee with aim of motivating him or her to eliminate
performance deficiencies or to continue to perform above par.
Or
Evaluating an employees current or past performance relative to his or her
performance standards.
In every business organization, the performance of the employees is
important in achieving organizational goals. The success of every business
organization can therefore be attributed to Performance Appraisal. Performance
Appraisal is one of the basic tools that make workers to be very effective and active at
work. A critical look out on this may bring about the need for motivation, allowances,
development, training and good human relationship in an organization.
Performance Appraisal is defined as a structural formal interview between
subordinate and supervisor, that usually takes the form of periodic interview (annually
or semi-annually), in which the work performance of the subordinate is examined and
discussed, with the view of identifying the weaknesses as strengths as well as
opportunities for improvement and development .The output of every organization
depends on how well and how much the performance of the employee is appraised
and evaluated. Productivity can therefore be defined as quality or volume of the
major product or services that an organization provides. In short, productivity is what
comes out of production. Managers of every business organization are charged with
the responsibility to motivate their employees to achieve organizational goals.
Without a good product to sell, problems in an organization are bound to
rise.Performance Appraisal should be linked to attractive incentive to employees,
enabling workers to demonstrate higher productivity.
Most organizations in the competitive market fail since their workers perform below
standard for they are not encouraged to work harder. Managers and employees are the
life blood of every business organization. If management does not invest much into
the welfare of their workers, problems are bound to rise leading to industrial strike
actions, low commitment to work, low morale and low productivity of goods and
services. Attractive appraisal systems are established by some business organizations
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to help motivate their employees to strike hard to be recognized and rewarded. Once
employees are motivated, their performance reflects on productivity. Employees strive
hard by pooling together skills, knowledge and efforts to achieve maximum output.
Hence the essence of this paper is to find out the part played by Performance
Appraisal.
Need of Performance Appraisal:It is a process that provides an analysis of a persons overall capabilities and potential
allowing informed decision to be made for particular purpose.
1. Clarifying expectations and reducing ambiguity about performance.
When an employees performance is appraised, he is made clear regarding his key
performance areas more lucidly.
2. Improving individual performance
The clarity an individual obtains from his appraisal will help him identify the areas of
strengths and weaknesses, which provides him an opportunity to work on his
shortcomings.
3. Determination of rewards
The identification of gaps between actual and expected performance helps
organization in fixing rewards and incentives.
4. Improving motivation and morale
The provision of rewards and incentives and the clarity of work expectation will
facilitate an individual to improve his standards of performance and help in
motivating him, and boosting morale.
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5. Identifying training and development opportunities The gap identified between
the actual and expected performance through the appraisal process clearly depicts the
areas of improvement. This helps in planning the necessary training and development
activitiesfor
the
individual.
6. Selecting people for promotion

The target achievement analysis undertaken through PA process is one of the
important inputs which guides the organization to identify the deserving candidates to
shoulder higher responsibility.
7. Managing careers
During the individuals career life cycle in an organization, the PA exercise reinforce
the achievements and shortcoming. This helps in monitoring the career progression of
an individual and plan further career activities.
8. Counseling
The PA exercise forms the basis for the higher up in organization to guide and counsel
the subordinates and proceed in right direction.
9. Discipline
Since individual performance is checked through PA which helps to discipline his
work activities.
10. Planning remedial actions
Remedial action could be worked out jointly by the organization and the individual
based on the results of appraisal process.
11. Setting goal and targets
Inputs drawn past performance help to fix fresh targets for forthcoming years.
Thus, it is understood that PA are not used as control mechanism but also used for
performance improvement of individual employee as a tool for competitive advantage
for both individual and organization.
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Content of Performance Appraisal
Every organization has to decide upon the content to be appraised before the
programme is approved.
Content to be appraised may be in the form of contribution to organizational
objectives like production, cost saving, return on capital etc.
Other measures are based on
1) Behavior which measure observable physical actions, movements.
2) Objectives which measure job related results like amount of deposits mobilized.
3)Traits which measured in terms of personal characteristics observable in
employees job activities.
Performance Appraisal process :
1. Establish performance standards :
The appraisal process begins with the establishment of performance standards .These
will have evolved out of job analysis and job description .These standard should also
be clear and objective enough to be understood and measured.
2. Communicate performance expectation to employees:
Once stands are established, it is necessary to communicate these expectations. It
should not be part of the employees job to guess what is expected of them. To make
communication effective feedback is necessary from the subordinate to manager.
Satisfactory feedback ensures that the information communicated by the manager has
been received and understood in the way it is intended.
3. Measurement of actual performance
The third step in the appraisal process is measurement of performance .To determine
actual performance, it is necessary to acquire information about how we measure
and what we measure Four sources of information are frequently used to measure
actual performance. Personal observation, statistical reports, oral reports and written
reports.
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4. Compare actual performance with standards
The fourth step is to compare actual performance with standards. Attempt are made to
note deviations between standard performance and actual performance, so that we can
proceed to fifth step.
5. Discuss the appraisal with the employee
The results of appraisal are discussed periodically with employees where his good
points, weak points and difficulties are indicated and discussed so that performance is
improved. The information the subordinate receives about his assessment has great
impact on self esteem and his subsequent performance. Conveying good news is easy
for both managers and subordinates than when performance has been below
expectation.
6. Corrective action
The final step is initiated of corrective action. Corrective action is of two types, one is
immediate and deals predominantly with symptoms and the other is basic and deals
into causes. Immediate corrective action is often described as patching out fires,
where as basic corrective action gets to the source of deviation.
Coaching and counseling may be done or special assignment and project myself.
Persons may be deputed for formal training courses. Attempts may be made to
recommend salary increases or promotion.
Multiple purpose of Performance Appraisal

General application
Specific purpose
1. Developmental uses
* Identification of individual needs
* Performance feed back
* Determining transfers and job assignment
* Identification of individual strength and
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development needs
2. Administrative uses/decisions
* Salary
* Promotion
* Retention or termination
* Recognition of individual performance
* Identification of poor performance
3. Organizational maintenance/objective
* HR planning
* Determining organization training needs
* Evaluation of organizational goal achievement
* Information for goal identification
* Reinforcement of organization development needs
4. Documentation
* Criteria for validation research
* Documentation for HR decision
* Helping to meet legal requirements
Techniques of Performance Appraisal:

Performance Appraisal Method has been classified in traditional and modern
Methods. The traditional Methods lay emphasis on the rating of the individuals
personality traits, such as dependability, integrity, intelligence, judgment, leadership
potential. Organizing ability etc. on the other hand modern Methods place more
emphasis on the personality traits.
Traditional Methods:
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Traditional Methods lay more emphasis on rating of the individuals task or
personally traits such as initiative, dependability, drive, creativity etc. They are:
1) Straight ranking Method
2) Man to man comparison Method
3) Grading Method
4) Graphic or linear rating
5) Paired comparison Method
6) Forced distribution Method
7) Check lists Method
8) Free from essay Method
9) Critical incident Method
10) Group appraisal Method
1. Straight ranking Method:

It is the oldest and the simplest Method, where the man and his performance are
considered as an entity by the rater. The whole man is compared with the whole
man that is the ranking of man is done in a work group against that of another the
relative position of each man is evaluated in terms of his numerical rank. The
person are actually tested in the order of merit and placed in a simple grouping.
2. Man to man comparison Method:

In this Method, certain factors are selected for analysis purpose such as leadership,
dependability and initiative and a scale is designed by the rater for each factor. A scale
of man is also created for each selected factor. Each man to be rate is compared with
the man in the scale, and certain scores for each factor are awarded to him here, the
personnel are compared to the key man in respect of one factor at a time.
4. Grading Method:
Under this system, the rater considers certain features and marks them accordingly to
a scale. Analytical ability features are selected like co-operation, dependability, job
knowledge, judgments, organizing ability, self expression and leadership etc. they
may be:
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A Outstanding
B Good
C Average
D Fair
E Poor
The actual performance of an employee s then compared with these grading
definitions and he is allotted the grade, which describes his performance best.
5. Graphic or Linear rating scale Method:

It is the most common evaluation tool in use today. Under it, a printed form is used
for each rate. These factors are: employee characteristics and employee contribution.
In employees characteristics are included with qualities such as cooperation,
dependability, initiative, attitude, loyalty and decisiveness. In the employee
contribution are included the quantity and quality of work, responsibility assumed,
specific goals achieved etc. This Method permits a statistical tabulation of scores.
These scores indicate the worth of every individual.
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5. Forced Distribution Method:
Under this system, it is assumed that is possible and desirable to rate only two factors
such as job performance and promotion ability. For this purpose a five-point
performance scale is used between the two extremes of good and bad job
performance. This forced distribution Method assumes that of the total personnel,
certain percentages of the rates are distributed in the five grades. In addition to job
performance employees are rated for promo ability. A three point scale is often used
for this purpose:
1. Very likely promotional material
2. May or may not be promotional material
3. Very likely to be promotional material.
7. Check list Method:
Under this Method, the rater does not evaluate employees performance. He supplies
report about it and the personnel department does the final reporting. A series of
questions are presented concerning an employee on his behavior. The rater then
checks to indicate if the answer to the question about an employee is positive or
negative. The value of each question may be weighted equally or certain questions
may be weighted more heavily that others.
8. Free essay Method:
Under this Method, supervisor makes a free form, open-ended appraisal of an
employee in his own words and puts down his impression about the employees. The
description is as factual and concentrates as possible. No attempt is made to evaluate
an employee in a quantitative manner.
9. Group Appraisal Method:
Under this Method, employees are rated by an appraisal group consisting of their
supervisor and three or four of other supervisors, who have some knowledge of their
performance. The group discusses the standard of the job holder the cause of their
particular level of performance and offers suggestion for future improvements.
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10. Critical incident Method
Under this Method, supervisors keeps record of uncommonly good or undesirable
examples of an employees work related behavior and reviewing with the employee at
pre determined times. The examples may be positive or negative. Every six months or
so, supervisor and subordinate meet to discuss the latters performance, using the
incidents as examples.
11. Paired comparison Method
Under this Method, ranking the employees by making a chart of all possible pairs of
the employees for each trait and indicating which the better employee pair. This
Method makes the ranking Method more precise. For every trait you pair and compare
every subordinate with every other subordinate.
General Demerits of Traditional Techniques
Many of the above traditional performance evaluation techniques have internal
weaknesses.
Managers generally are not qualified to assess personality traits, and most managers
are even not properly trained to conduct evaluation and performance interviews. They
have very vague notions of the purpose of evaluations. Hence, they do a poor job.
Some managers discourage good performance by over-emphasizing shortcomings and
almost neglecting good work. Others have little effect on poor workers because they
tend to sugarcoat their criticisms. Consequently the real message is lost.Rater.s
personality also plays an important part in the effectiveness of evaluation
programmes. Some raters are by temperament, overtly harsh and give low rating;
some raters play favorites, some are victims of .halo. effect.
The relative status of raters in their organization is a factor that is important to the
validity of Performance Appraisal. increases validity of appraisals.
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Modern Method of Appraisal and Career Development:
As we have seen, most traditional Methods emphasize either on the task or the
worker.
personality, while making an appraisal. In order to bring about a balance between
these two, modern Methods have been developed.
Of such Methods, the most important are:
1. Appraisal by Results or Management by Objectives.
2. Assessment Centre Method.
3. Human Asset Accounting Method.
4. Behaviorally Anchored Rating Scales.
1) Management by Objective:
MBO is potentially a powerful philosophy of managing and an effective way for
operationalising the evaluation process.
It involves two steps:
First, a set of performance objective is established jointly for the employee to be
achieved over a fixed time frame. The employees performance is then rated at the end
of the specific period, on the basis of how well the employees met the goal established
earlier. This Method strongly reinforces the importance of allowing the subordinate to
participate actively in the decision that affects him directly, to sum up the three
foundations of MBO are:
a) Goal setting
b) Feedback
c) Participation
All these enhance the performance of the employees are judged on the basis of
achievement of the targets, this Method is largely applied to technical, professional or
executive and not to the hourly paid workers, because their jobs are usually too
restricted.
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Thus, under MBO programme, an employee and his supervisor meet and together
define, establish, and set certain goals or objectives which the employee would
attempt to achieve within the period of prescribed time. They also discuss the ways
and Methods of measuring employee progress. The goals, which are set, are workrelated and career oriented. The employee periodically meets his supervisor to
evaluate the employees goals progress. If necessary, these goals may be revised.
Frequent feedback and supervisor subordinate interaction are the other key features of
this Method. The supervisor plays supportive, counseling and coaching roles. In sum,
the three foundations of MBO are:
Goal-setting
Feedback
Participation
2) Assessment centre : concept was initially applied to military situations by

Simoniet in the army in the 1930s and the war Office Selection Board of the British
army in the 1960s. The purpose of this Method was and is to test candidates in a
social situation, using a number of assessors and a variety of procedures. The most
important feature of the assessment centre is job-related simulations. These
stimulations involve characteristics that managers feel are important to the job
success. The evaluators observe and evaluate participants as they perform activities
commonly found in these higher-level jobs.
Under this Method, many evaluators join together to judge employee performance in
several situations with the use of a variety of criteria. It is used mostly to help select
employees for the first level supervisory positions. Assessments are made to
determine employee potential for purpose of promotion.
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The assessment it help a couple of employees and involves a paper-and-pencil test,
interviews and situational exercises. Some of the other features of this system are:
(a) The use of situational exercises
(b) Evaluators are drawn from experienced managers with proven ability at
different levels of management;
(c) They evaluate all employees, both individually and collectively, and each
candidate mis given one of the three categories: more than acceptable, less
than acceptable and unacceptable;
(d) A summary report is prepared by the members, and feedback on a face-to-face
basis is administered to all the candidates who ask for it.
3) 360 Degree Performance Appraisal:
The appraisal may be any person who has through knowledge about the job done by
contents to be appraised, standards of contents and who observes the employee while
performing a job. The appraiser should be capable of determining what is more
important and what is relatively less important. He should asses the performance
without bias. The appraisers are supervisor, peers, subordinates employees themselves
users of service and consultants. Performance Appraisal by all these parties is called
360 degree appraisal.
4) Human asset accounting Method:
The human asset accounting Method refers to activity devoted to attaching money
estimates to the value of a firm. 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 asset is increased. If distrust and conflict prevail,
the human enterprise is devalued. If teamwork and high morale prevail, the human
organization is a very valuable. The current value of a firms human organization can
be appraised by developed procedures, by undertaking periodic measurement of .key
causal. and .intervening enterprise. variables. They key causal variables include the
structure of an organizations management policies, decisions, business leadership,
strategies, skills and behavior. The intervening variables reflect the internal state and
health of an organization. They include loyalties, attitudes, motivations, and collective
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capacity for effective interaction, communication and decision
making. These two
types of variable measurements must be made over several years to provide the
needed data for the computation of the human asset accounting.
5) Behaviorally anchored rating scales (Bars):

This is a new appraisal technique which has recently been developed. Its supporter
claims that it provides better, more equitable appraisals as compared to other
techniques.
LIMITATIONS OF PERFORMANCE APPRAISAL

The limitation for Performance Appraisal is the raters flaws in rating the appraise and
the flaws may be anyone among the following :
1. Leniency or Severity Leniency or severity on the part of the rates makes the
assessment subjective.
a) Ratings are lenient for following reasons.
b) The rates may feel that anyone under his or her jurisdiction who is rated
unfavourable will reflect poorly on his or her own worthiness.
c) He or she may rate leniently in order to win promotions for subordinates and
therefore, indirectly increase his or her hold over them.
d) He or she may be projecting.
2. Central tendency -This occurs when employees are incorrectly rated near the
average or middle of the scale. The attitude of the rater is to play safe.
3. Halo error -A halo error takes place when one aspect of an individuals
performance influences the evaluation of the entire performance of the individual.
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4. Rater Effect -This includes favouritism, stereotyping and hostility. Excessively
high or low scores are given to certain individuals or groups based on the ratter
attitude towards the ratee.
5. Primary and Recency effects -The raters rating are heavily influenced either by
behavior exhibited by the rate during the early stages of the review period (Primary)
or by outcomes, or behavior exhibited by the rate near the end of the review period
(recency).
6. Perceptual set -This occurs when the raters assessment is influenced by
previously held beliefs. If the supervisor, for example, has a belief that employees
hailing from one particular region are intelligent and hard working, his subsequent
rating of an employee hailing from that region tends to be favorably high.
7. Spill over effect -The refers to allowing past performance i.e., appraisal ratings to
unjustifiably influence current ratings.
The employee Performance Appraisal is an important career development tool for the
manager and employee. The manager can help guide the employee on the path to
corporate advancement, and the employee gets a clear understanding of what is
expected from her in her daily job duties. Performance Appraisals have a wide variety
of effects on employees that managers must identify and understand.
Motivation:
An employee Performance Appraisal can act as motivation for an employee to
improve his productivity. When an employee sees his goals clearly defined, his
performance challenges identified and career development solutions in place to help
advance his career, the effect is to motivate the employee to achieve those goals.
Creating comprehensive plan for employee development and giving an employee
achievements to strive for will inspire a higher level of efficiency.
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Clarity:
Employees perform their job duties to the best of their abilities throughout the year
based on guidance from management.Part of a Performance Appraisal is when a
manager and employee review the job description and compare the employee's
performance with expectations. This gives the employee a feeling of clarity and
understanding that will help him better perform his job duties.
Take Responsibility:
To prepare for the annual review, a manager should keep notes of all of the
employee's accomplishments and challenges throughout the year. When these are
presented to the employee during the appraisal, it gives the employee the opportunity
to benefit from her accomplishments and accept responsibility for the performance
challenges. Employees can be inspired by a comprehensive and honest Performance
Appraisal.
Teamwork:
During a Performance Appraisal, a manager needs to take time to show the employee
how his performance affects the productivity of the entire organization. When
employees understand how their performance affects the ability of others to do their
jobs, it helps put his own job duties into an overall company context. It helps improve
the notion of teamwork among the staff, and can also encourage cooperation to
achieve corporate goals.
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Legal Aspect of Performance Appraisal:
Performance Appraisal systems are not considered to be legal when their
application results in adverse effects on employees. It is not practical to provide an
exhaustive analyses of the legal implication of Performance Appraisal as may vary
from one state or country to another.
Many suggestions have been offered to make Performance Appraisal system more
legally acceptable. Some include;
1. Ensuring that the results of the appraisal are communicated to employees.
2. Emphasizing work behaviour rather than personal traits.
3. Performance Appraisal should not be used to discriminate against employees on
the basis of race, religion, age gender, disabilities, pregnancy or sexual preferences.
4. Ensuring that employees are allowed to give feedback during the appraisal
interview.
5. Appraisal should be balanced, thus recording information on both good and bad
aspects of employees performance.
6. Performance Appraisal should be consistent with personal decisions.
7.An employee should have the opportunity to comment on their appraisal results,
express their agreement or otherwise.
8.Performance should be written, documented and retained.
Any Performance Appraisal system used to make employment decisions about a
member of a protected class (i.e. Based on age, race, religion, gender, or national
origin) must be a valid system (an accurate measure of performance associated with
job requirements). Otherwise, it can be challenged in the courts based on Title VII of
the 1964 Civil Rights Act, the Civil Rights Act of 1991 and the Age Discrimination in
Employment Act of 1975 (London, 2003)
Uniform Guidelines on Employee Selection 1978 is the controlling federal law in the
area of Performance Appraisals. The Equal Employment Opportunity Commission
(EEOC) requires that any measurement used to differentiate between employees must
be valid and fairly administered. The Americans with Disabilities Act (ADA) suggests
that Performance Appraisals for people with disabilities for people with disabilities
will not be conducted any differently than those for other employees.
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CHAPTER-3
RESEARCH DESIGNOBJECTIVES OF THE
STUDY
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RESEARCH DESIGN
LITERATURE REVIEW
Performance evaluations have been conducted since the times of Aristotle
(Landy,Zedeck, Cleveland, 1983). The earliest formal employee performance
evaluation program is thought to have originated in the United States military
establishment shortly after the birth of the republic (Lopez, 1968). The measurement
of an employees performance allows for rational administrative decisions at the
individual employee level. It also provides for the raw data for the evaluation of the
effectiveness of such personnel- system components and processes as recruiting
policies, training programs, selection rules, promotional strategies, and reward
allocations (Landy,Zedeck, Cleveland, 1983). In addition, it provides the foundation
for behaviorally based employee counseling. In the counseling setting, performance
information provides the vehicle for increasing satisfaction, commitment, and
motivation of the employee. Performance measurement allows the organization to tell
the employee something about their rates of growth, their competencies, and their
potentials. There is little disagreement that if well done, performance measurements
and feedback can play a valuable role in effecting the grand compromise between the
needs of the individual and the needs of the organization (Landy, Zedeck, Cleveland,
1983).
The amount of research regarding the topic Performance Appraisal is so vast. The
topic is literally not new; it is as old as the formation of the organizations. Before
the early 1980s, majority of theoretical studies emphasized on revamping the
rating system within the organization. The actions were a great thing to reduce
the chaotic of employees Performance Appraisal (Feldman, 1981). With the
passage of the time the Methods and rating system among the employees got
enhanced and received an immense appreciation and attentions of the managers.
Behavioral Observation Scale (BOS) is one of the best techniques utilized by the
managers to rate the employees. The dilemma was on the peak in the 1960s and
1970s. In the same period couple of new innovated rating scales were introduced,
which was Behaviorally Anchored Rating Scale (BARS) and the Mixed Standard
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Scale (MSS). The innovations were dominant one which condensed the errors and
improved the observation skills from the Performance Appraisal practice.
According to the research of Arvey and Murphy (1998), there were hundreds of
thousands of researches had been taken place between the periods of 1950 to
1980, which merely focused on the different types of rating scales. Landy and Farr
(1980) reviewed and researched the Methods of Performance Appraisal in totally
a different manner, in which they understand the rater and process in an
organizational context. Other Performance Appraisal reports include the rater
characteristics in their report like race, gender and likeability.
After the year 1980 the biasness among the Performance Appraisal system
occurred outrageously and appraisal had been granted on the favoritism or race
and gender basis rather examined the knowledge, skills and style of the work of
the employee. The accuracy criteria among the Performance Appraisal system clutched
its grip in the start of the 1980s, where the researches were emphasized on common
psychometric biases which include the diversified rating errors like leniency, central
tendency and halo, which were termed as rating errors in the appraisal Method. It has
been observed that the bias free appraisals were inevitably true or more precisely we can
say more accurate, but the concept was totally refused by the research of Hulin in
1982. According to them the biasfree appraisals were not necessarily
accurate (Murphy & Balzer, 1989).
Researches which had been done in the year 1980 were found the most dominating one
which contributed the appraisal system in a great deal. The researches of the1980 also
helped out to clarify some presumed assumptions regarding the Performance Appraisal,
just like the work of Murphy (1982). Research has included the measure of employee
attitudes towards the system of Performance Appraisal and its acceptance (Roberts,
1990). Bernardian and Beatty (1984), suggested in their research that behavioral and
attitudinal kinds of measure ultimately prove to be better anticipator as compared with the
traditional psychometric variables, which we have declared earlier as well, like leniency,
halo and discriminability. A Performance Appraisal system is totally ineffective in
practice due to the dearth of approval from the end users (Roberts, 1990).
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NEED FOR THE STUDY:
This study is of most important because of its utility in the field of Human Resource
in the company. A misfit who is not in tune with the organizations commitment and
goals can damage production, customer satisfaction, and relationship with the
suppliers and overall quality of the work. It can also adversely affect the name and
fame of the organization. Counselling and training without proper Appraisal system is
of no use.
TITLE OF THE PROJECT:

A STUDY OF PERFORMANCE APPRAISAL SYSTEM FOR DIFFERENT LEVELS
AT APEX AUTO LTD AUTO LTD.
OBJECTIVES OF THE STUDY:

1. To study and analyse the Performance Appraisal system at Apex Auto Ltd Auto Ltd
for different levels.

2. To find the expectations of the Appraisee from the Performance Appraisal system.
3. To know about the reward system linkage to the Performance Appraisal.
4. To determine the satisfaction level of the Appraisee .
5. To know the effectiveness of Performance Appraisal at different levels.
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SCOPE OF THE STUDY:
1. The study provides a framework of the basic concept of Performance Appraisal of

employees in the company.
2. The management needs to do good manpower planning, do a job evaluation, and
take best actions based on these results.
3. The findings of the study will not only be beneficial to the personnel of the chosen
Organization, but also to every individual. It will also help managers in other
organizations in setting goals and targets for employees to achieve through proper
supervisory control by line managers.
4. Aid in identifying and improving the training and development needs of workers.
5. Assist in motivating employees who contribute effectively to the attainment of
organizational goals and objectives.
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TYPE OF RESEARCH:
The research is descriptive type. Descriptive research provides the researchers with a
general understanding of the problem and seeks conclusive data to answer question
necessary to determine a particular cause of action. Exploratory research provides the
researcher an opportunity to extract the hidden things and helps in understanding the
unknown facts of the problem.
SAMPLE UNIT:
The study was conducted at APEX AUTO LTD AUTO LTD comprising
approximately 350 employees.
SAMPLE SIZE:
The data is prepared based on the gathered information. The sample size of 50
respondents was evaluated, collected and considered.30 respondents from shop floor
workers and 20 respondents from staff level employees.
SAMPLING METHOD:
The respondents were chosen on the basis of non probability Method of sampling
called judgemental sampling and convenient sampling.
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TYPE OF DATA COLLECTION:
To know the Recruitment & Selection Limited, the following source of data was used.
1) Primary Data :
Questionnaire Survey.
Interaction with the employees.
2) Secondary Data :
Company websites
Company handbook
Previous records
To understand the organization, the work culture, the companys vision, mission,
goals, value, different policies in the company, the employees, the employers, the
management style, the strength and weakness of the company data collection were
made from all possible sources. Both the primary data and secondary data were
collected from various sources.
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METHOD OF ANALYSIS:
Raw primary data was collected with the help of a questionnaire. The raw data was
then tabulated. Based on this bar chart were prepared. Analysis was conducted and
interpreted. Conclusions were drawn based on that.
STATISTICAL TOOLS FOR ANALYSIS:
Statistical tools such as tabulation, percentage calculation, and construction of bar
charts a column charts are used.
LIMITATIONS OF THE STUDY:
1. The data collected from the respondents is assumed to be true.
2. Most of the respondents were reluctant in providing the data.
3. The study was restricted within the company .
4. The information was collected through questionnaire and the actual perception of
the respondents may differ.
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CHAPTER-4
ANALYSIS,INTERPRETATION
AND FINDINGS
DATA ANALYSIS AND INTERPRETATION

The data is gathered considering the primary data i.e. questionnaire, using which
survey of 30 respondents from shop floor employees and 20 respondents from staff
level was collected. Based on these collected data an study of Performance Appraisal
system for different levels in the company is studied.
Personal Details of Employees:

a. Age
Table 2.a showing age level of employees
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Sl No
1
2
3
4
Staff level
Respondents
Percentage
06
30
10
50
03
15
01
05
20
100
Age
20-30
30-40
40-50
Above 50
Total
Workers
Respondents Percentage
20
67
07
23
03
10
00
00
30
100
Graph 2.a Showing age level of employees
Age level of employees

80
60
Percentage 40
20
0
67
50
30
23
20-30
30-40
15 10
40-50
staff
Employees
Above050
Evaluation Criteria
Interpretation:- From the above graph it can be interpreted that 30% of respondents
from staff level and 67% respondents from workers are of 20-30 yrs of age,50% of
staff and 23% of workers are of 50-23 yrs of age,15% of staff and 10% of workers of
40-50 yrs of age ,5% of staff are above 50 yrs of age.
b. Education level of employees
Table 2.b Showing qualification level of employees
Sl No
1
2
3
4
Education
School level
ITI/PUC
Diploma
Graduates
Total
Staff level
00
00
00
00
09
45
11
55
20
100
Workers
06
20
23
77
01
03
00
00
30
100
Graph 2.b Showing qualification of employees
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Education level of employees
90
77
80
70
60
55
50
45
Staff
workers
Percentage 40
30
20
20
10
0
3
school
0 level ITI/PUC
0
Diploma
graduates
0
Parameters
Interpretation:- From the above graph it can be interpreted that 20% respondents
from workers are of school level ,77% of workers are of ITI/PUC level,45% of staff
and 3% of workers are of diploma level,55% of staff are above 50 yrs of age.
c. Gender of employees
Table 2.c Showing gender of employees
Sl No
1
2
Particulars
Male
Female
TOTAL
Staff level
Percentag
Respondents
e
19
95
01
05
20
100
Workers
Respondents
30
00
30
Graph 2.c Showing gender of employees
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Percentage
100
00
100

Gender of the Employees
120
100
95
100
80
Percentage
Staff
Workers
60
40
20
0
5
Male
Female
0
parameters
from staff level and all respondents from workers are male,1% female from staff
level.
d. Marital Status of employees

Table 2.d Showing Marital Status of employees
Sl No
1
2
Particulars
Single
Married
TOTAL
Staff level
Respondent
Percentage
s
04
20
16
80
20
100
Workers
Respondents
15
15
30
Graph 2.d Showing Marital Status of employees

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Percentage
50
50
100

Marital Status of employees

90
80
70
60
50
Percentage 40
30
20
10
0
80
50
50
staff
workers
20
Single
Married
Parameters
from staff level and 50% respondents from workers are single,80% of staff and 50%
of workers are married.
e. Working experience of employees

(How long have you been working in this company?)
Table 4.e Showing Working experience of employees
Sl No
1
2
3
4
5
years
Less than 1 yr
1-3 yrs
3-5 yrs
5-10 yrs
Above 10 yrs
Total
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Staff level
Percentag
Respondents
e
01
05
08
40
02
10
07
35
02
10
20
100
Page 81
Workers
Respondents
00
03
07
13
07
30
Percentage
00
10
23
43
24
100

Graph 4.e Showing Working experience of employees
working experience of employees

40
35
43
24
23
staff
workers
yr
s
10
ab
ov
e1
les
st
ha
n1
10
35y
rs
10
5
yr
Percentage
50
40
30
20
10
0
Parameters

from staff level and no respondents from workers worked less than 1 yr,40% of staff
and 10% of workers worked 1-3 yrs,10% of staff and 23% of workers worked 5-10yrs
,10% of staff and 24% of workers worked above 10 yrs.
1. Awareness of Performance Appraisal
(Q.No.1Are you aware of Performance Appraisal at your organization)
Table 2.1 Showing awareness of Performance Appraisal
Sl No
Particulars
1
2
Yes
No
TOTAL
Staff level
20
100
00
00
20
100
Workers
22
73
08
27
30
100
Graph no 2.1 Showing the awareness of Performance Appraisal
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Awareness of Performance Appraisal
120
100
80
percentage
100
73
Yes
60
No
40
27
20
0
Staf
Workers
parameters
Interpretation:- From the above graph it can be interpreted that 100%
of
respondents from staff and 73% of respondents from workers are aware of
Performance Appraisal system .None of the respondents from staff are unaware 27%
of respondents from workers are unaware of the Performance Appraisal system
carried out.
2. Awareness of Performance Appraisal Method
(QNo.2 . Are you aware of Performance Appraisal Method
organization)
followed in your
Table 2.2 Showing awareness of Performance Appraisal Method

Sl No
Particulars
1
2
Yes
No
TOTAL
Staff level
20
100
00
00
20
100
Workers
21
70
09
30
30
100
Graph no 2.2 Showing the awareness of Performance Appraisal Method
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Awareness Of Performance Appraisal Method
120
100
100
80
Percentage
70
staff
workers
60
40
30
20
0
Yes
0 No
Evaluation Criteria
of
respondents from staff and 70% of respondents from workers are aware of
Performance Appraisal Method and none of the respondents from staff and 30%
of respondents from workers are unaware of the Performance Appraisal Method
carried out.
3.Timing of Performance Appraisal.
(Q.No.3 Timing of Performance Appraisals)
Table 2.3- Showing timing of Performance Appraisal.
Sl No
1
2
3
4
5
Particulars
Monthly
Quarterly
Half Yearly
Annually
Any time
TOTAL
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Staff level
Respondent
Percentage
s
01
05
00
00
00
00
18
90
01
05
20
100
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Workers
Respondent
Percentage
s
17
56
00
00
00
00
10
34
03
10
30
100

Graph no 2.3- Showing response towards the timing of conducting Performance
Appraisal.
Timing of Appraisal
90
100
80
56
60
5 10
5
ua
ter
ly
0 0
M
on
thl
y
0 0
Staff
Workers
An
nu
al
An
yti
me
20
Ha
lf y
ea
rly
percentage
34
40
parameters

from staff say that Performance Appraisal is conducted every month, none say
quarterly and half yearly and 90% said conducted yearly and 5% said anytime. 56%
of respondents from workers say that Performance Appraisal is conducted every
month, none of them said quarterly and half yearly and 34% of them said it is
conducted yearly and 10% of respondents said anytime.
4. Awareness of Performance Appraisal ratings
(Q.No.4 Are you aware of Performance Appraisal ratings followed in your
organization)
Table 2.4 Showing awareness of Performance Appraisal ratings
Sl No
Particulars
1
2
Yes
No
TOTAL
Staff level
18
90
02
10
20
100
Workers
23
77
07
23
30
100
Graph no 2.4 Showing the awareness of Performance Appraisal ratings
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The Awareness of Performance Appraisal Ratings
100
90
80
70
60
Percentage 50
40
30
20
10
0
90
77
staff
workers
23
10
Yes
No
Evaluation Criteria

respondents from staff and
of
77% of respondents from workers are aware of
Performance Appraisal ratings and 10% of respondents from staff and 23% of
respondents from workers are unaware of the Performance Appraisal ratings
carried out.
5. Method of Performance Appraisal used in the company.
(Q.No.5 Which Method Performance Appraisal does the company use.)
Table 2.5 - Showing Method of Performance Appraisal used in the company
Sl
No
1
2
Staff level
Percentag
Particulars
Respondents
e
Traditional Method
20
100
Modern Method
00
00
TOTAL
20
100
Graph 2.5
Workers
100
00
100
- Showing response towards the Method of Performance

Appraisal used in the company.
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30
00
30
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Method Of Performance Appraisal
120
100
100
100
80
percentage
60
Staff
Workers
40
20
0
Traditional Method
Modern
0 Method
0
parameters
Interpretation :
From the above graph it can be interpreted that 100% of
respondents from staff and 100% of respondents from workers say traditional
Method is followed and none of respondents say modern Method is followed.
5(a). If tradition Method, then which of the following.

(Q.No.5 If tradition Method, then which of the following method is
followed)
Table 2.5 (a) - Showing the traditional Method of Appraisal followed.
Sl
Association with the
No
firm
1
2
3
4
Essay appraisal
Method
Paired comparison
Method
Check list Method
Critical incident
Method
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Staff level
Respondent
Percentage
s
Workers
Respondents
Percentage
00
00
00
00
01
05
00
00
18
90
28
93
00
00
02
07
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5
6
7
Graphical incident
Method
Field review Method
Force distribution
Method
TOTAL
00
00
00
00
01
05
00
00
00
00
00
00
20
100
30
100
Traditional Method Of Performance Appraisal

100
93
90
90
80
70
60
50
40
percentage
Staff
Workers
30
20
10
Es
sa
ya
pp
ra
isa
l
parameters
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5
00
0 00
Cr
itic
al
inc
ide
nt
me
tho
Fo
d
rc
ed
ist
rib
uti
on
me
tho
d
00
me
tho
d
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Interpretation: From the above graph it can be observed that none of the respondent
from staff and workers say essay appraisal Method is followed, 5% of staff and none
of the workers say paired comparison Method, 90% of staff and 93% of workers say
check list Method , 5% of staff say field review Method, 7% of workers say critical
incident Method and no respondent say graphical incident Method, force distribution
Method is followed.
5(b). If modern Method, then which of the following.

(Q.No. 5b. If modern Method, then which of the following method is followed)
Table 2.5 (b)- Showing following the modern Method.
Particulars
Staff level
workers
Management By Objective (MBO)

360 degree appraisal
00
00
00
00
Assessment centre
00
00
Human Resource accounting
00
00
Total
00
00
Interpretation:
From the above table it can be interpreted that the company organization does not
follow any modern Method of appraisal.
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6.Performance Appraisal criteria

(Q.No.6 Performance Appraisal criteria)
Table 2.6 Showing response towards Performance Appraisal criteria
Particulars
Quantitative Outcome Criteria
Staff level
25%
Workers
40%
Qualitative Outcome Criteria
35%
60%
Quantitative Process Criteria
55%
44%
Qualitative Process Criteria
40%
37%
Graph no.2.6 Showing Response towards Performance Appraisal criteria
Response towards Performance Appraisal Criteria
40
25
ua
lita
tiv
ep
Q
ua
nti
tat
ive
ou
tco
55
44
35
me
cr
ite
ria
Percentage
60
Evaluation Criteria
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4037
ro
ce
ss
cr
ite
ria
70
60
50
40
30
20
10
0
Page 90
staff
workers

Interpretation: - From the above it can be noticed that 25% respond from staff
level say and 40% from workers level say quantity outcome is the criteria ,35%
from staff 60% from workers say
qualitative process is the criteria, 55% from
staff and 44% from workers say quantitative process is criteria,40% from staff
37% from workers say qualitative process criteria.
7.Chance given by Appraiser to discuss the views freely.

(Q.No.7 Does the appraiser give you a chance to discuss your views freely during
the Appraisal.)
Table 2.7- Showing Chance given by Appraiser to discuss the views freely.
Sl No
Particulars
1
2
Yes
No
TOTAL
Staff level
Respondents
Percentage
15
75
05
25
20
100
Workers
25
84
05
16
30
100
Graph 2.7- Showing response towards the appraiser gives you a chance to
discussing your views freely during the Appraisal.
Response towards the Appraiser
90
80
84
75
70
60
50
staff
worker
Percentage 40
25
30
16
20
10
0
Yes
No
Parameters
Interpretation:
DVH-IMSR
Page 91

According to the graph 75% respondent from staff level and 84% of workers say the
appraisal gives chance to discussing the views freely during the appraisal , 25% from
staff and 16% of workers level say no.
8. Who conducts Performance Appraisal
(Qno. 8. Who conducts the Performance Appraisal)
Table 2.8 Showing response towards who conducts Performance Appraisal
SL
No
Staff level
Parameter
Workers
Respondents
Percentag
23
76
Immediate
09
e
45
supervisor
Peer appraisal
00
00
00
00
Rating
06
30
02
07
committees
Self rating
05
25
02
07
Appraisal by
00
00
03
10
subordinates
Combination of
00
00
00
00
20
100
30
100
all/ any other

kind of
combination
Total
DVH-IMSR
Page 92

Response towards who conducts appraisal
80
76
70
60
50
45
40
30
30
25
staff
workers
20
7
10
Im
me
dia
te
su
pe
rv
iso
r
00
Se
lfra
tin
g
Percentage
10
7
0
00
Parameters
Interpretation :From the pictorial representation it can be interpreted that 45% of

respondents from staff level and 76% from workers level say immediate supervisor
evaluates the performance, no respondent say peer appraisal evaluates,30% of staff
level and 7% of workers say rating committees section head who evaluates the
performance,25% of staff say and 7% of workers level say self-rating is followed,10%
of workers say appraisal by subordinates and none of them say combination of all.
DVH-IMSR
Page 93

9. Communication between the top-management plans and business goals to
lower level.
(Q.No.9 Does the appraisal system provides a good communication between the topmanagement plans and business goals to lower level.)
Table 2.9- Showing communication between the top-management plans
and business goals to lower level.
Sl No
Particulars
1
2
Yes
No
TOTAL
Staff level
20
100
00
00
20
100
Workers
27
90
03
10
30
100
Graph 2.9- Showing response towards the communication between the topmanagement plans and business goals to lower level.
Response Towards Communication Between the Top Mgt and Business Goals
120
100
100
90
80
percentage
staff
workers
60
40
20
0
10
yes
0 no
parameters
Interpretation: From the above graph it can be interpreted that 100% of respondent
from staff level and 90% of workers level say that the appraisal provides a good
communication between the top management plans and business goals to lower level,
10% of workers level say that the appraisal does not provides a good communication
between the top management plans and business goals to lower level.
10.Opportunity for Rating own Performance
DVH-IMSR
Page 94

(Q.No.10 Do you think you should be given an opportunity to rate your own
performance)
Table2.10 Showing response for opportunity for Rating own Performance
Sl No
Particulars
1
2
Yes
No
TOTAL
Staff level
19
95
01
05
20
100
Workers
23
77
07
23
30
100
Graph no.2.10 Showing the response for rating own performance.
Rating own performance

100
90
80
70
60
Percentage 50
40
30
20
10
0
95
77
Staff
Workers
23
5
Yes
No
parameter
Interpretation:-
From the above graph it can be interpreted that 95% of respondents from staff level
and 77% of workers level say yes to be given an opportunity to rate their performance
and 5% of respondents from staff level and 23% of workers level say no.
11. Expectation of Performance Appraisal

DVH-IMSR
Page 95

(Q.No.11 Expectation of Performance Appraisal)
Table 2.11 (a) Showing response towards expectation of Performance Appraisal
of staff level
Criteria/
ratings
Salary
&
benefits
Determinatio
n
of
Promotion
/transfer
Decisio
n on
layoff
Assistanc
e in goal
Guideli
ne for
trainin
g plan
1(most
Preferred)
11
10
00
02
01
Insight
into your
strengths
and
weakness
01
2(more
preferred)
3(preferre
d)
4(neutral)
5(less
preferred)
6(least
preferred)
Total
06
05
00
02
01
02
02
04
00
09
03
08
01
00
01
00
03
16
03
03
11
04
08
01
00
00
01
01
00
00
20
20
20
20
20
20
Graph no. 2.11 (a) Showing response towards expectation of Performance

Appraisal of staff level
DVH-IMSR
Page 96

as
sis
tan
ce
in
go
al
Sa
lar
ya
dm
ini
str
ati
on
an
d
be
ne
fits
90
80
80
70
55
60 55
50
45
50
40
40
40 30
25
30
20
20
15
15
15
15
20
10
10
10
10
5
5
5
5 55
5 5
10
0
00
00 000
0
0
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Interpretation:-
1. Salary administration and Benefits:- From the pictorial representation it can be

interpreted that 55% of the respondents think it is most preferred criteria and 30% of
them think it as a preferred criteria as they have rated it as (2), 10% of them have
rated (3), 5% of them rate (4) which reveals that they think it as a neutral, no
respondents rated (5) and(6).
2.Determination of promotion or transfer :- From the graphical representation it
can be interpreted that 50% of the respondents think it is most preferred criteria and
25% of them think it as a preferred criteria as they have rated it as (2), 20% of them
have rated (3), 5% of them rate (4) which reveals that they think it as a neutral,
no respondents rated (5) and(6).
3. Decision of layoff :- From the graph it is evident and can be interpreted that around
15% rate it rated (4), 80% of them rate (5) as they think its less preferred criteria and
5% of the respondents think its the least preferred criteria so they rate it (6).
DVH-IMSR
Page 97

4.Assistance in goal :- From the graph it can be interpreted that 10% of the
respondents think it is most preferred criteria and rest 10% of them think it as a more
preferred criteria as they have rated it as (2), 45% of them have rated (3), 15% of
them rate (4) which reveals that they think it as a neutral, respondents rating (5)
comprises of 15% who think it is not preferred and the rest 5% comprises of
respondents rating (6) which reveals that they prefer it as least preferred criteria.
5.Guidelines for training plan:- From the graphical representation it can be
rated (3), 55% of them rate (4) which reveals that they think it as a neutral,
respondents rating (5) comprises of 20% who think it is not preferred criteria ie.
Guidelines for training is expected from Performance Appraisal.
6. An insight to strength and weakness:- From the pictorial representation it can be
respondents rating (5) comprises of 5% who think it is not preferred criteria
12. Expectation of Performance Appraisal

(Qno.11 Expectation of Performance Appraisal)
DVH-IMSR
Page 98

Table 2.11(b) Showing response towards Purpose of Performance Appraisal of

workers level
Criteria/
Salary
Determinatio
Decision
Assistanc
Guideline
Insight
Ratings
&
on
e in goal
for
into your
benefit
Of Promotion/ layoff
training
strengths
transfer
plan
and
1(most
15
weakness
1
Preferred)
2(more
11
preferred)
3(preferred)
4(neutral)
5(less
4
1
1
2
5
3
0
0
29
12
3
10
7
11
4
8
9
9
preferred)
6(least
preferred)
Total
30
30
30
30
30
30
Graph 2.11 (b) Showing expectation from Performance Appraisal.
DVH-IMSR
Page 99

120
97
100
80
60 50
0 0000
10
3 77
3
37
23
17 13
10
tra
ini
ng
pla
n
on
lay
of
f
Sa
lar
y&
be
ne
fits
33
27303030
10
3
Gu
ide
lin
ef
or
17
6 10
15
33
20
40
37
30
30
De
cis
ion
on
40
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
Interpretation:-
1. Salary administration and Benefits:- From the pictorial representation it can be

rated (3), 3% of them rate (4) which reveals that they think it as a neutral, respondents
rating (5) comprises of 3% who think it is not preferred criteria.
2.Determination of promotion or transfer :- From the graphical representation it
can be interpreted that 30% of the respondents think it is most preferred criteria and
37% of them think it as a preferred criteria as they have rated it as (2), 6% of them
have rated (3), 17% of them rate (4) which reveals that they think it as a neutral,
Determination of promotion or transfer.
DVH-IMSR
Page 100

3. Decision of layoff :- From the graph it is evident and can be interpreted that around
3% rate it (5) as they think its not preferred criteria and majority i.e 97% of the
respondents think its the least preferred criteria so they rate it (6).
4.Assistance in goal :- From the graph it can be interpreted that 7% of the
respondents think it is most preferred criteria and rest 7% of them think it as a
preferred criteria as they have rated it as (2), 40% of them have rated (3), 10% of
them rate (4) which reveals that they think it as a neutral, respondents rating (5)
comprises of 3% who think it is not preferred and the rest 3% comprises of
respondents rating (6) which reveals that they prefer it as least preferred criteria.
5.Guidelines for training plan:- From the graphical representation it can be
Guidelines for training is expected from Performance Appraisal.
6. An insight to strength and weakness:- From the pictorial representation it can be
respondents rating (5) comprises of 30% who think it is not preferred criteria
DVH-IMSR
Page 101

12. Opinion on Performance Appraisal motivates employees.
(Q.No.12 Do you agree that the Appraisal system motivates the employees.)
Table 2.12- Showing Performance Appraisal System motivating the employees.
SL
Parameter
Staff level
Workers level
Respondent
Percentag
Respondents
Percentage
o
1
Strongly agree
s
11
e
55
19
63
Agree
06
30
08
27
Neutral
03
15
00
00
Disagree
00
00
00
00
Strongly disagree
00
00
02
10
TOTAL
20
100
30
100
DVH-IMSR
Page 102

Graph 2.12- Showing response towards the Performance Appraisal
System motivating the employees
Performance System Motivating employees
St
ro
ng
ly
Ag
re
e
percentage
63
55
3027
15
10
0
00
Di
sa
gr
ee
70
60
50
40
30
20
10
0
staff
workers
parameters
Interpretation : From above graph it is interpreted that , 55% of respondent from

staff level and 63% of
workers level strongly agree that the appraisal system
motivates the employees, 30% of respondent from staff level and 27% of workers
level agree, 15% of respondent from staff level and none of the workers level
neither agree nor disagree,10% of workers strongly disagree.
13. Rewards are based on Performance Appraisal.
(Q.No.13 Do you feel that the rewards are based on Performance Appraisal.)
Table 2.13 (a)- Showing rewards are based on Performance Appraisal.
Sl No
DVH-IMSR
Particulars
Staff level
Respondent
Percentage
s
Page 103
Workers
Respondents
Percentage

1
2
Yes
No
TOTAL
19
01
20
95
05
100
22
08
30
74
26
100
Graph 2.13 (a)- Showing responses towards the rewards are based on
Performance Appraisal.
Rewards linked to the Performance Appraisal

100
95
90
80
74
70
60
pe rce ntage
staff
workers
50
40
26
30
20
5
10
0
yes
no
parame te rs
from staff and 74% of respondents from workers say rewards are linked to
Performance Appraisal and 5% of respondents from staff and 26% of respondents
from workers say rewards are linked to the Performance Appraisal.
13 .If Yes, what kind of reward system motivates you.

(Q.No.13 b. If Yes, what kind of reward system motivates you.)
Table 2.13 (b)- Showing kind of reward system motivates you.
SL No
Parameter
Staff level
Respondents
Workers level
Percentag
e
DVH-IMSR
Page 104
Respondents
Percentage

1
Salary increases
47
`13
59
Annual performance
26
14
award certificate
Outstanding
16
18
performance awards
Promotion to higher
position
Appreciation letters
11
Any other specify
Total
19
100
22
100
Graph no 2.13 (b)- Showing response towards the kind of reward system
motivates you.
Response towards the Kind of Reward System
percentage
59
47
26
14 1618
4
0
114
Sa
lar
uts
yi
tan
nc
din
re
as
gp
es
er
fo
rm
an
ce
aw
ar
ds
Ap
pr
ec
iat
ion
let
ter
s
70
60
50
40
30
20
10
0
00
Staff
Workers
parameters
Interpretation : From the above graph it can be interpreted that 47% of respondent
from staff level and 59% of workers say salary increases is the reward that motivates
them, 26% of staff and 14% of workers said that annual performance certificate
motivates them ,16% of the staff 18% of workers say outstanding certificate motivates
them, and 4% of workers say promotion to higher position motivates them, 11% of
DVH-IMSR
Page 105

staff
and 4% of workers said that appreciation letter motivates them ,nobody
specified any other.
14. Common errors found during Performance Appraisal.

(Q.No.14 What are the common errors found during Performance Appraisal.)
Table 2.14- Showing common errors found during Performance
Appraisal.
SL
Parameter
DVH-IMSR
Staff level
Page 106
Workers level

N
Respondent
Percentag
Respondents
Percentage
o
1
Leniency
s
01
e
05
05
17
Halo error
02
10
05
17
Rater effect
06
30
05
17
Perceptual effect
00
00
04
14
Central tendency
11
55
11
35
TOTAL
20
100
30
100
Graph no 2.14- Showing response towards the common errors found during
Performance Appraisal
Errors found during Appraisal
55
35
30
17
14
0
en
tra
l te
nd
en
cy
1017
eff
ec
t
staff
workers
.C
17
.R
ate
r
Le
nie
nc
y
Percentage
60
50
40
30
20
10
0
Parameters
Interpretation:From the above graph it can be interpreted that 5% respondent from

staff and 17 % of workers level say common error during Performance Appraisal is
leniency, 10% of staff and 17% of worker say halo error, 30% of staff and 17% of
worker say rater effect, 14% of workers say perceptual effect and 55% of staff and
35% of workers said central tendency .
Q.No.15. In the existing Performance Appraisal System is it that low performance is
highlighted but no development support is defined.
Table 2.15- Showing existing Performance Appraisal System is it that low
performance is highlighted but no development support is defined.
SL
Parameter
DVH-IMSR
Staff level
Page 107
Workers level

N
Respondent
Percentag
o
1
Strongly agree
s
01
e
05
11
37
Agree
04
20
08
27
Neutral
07
35
05
07
Disagree
06
30
03
10
Strongly disagree
02
10
03
10
TOTAL
20
100
30
100
.S
tro
ng
ly
Di
sa
gr
ee
or
Di
sa
gr
ee
N
eit
he
rA
gr
ee
N
St
ro
ng
ly
Ag
re
e
Existing appraisal system is that low performance highlighted but no development support is defined
37
35
40
30
35
27
30
20
25
20
10
10 10
15
7
5
10
5
0
staff
percentage
workers
parameters
Interpretation : From above graph it is interpreted that , 5% of respondent from staff

level and 37% of workers level strongly agree that In the existing Performance
Appraisal System is it that low performance is highlighted but no development
support is defined., 20% of respondent from staff level and 27% of workers level
agree, 35% of respondent from staff level and 7% of workers level neither agree nor
disagree,30% from staff and 10% of workers disagree ,10% of staff and 10% of
workers strongly disagree.
Q.NO.16. Are there any training program provided by the company to improve the
performance.
Table 2.16 (a)- Showing any training program provided by the company to
improve the performance.
Sl No
DVH-IMSR
Particulars
Staff level
Page 108
Workers

1
2
Yes
No
TOTAL
19
01
20
95
05
100
30
00
30
100
00
100
Training provided by the company to improve the performance

120
100
95
100
80
Percentage
staff
workers
60
40
20
0
5
Yes
no 0
Parameters
from staff level and 100% of workers level say yes that training program provided
by the company to improve the performance and 5% of respondents from staff level
and 0% of workers level say no.
Q.NO.16.b) If yes,
a. On the job
b. Off the job
Table 4.16 (b)- Showing any training program provided by the company
to improve the performance is on the job or off the job.
DVH-IMSR
Page 109

Sl
No
1
2
Staff level
19
90
01
10
20
100
Particulars
On the job
Of the job
TOTAL
Workers
30
100
00
00
30
100
Graph no. 4.16 (b)- Showing any training program provided by the
company to improve the performance is on the job or off the job.
Training program provided by the company
120
100
90
100
80
Percentage
Staff
Workers
60
40
20
0
10
On the job
Of the job
0
Parameters
from staff level and 100% of workers level say yes that training program provided
by the company is on the job and 10% of respondents from staff level and 0% of
workers level say training program provided by the company is off the job.
Q,NO.17. Is the training and counseling session after the appraisal

satisfactory.
Table 2.17 showing Is the training and counseling session after the appraisal
satisfactory
SL
Parameter
N
o
1
Strongly agree
DVH-IMSR
Staff level
Workers level
Respondent
Percentag
Respondents
Percentage
s
04
e
20
11
36
Page 110

2
Agree
13
65
10
33
Neutral
03
15
00
00
Disagree
00
00
04
14
Strongly disagree
00
00
05
17
TOTAL
20
100
30
100
Training and counseling session after the appraisal is satisfactory

65
33
A
ly
staff
workers
Ne
ith
er
A
.S
tro
gr
ee
ng
ly
No
r
ng
St
ro
17
14
Di
sa
gr
ee
15
gr
ee
20
gr
ee
Percentage
36
Di
sa
70
60
50
40
30
20
10
0
Interpretation : From above graph it is interpreted that , 20% of

respondent from staf level and 36% of workers level strongly agree
that the training and counseling session after the appraisal satisfactory. , 65% of
respondent from staff level and 33% of workers level agree, 15% of respondent
from staff level and none of the workers level neither agree nor disagree, 14% of
workers disagree , 17% of workers strongly disagree.
Q.NO.18) What do you think is the objective of the Performance Appraisal?
Table 2.18 showing the objective of the Performance Appraisal
Particulars
Staff level
Workers level
Promotion
35%
10%
Training needs
50%
7%
Increase in pay
35%
37%
Job satisfaction
55%
40%
DVH-IMSR
Page 111

Graph 2.18 showing the objective of the Performance Appraisal
Objective of the Performance Appraisal

60
50
40
55
50
35 37
35
40
30
Percentage 20
10
10
staff
workers
7
ay
In
cr
ea
se
in
p
Pr
om
ot
ion
Parameters

staff level and 10% of workers level think that promotion is the objective of the
Performance Appraisal. , 50% of respondent from staff level and 7% of workers
level think assessing training needs is the objective of the Performance Appraisal,
35% of respondent from staff level and 37% of workers level say increase in pay,55
% from staff and 40% of workers say job satisfaction.
Q,NO.19.Are you satisfied with the appraisal system and does it meet the above
objectives.
Table no 2.19 showing satisfied with the appraisal system and does it meet
the above objectives.
Sl No
Particulars
1
2
Yes
No
DVH-IMSR
Staff level
18
90
02
10
Page 112
Workers
22
74
08
26

TOTAL
20
100
30
100
Graph no. 2.19 showing satisfied with the appraisal system and does it
meet the above objectives
Satisfaction with the Appraisal system

100
80
90
74
60
Percentage
40
26
20
0
staff
workers
10
yes
no
Parameters
Interpretation:- From the above graph it can be interpreted that 9O%
of
respondents from staff and 74% of respondents from workers are satisfied appraisal
system and meet the above objectives and 10% of respondents from staff and 26%
of respondents from workers say are not satisfied.
20.Satisfaction level regarding the Appraisal System.

(Q.No.20. Rank the level of satisfaction regarding the Appraisal System.)
Table 2.20- Showing the satisfaction level regarding the Appraisal System.
SL
Parameter
Staff level
Workers level
Respondent
Percentag
o
1
Highly satisfied
s
03
e
15
11
36
Satisfied
12
60
16
54
DVH-IMSR
Page 113

3
Neither satisfied
04
20
00
00
Dissatisfied
00
00
00
00
Highly dissatisfied
01
05
03
10
TOTAL
20
100
30
100
Graph 2.20- Showing response towards the satisfaction level regarding the
Appraisal System.
Rank the satisfaction level of Appraisal system
36
15
fie
d
D
is
sa
tis
0 0
staf
workers
.S
sa
tis
fie
d
Parameters
ei
th
er
5 10
tro
ng
ly
or
D
is
s
at
is
fie
d
20
hi
gh
ly
Percentage
6054
sa
tis
fie
d
70
60
50
40
30
20
10
0

staff level and 36% of workers level are highly satisfied with present appraisal
system. , 60% of respondent from staff level and 54% of workers level are satisfied,
20% of respondent from staff
level ,5% of staff and
10% of workers highly
dissatisfied.
21.Opinion on Appraisal leads to improvement on Job Performance.

(Q.No.21 Do you feel that appraisal has lead to improvement in your Job
Performance)
Table 2.21- Showing the Appraisal leads to improvement on Job Performance.
DVH-IMSR
Page 114

SL Parameter
Staff level
Workers level
Respondent
Percentag
Respondents
Percentage
o
1
Not much
s
02
e
10
02
06
Little
02
10
05
17
Somewhat
07
35
05
17
Much
09
45
18
60
TOTAL
20
100
30
100
Graph.no. 2.21- Showing response towards the appraisal has lead to

improvement in your job performance
Appraisal has lead to improvement in your job performance
80
60
60
percentage 40
20
0
45
35
10 6
not much
10
17
little
staff
workers
17
somewhat
much
parameters

staff level and 6% of workers level say not much Appraisal leads to improvement on
Job Performance , 10% of respondent from staff level and 17% of workers level say
little, 35% of respondent from staff level and 17% of workers say some what ,45%
of staff and 60% of workers say much.
22. Opinion on Performance Appraisal System contributes to the achievement of
organizational goals.
(Q.No.22 Does the Performance Appraisal System contribute to the achievement of
organizational goals.)
DVH-IMSR
Page 115

Table 2.22- Showing the Performance Appraisal System contributes to the
achievement of organizational goals.
SL Parameter
Staff level
Workers level
Respondent
Percentag
Respondents
Percentage
o
1
Strongly agree
s
03
e
15
13
43
Agree
14
70
11
37
Neutral
02
10
00
00
Disagree
00
00
06
20
Strongly disagree
01
05
00
00
TOTAL
12
100
30
100
Graph 2.22- Showing response towards the Performance Appraisal System

contributes to the achievement of organizational goals.
70
37
0
rA
he
Ne
it
ly
0
staff
workers
ng
gr
ee
St
ro
Di
sa
No
r
ng
ly
Di
sa
gr
ee
gr
ee
Percentage
20
10
gr
ee
43
15
.S
tro
80
70
60
50
40
30
20
100
Parameters
Interpretation : From above graph it is interpreted that , 15% of

respondent from staf level and 43% of workers level strongly agree
that Performance Appraisal System contribute to the achievement of organizational
goals
, 70% of respondent from staff level and 37% of workers level agree, 10%
of respondent from stafflevel,neither agree nor disagree, and 20% of workers

disagree ,5% of staf strongly disagree.
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23.Performance Appraisal helps to identify the strength and weakness of the
employee.
(Q.No.23 Is the appraisal system able to show the areas in which a person needs
improvement and also helps identify the strength and weakness of the employee.)
Table 2.23- Showing the Performance Appraisal helps to identify the strength
and weakness of the employee.
SL
Parameter
Staff level
Workers level
Respondent
Percentag
o
1
Strongly agree
s
02
e
10
10
34
Agree
14
70
14
46
Neutral
03
15
00
00
Disagree
00
00
03
10
Strongly disagree
01
00
03
10
TOTAL
20
100
30
100
Graph 2.23- Showing response towards the Performance Appraisal helps to

identify the strength and weakness of the employee
80
70
60
50
40
30
20
10
0
70
46
34
15
10
10
0
ng
.S
tro
gr
ee
Ne
it
he
rA
ly
No
r
Di
sa
A
ly
ng
St
ro
staff
workers
gr
ee
gr
ee
Di
sa
gr
ee
10

staff level and 34% of workers level strongly agree that appraisal system able to
show the areas in which a person needs improvement and also helps identify the
strength and weakness of the employee , 70% of respondent from staff level and 46%
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of
workers level agree, 15% of respondent from staff
level neither agree nor
disagree, 10% of workers disagree ,10% of workers strongly disagree.

24. Opinion on Performance Appraisal helps to win co-operation and team work.
(Q.No.24 Performance Appraisal helps to win co-operation and team work.)
Table 2.24- Showing the Performance Appraisal helps to win co-operation
and team work.
SL Parameter
Staff level
Workers level
Respondent
Percentag
o
1
Strongly agree
s
04
e
20
11
37
Agree
10
50
13
43
Neutral
03
15
00
00
Disagree
02
10
00
00
Strongly disagree
01
05
06
20
TOTAL
20
100
30
100
Graph .no.2.24- Showing response towards the Performance Appraisal

helps to win co-operation and team work.
Performance Appraisal helps to win co-operation and teamwork
20
St
ro
ng
ly
50
43
20
15
10
0
D
is
ag
re
e
37
Ag
re
e
Percentage
60
50
40
30
20
10
0
5
0
staf
workers
Parameters

staff level and 37% of workers level strongly agree that Performance Appraisal
helps to win co-operation and team work , 50% of respondent from staff level and
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43% of workers level agree, 15% of respondent from staff level neither agree nor
disagree,10% from staff disagree ,5% of staff and 20% of workers strongly disagree.
Q.NO.25. Do you consider Performance Appraisal as the only Method available with
the organization to evaluate the performance.
Table 2.25- Showing the Performance Appraisal as the only Method available
with the organization to evaluate the performance.
SL Parameter
Staff level
Workers level
Respondent
Percentag
Respondents
Percentage
o
1
Strongly agree
s
01
e
05
10
34
Agree
09
45
12
40
Neutral
03
15
00
00
Disagree
05
25
02
06
Strongly disagree
02
10
06
20
TOTAL
20
100
30
100
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Graph no.2.25 showing Method available with the organization to evaluate
the performance.
Di
sa
gr
ee
St
ro
ng
ly
Ag
re
e
Percentage
Method to evaluate the Performance

4540
50
34
40
25
20
30
15
10
20 5
6
10
0
0
staff
workers
Parameters
Interpretation : From above graph it is interpreted that , 5% of respondent from staff

level and 34% of workers level strongly agree that Performance Appraisal as the
only Method available with the organization to evaluate the performance. , 45% of
respondent from staff level and 40% of workers level agree, 15% of respondent from
staff level neither agree nor disagree,25% from staff and 6% of workers disagree ,
10% of staff and 20% of workers strongly disagree.
CHAPTER-4
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FINDINGS

FINDINGS
Findings act as the bases for the project carried out which will lead to
recommendations. It leads to the clear description about the views, opinion of the
respondents and what they opine about certain criteria . Here the findings are drafted
on the basis of the responses in the questionnaire.
Findings of the staff level:

To study and analyze the Performance Appraisal system at Apex Auto Ltd Auto
Ltd for different levels.
1. All the staff level employees are aware of the Performance Appraisal system in the
organisation and they are also aware of the appraisal Method followed in the
organisation.
2. Most of the employees from the staff level say that the timing of appraisal is
annually (i.e, 90%) and most of them are also aware of performance ratings
followed in the organisation (i.e, 90%).
3. All the staff level employees said that traditional system of Performance Appraisal is
used in the company and in that most of the respondents said that check-list Method
is used (i.e,90%)
4. Most of the employees said that a combination of quantitative outcome criteria,
qualitative outcome criteria, quantitative process criteria and qualitative process
criteria are considered during evaluating the performance.
5. Majority of the employees (i.e,75%) say that the chance is given by the appraiser to
discuss the views freely during the appraisal and (45%) of the employees said that
the appraisal is conducted by the immediate supervisor and all the employees agree
that the appraisal system provides a communication between the top-management
plans and business goals to lower level.
6. Majority of the employees (i.e,95%) said that they should get an opportunity for self
appraisal.
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To find the expectations of the appraise from the Performance Appraisal.
1. Most of the employees (i.e, 55%) expected criteria from the Performance Appraisal is
salary administration and benefits followed by most preferred criteria for
determination of promotion or transfer ,less preferred guide line for training plans
and least preferred decision on lay off.
To know about the reward system linkage to the Performance Appraisal.
1. As majority of the staff level employees strongly agree that appraisal system
motivates the employees as (95%) of employees say that rewards are linked to the
Performance Appraisal and the most kind of reward that motivates them is annual
performance award certificate followed by salary increase.
To know the satisfaction level of the Appraise.

1. Most of the staff level emplyess(i.e,55%) say that the most common error found
during Performance Appraisal system is central tendency.
2. The study reveals that most of the employees disagree that the existing Performance
Appraisal system highlights the low performance and no development support is
defined.
3. It was found that 95% of the staff level employees said that training program where
provided by the company to improve the performance where in both on the job
(i.e,90%) and off the job (i.e,10%) are provided and they agree that the training and
counselling session after the appraisal are satisfactory.
4. Most of the employees think that the main objective of Performance Appraisal is job
satisfaction (i.e,55%) and identifying training needs (i.e,50%) so 90% of the
employees are satisfied with the appraisal system as it does meet the above
objectives.
5. Most of the employees are satisfied with the appraisal system (i.e,60%).
To know the effectiveness of Performance Appraisal at different levels.
1. Majority of the employees said that the appraisal system leads to the improvement
in job performance (i.e,45%) and also agree that the Performance Appraisal
contributes to the achievement of organisational goals(i.e,70%).
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2. The study reveals that Performance Appraisal does help to identify strengths and
weakness of the employee (i.e,70%) and also helps to win co-operation and teamwork and (50%) of them say Performance Appraisal as the only Method available
with organisation to evaluate the performance.
Findings of the workers level.

To study and analyze the Performance Appraisal System at Apex Auto Ltd
Auto Ltd for different levels.
1. Most of the workers level employees are aware of the Performance Appraisal
system in the organisation(i.e,73%) and they are also aware of the appraisal
Method followed in the organisation(i.e,64%)
2. Most of the employees from the workers level say that the timing of appraisal is
monthly (i.e, 56%) and most of them are also aware of performance ratings
followed in the organisation (i.e, 77%).
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3. All the workers said that traditional system of Performance Appraisal is used in the
company and in that most of the respondents said that check-list Method is used
(i.e,93).
4. Most of the employees said that a combination of quantitative outcome criteria,
qualitative outcome criteria, quantitative process criteria and qualitative process
criteria are considered during evaluating the performance.
5. Majority of the employees (i.e,84%) say that the chance is given by the appraiser to
discuss the views freely during the appraisal and (76%) of the employees said that
the appraisal is conducted by the immediate supervisor and (90%) of the workers
agree that the appraisal system provides a communication between the topmanagement plans and business goals to lower level.
6. Majority of the employees (i.e,77%) said that they should get an opportunity for
self appraisal.
To find the expectations of the Appraise from the Performance Appraisal.

1. Most of the employees (i.e.,50%) expected criteria from the Performance Appraisal
is salary administration and benefits followed by most preferred criteria for
determination of promotion or transfer ,less preferred guide line for training plans
and least preferred decision on lay off.
To know about the reward system linkage to the Performance Appraisal.

1. As majority of the workers strongly agree that appraisal system motivates the
employees as (63%) of employees say that rewards are linked to the Performance
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Appraisal and the most kind of reward that motivates them is annual performance
award certificate followed by salary increase.
To know the satisfaction level of the Appraise.

1. Most of the staff level employees (i.e,35%) say that the most common error found
during Performance Appraisal system is central tendency.
2. The study reveals that most of the workers (i.e,37%) strongly agree that the existing
Performance Appraisal system highlights the low performance and no development
support is defined.
3. It was found that all the workers said training program where provided by the
company to improve the performance where in on the job is provided and they agree
that the training and counselling session after the appraisal are satisfactory.
4. Most of the workers think that the main objective of Performance Appraisal is job
satisfaction (i.e,40%) and increase in pay (i.e,37%) so 74% of the employees are
satisfied with the appraisal system as it does meet the above objectives.
5. Most of the employees are satisfied with the appraisal system (i.e,54%).
To know the effectiveness of Performance Appraisal at different levels.
1. Majority of the employees said that the appraisal system leads to the improvement in
job performance (i.e,60%) and also agree that the Performance Appraisal contributes to
the achievement of organisational goals(i.e,43%).
2. The study reveals that Performance Appraisal does help to identify strengths and
weakness of the employee (i.e,46%) and also helps to win co-operation and team-work
and (40%) of them say Performance Appraisal as the only Method available with
organisation to evaluate the performance.
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Observational study:
Other findings during the organisation study:
1. Training provided for the workers for the period of six months and for the staff
level probationary period is six months.
2. Total four shifts are followed in the organisation ,every week employees shifts
will be changing.
3. Monthly the HR department will monitor the attendance through biometric
attendance system.
4. To motivate the employees the organisation follows the schemes like
G.A Award Good Attendance Award
G.S Award- Good Suggestion Award
7 Star Award is given to the employees every month.
Birthday celebration of employees
Annual get together
Picnic
5. Only one bus is allotted from Dharwad to Belur which makes employees to
rush and makes them to feel frustrated.
6. As per the Factories Act 1948, the bonus of 8.33% should be given to the
employees. The Apex Auto Ltd Auto Ltd provides 25% of bonus to its
employees but the bonus is given to those who are withdrawing the salary of
more than 10 thousand .But for the year 2013 employees are given 20% of
bonus due to recession period.
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7. Every month 1.75% of amount is deducted from the salary to deposit in the
ESIC Scheme which helps their family members.
8. The company will not recruit the candidates of below 18 yrs of age.
9. The penalty is made to pay if employees abide by the companys safety norms.
CHAPTER-5
RECOMMENDATIONS
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RECOMMENDATIONS
Recommendations are things extracted from the findings with solutions which will be
beneficial to the company regarding various loopholes identified in the survey. It is
also a path for the retaining best talent within the organisation.
Recommendations for the staff level employees:

Most of the employees from the staff level are aware of the Performance Appraisal
system but they should also be made known about the benefits of conducting a
formal appraisal.
The timing of the appraisal is done annually for the staff level but it is
recommended that it can be conducted half-yearly because if there are any loop
holes they can be rectified.
Mostly the organisation is following the Traditional Method of appraisal both for
staff level and workers level and in that check list Method is followed. so the
company should strategically tryout adopting 360 degree appraisal Method first
starting from staff level and then can be applied to whole organisation based on the
response.
The major criteria which are taken into consideration for appraising are sales
volume, productivity, quality of the product and attendance for both staff and
workers level with these criteria other factors like knowledge, ability, skill,
behavioural efficiency and individual outcome can also be considered.
The Performance Appraisal is conducted for staff level through self appraisal and
the same is reviewed by the immediate supervisor but there is a misconception that
they have rating committee so this has to be clearly communicated to the employees
on the procedure followed.
The importance of Performance Appraisal is inculcated in different ways by the
appraises i.e., most of them perceived it as a only medium for hike in salary and
some additional benefits followed by determination of promotion. It has to be
emphasized that Performance Appraisal helps in career development as it provides
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an insight into strength and weakness of employees and also guidelines for training
plans.
As per the reward system that motivates the employees are salary increase, annual
performance award certificate, outstanding performance awards for both staff level
and workers level so these rewards should be followed by the organisation to
motivate them and to retain the talented employees.
Errors are common in any system but management should take necessary action to
reduce the error during assessesment i.e., training should be given to the appraisers
so that the appraising is not biased and is fair.
Employer opinion survey can be conducted in order to understand the satisfaction
level of employees regarding Performance Appraisal system.
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Recommendations for the workers level employees:
As compared to the staff level the workers are less aware of Performance
Appraisal system followed in the organisation so first of all awareness has to be
created by the Human Resources and Admin department and conduct appropriate
training.
The employees of staff level are aware of Performance Appraisal system But the
workers are to be made aware of what exact Method of appraisal is followed and
benefits of Performance Appraisal system.
The management and the appraisers should specify the exact timing of the
appraisal as most of the employees at workers level do not have an exact idea on
whether is is conducted monthly or annually so proper co-ordination has to be
done with the appraisers and plan out an Key Performance Areas and Key Result
Areas.
Training are provided by the organisation to improve the performance but it is
mostly on the job training given so off the job trainings like simulations,
vestibule, lectures by expertise can be given and also effectiveness of training
given should be measured.
The chance should be given by the appraiser to discuss their views freely during
review session especially for the workers level as this will indirectly benefit the
organisation to receive the views of the appraiser and make them more
responsible for their work.
The workers are appraised by the immediate supervisor even they should give
self-rating which would help them in analysing the factors that helped them to
reach the target and factors which hindered.
Mostly informal counselling is done in the company for both staff and workers
the HR department should take initiative to introduce formal counselling after the
appraisal.
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CHAPTER-6
CONCLUSION
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CONCLUSION
Human Resource (or personnel) management, in the sense of
getting things done through people, is an essential part of every managers
responsibility, but many organizations find it advantageous to establish a specialist
division to provide an expert service dedicated to ensuring that the human resource
function is performed efficiently. People are our most valuable asset which no
member of any senior management team would disagree with. Yet, the reality for
many organizations are that their people remain undervalued, under trained and
underutilized. Performance Appraisal is the process of assessing the performance and
progress of an employee or a group of employees on a given job and his / their
potential for future development. It consists of all formal procedures used in the
working organizations to evaluate personalities, contributions and potentials of
employees.
To conclude the topic A Study of Performance Appraisal System for different levels
at Apex Auto Ltd Auto Ltd following things can be summed up:
The Performance Appraisal is conducted for staff level through self appraisal and
the same is reviewed by the immediate supervisor but there is a misconception that
they have rating committee so this has to be clearly communicated to the employees
on the procedure followed.
The chance should be given by the appraiser to discuss their views freely during
review session especially for the workers level as this will indirectly benefit the
organisation to receive the views of the appraiser and make them more responsible
for their work.
The HR department should educate the shop floor employees regarding
Performance Appraisal System followed in the Organisation.
DVH-IMSR
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Bibliography
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BIBILIOGRAPHY
BOOKS:
1. K Aswathappa, Human Resource Management, 5th Ed., 2008, ISBN:
978000660205
2. P. Subba Rao, Essentials of Human Resource Management and Industrial
Relation,2nd ed., Himalaya Publishing House, Mumbai, 2008
3. T.V.Rao, Appraising & Developing Managerial Performance,2nd ed., Excel
Publication , New Delhi, 1992
COMPANY PUBLICATIONS:
1. Company brochures
WEBSITES:
1. www.apexautoltd.in
2. www.humanresource.com
3. www.hrcite.com
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ANNEXURE
Questionnaire
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Dear Sir/Madam,
I am Asha Pujar, pursuing MBA at Dr. Veerendra Hegde Institute of Management
Studies and Research, Dharwad. I am undertaking a project titled A Study on
Performance Appraisal System for different levels at Apex Auto Ltd Auto Ltd. I request
you to please co-operate and fill the questionnaires on your opinion to facilitate my study.
Your response is useful and crucial for my academic study, and will be used only for
academic purpose. I assure you that the valuable information will be kept confidential.
a. Name of Employee:
b. Employee NO:________
c. Designation : __________
d. Age :
20-30
30-40
40-50
Above 50
e. Gender:
Male
Female
f. Educational qualification
School level
ITI/PUC
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Diploma
Graduates/Professional
g. Marital Status :
Single
Married
h. How long have you been working in this company?
a. less than 1 yr
b. 1-3 yrs
c. 3-5yrs
d. 5-10yrs
e. above 10yrs
1. Are you aware of Performance Appraisal System at your organization.
A. Yes ( )
B. No ( )
2. Are you aware of Performance Appraisal Method followed in your

organization.
A. Yes ( )
B. No ( )
3. What is the Timing of Appraisals ?

A. Monthly ( )
B. Quarterly ( )
C. Half Yearly( )
D. Annual ( )
E. Anytime ( )
4. Are you aware of performance ratings?
A.Yes ( )
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B. No ( )
Page 137

5. Which Method of Performance Appraisal does the company use ?
A. Traditional Method ( )
B. Modern Method ( )
If Traditional Method then which of the following.

a. Essay Method
b. Comparison Method
c. Checklist Method
d. Critical incidence Method
e. Graphical rating scale
f. Force distribution Method
g. Field review Method
If Modern Method which of the following
a. MBO
b. 360 degree appraisal
c. Assessment centre
d. HRA (Human Resource Accounting Method)
6. What are the Performance Appraisal criteria used for appraising?

A. Quantitative outcome criteria (Sales volume, Sales price, Productivity,
Goal accomplishment rate) ( )
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B. Qualitative outcome criteria (Quality of product or service, Customer
satisfaction) ( )
C. Quantitative process criteria (Efficiency, Cost/expenses, Attendance) ( )
D. Qualitative process criteria (Judgment, Work attitude, Leadership,
Conduct /Trait)
()
7. Does the appraiser give you a chance to discuss your views freely during
the Appraisal?
A.Yes ( )
B. No ( )
8. Who conducts the Performance Appraisal?

A. Immediate supervisor ( )
B. Peer appraisal ( )
C. Rating committees ( )
D. Self-rating ( )
E. Appraisal by subordinates ( )
F. Combination of all /Any other kind of Combination ( )
9. Does the appraisal system provide a good communication between the topmanagement plans and business goals to staff below?
A. Yes ( )
B. No ( )
10. Do you think you should be given an opportunity to rate your own
performance?
A.Yes ( )
B. No ( )
11. What do you expect from a Performance Appraisal :

(Rank the options from 1 to 6; 1 being most preferred & 6 being least
preferred)
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Detail
Rank
Salary Administration and Benefits

Determination of promotion or transfer
Decision on layoff
Assistance in goal
Guideline for training Plan
An insight into your strengths and
weakness
12. Do you agree that the Performance Appraisal system motivates employees.
A. Strongly Agree ( )
B. Agree ( )
C . Neither Agree Nor Disagree ( )

D. Disagree ( )
E. Strongly Disagree ( )
13. Do you feel that the rewards are linked to the Performance Appraisal.
A. Yes ( )
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B. No( )
Page 140

If yes,
A. Salary increase
B. Promotion to higher position
C. Annual performance and reward certificate
D. Outstanding certificate
E. Appraisal letter
F. Any other specify.
14. What are the common errors do you find during the Performance Appraisal.
A. Leniency
E. Central tendency
B. Halo error
C. Rater effect
D. Perceptual effect
15. In the existing Performance Appraisal System is it that low performance is
highlighted but no development support is defined.
C .Neither Agree Nor Disagree ( )
B. Agree ( )
D. Disagree ( )
16. Are there any training program provided by the company to improve the
performance.
A. Yes ( )
B. No ( )
If yes,
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a. On the job
b. Off the job
17. Is the training and counseling session after the appraisal satisfactory?
B. Agree ( )

D. Disagree ( )
18. What do you think is the objective of the Performance Appraisal?

A.
B.
C.
D.
Promotion
Assessing training needs
Increase in pay
Job satisfaction
19. Are you satisfied with the appraisal system and does it meet the above
objectives.
A.Yes ( )
B.No ( )
20. Rank the level of satisfaction on the present appraisal system.

A. Highly Satisfied ( )
B. Satisfied ( )
C . Neither satisfied nor dissatisfied ( )

D. Dissatisfied ( )
E. Highly Dissatisfied ( )
21. Does the Performance Appraisal help to improve job performance.

A. Not much
B. Little
C. Some what
D. Much
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22. Do you agree that the Appraisal system contributes to the achievement of
organizational goals?
C . Neither Agree nor Disagree ( )
B. Agree ( )
D. Strongly Disagree ( )
E. Disagree ( )
23. Do you agree that the Appraisal system able to show the areas in which a
person needs improvement and also helps to identify the strength and weakness
of the employee.
B. Agree ( )
D. Strongly disagree ( )
E. Disagree ( )
24. Do you agree that the Performance Appraisal helps to win co-operation and
team work.
B. Agree ( )
D. Strongly disagree ( )
E. Disagree ( )
25. Do you consider Performance Appraisal as the only Method available with
the organization to evaluate the performance
individual
B. Agree ( )
D. Disagree ( )
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26. Any suggestion to improve the appraisal system in your organization.
Date:
Place:
Signature:
Thank you
DVH-IMSR
Page 144

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A STUDY ON PERFORMANCE APPRAISAL FOR

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Adhering to all applicable environmental legislation and regulation.

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Track 2520 frame 1

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Precision laser cutting reduces the possibility of contamination owing to lack of

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Robotic Welding is the use of mechanized programmable tools (Robots), which

SHW Machining Facilities: