EXECUTIVE SUMMARY

The importance of personnel management is being increasingly realized

in industrial and industrial organization both In India and abroad. This

realization has come about because of increasing complexity of the task

of managers and administrators. So far the personnel function was

confined to recruitment, salary administration and industrial relations. It

was regarded as necessary evil. However, organizations today have

realized the human resources as most valuable than any other resource

and therefore proper maintenance and development is needed of them.

Management can tremendously help the organizations to maximize the

utilization of other resources.

One step forward in this direction is the proper maintenance of

performance appraisal system in an organization. Performance appraisal

is a step where management finds out how effective it has been hiring

and placing an employee. The appraisal plans serves as a basis for

counseling the employees about their strengths and weaknesses, for

0
improving the productivity, efficiency and for enhancing employee

relations through development of mutual confidence among them.

The basic need of the study is to analyze how far the performance

appraisal in the organization has been successful in the assessing the

effectiveness and efficiency of the employees and to what extend it has

helped in linking professionalism and commitment to the organization.

With this objective the research is undertaken.

1
TABLE OF CONTENTS

1. Executive Summary

2. Company Profile

3. A Journey from YMEL to YMIPL

4. TVS’s Philosophy

5. Mission of the Company

6. Wage and Salary Administration

7. Environment Policy

8. Functions of HR Department

9. Objective and Scope of the Study

10.Research Methodology

11.Introduction to Performance Appraisal

12.Study of the Appraisal system in the organization

13.Analysis of data and conclusion

14.Major Findings

15.Recommendation

16.Bibliography

2
CHAPTER -I

3
 COMPANY PROFILE

COMPANY PROFILE

TVS Motor Company is the third largest two-wheeler manufacturer in India, with a
revenue of 15129 Cr INR (2017-18). The company has an annual production capacity of
4 million 2 wheelers & 120,000 3 wheelers.

TVS Group spans across industries like Automobile, Aviation, Education, Electronics,
Energy, Finance, Housing, Insurance, Investment, Logistics, Service and Textiles.

Has over 90 Companies under the umbrella.

TVS Motor Company Ltd (TVS Motor), a member of the TVS Group (Revenue around
INR. 40,000 Cr ), is the largest company of the group in terms of size and turnover.

A Vehicle for Everyone

TVS Motor currently manufactures a wide range of two-wheelers. Take your pick from
mopeds to racing inspired motorcycles.

Motorcycles: (Apache Series, Victor, StaR City+, Sport, Max4R)

Scooters: (Ntorq, Jupiter, Wego, Scooty Zest 110, Scooty Pep +)
Mopeds: (XL 100, XL 100 Comfort and XL 100 Heavy Duty)

Manufacturing Locations

4
The company has four manufacturing plants, three located in India (Hosur in Tamil Nadu,
Mysore in Karnataka and Nalagarh in Himachal Pradesh) and one in Indonesia at
Karawang.
Innovation at the Helm
TVS Motor's strength lies in design and development of new products. We at TVS deliver
total customer satisfaction by anticipating customer need and presenting quality vehicles
at the right time and at the right price. The customer and his everchanging need is our
continuous source of inspiration. We have proved time and again that this sense of
responsiveness along with a penchant for quality is a winning formula. The company has
many firsts to its credit including the fact that we launched seven vehicles on the same
day - a rare feat in Automotive history.

Inspiring Millions of Smiles

TVS has always stood for innovative, easy-to-handle, and environment-friendly products,
backed by reliable customer service.

More than 33 million customers have bought a TVS product to date. TVS products give
you only reasons to smile

TVS Motor Company - Mission

We are committed to being a highly profitable, socially responsible, and leading

manufacturer of high value for money, environmentally friendly, lifetime personal
transportation products under the TVS brand, for customers predominantly in Asian
markets and to provide fulfillment and prosperity for employees, dealers, and suppliers.

5
Vision Statement

Driven by the customer

TVS Motor will be responsive to customer requirements consonant with its core
competence and profitability. TVS Motor will provide total customer satisfaction by
giving the customer the right product, at the right price, at the right time.
The Industry Leader

TVS Motor will be one among the top two two-wheeler manufacturers in India and one
among the top five two-wheeler manufacturers in Asia.
Global overview

TVS Motor will have profitable operations overseas especially in Asian markets,
capitalizing on the expertise developed in the areas of manufacturing, technology and
marketing. The thrust will be to achieve a significant share for international business in
the total turnover.
At the cutting edge

TVS Motor will hone and sustain its cutting edge of technology by constant
benchmarking against international leaders.
Committed to Total Quality

TVS Motor is committed to achieving a self-reviewing organization in perpetuity by

adopting TQM as a way of life. TVS Motor believes in the importance of the process.
People and projects will be evaluated both by their end results and the process adopted.
The Human Factor

TVS Motor believes that people make an organization and that its well-being is
dependent on the commitment and growth of its people. There will be a sustained effort
through systematic training and planning career growth to develop employees' talents and
enhance job satisfaction. TVS Motor will create an enabling ambience where the
maximum self-actualisation of every employee is achieved. TVS Motor will support and

6
encourage the process of self-renewal in all its employees and nurture their sense of self-
worth.
Responsible Corporate Citizen

TVS Motor firmly believes in the integration of Safety, Health and Environmental
aspects with all business activities and ensures the protection of employees and
environment including development of surrounding communities. TVS Motor strives for
long-term relationships of mutual trust and interdependence with its customers,
employees, dealers, and suppliers.

Innovation in Motion

We have always been at the forefront of bringing new and relevant technology. We stay
ahead of the curve when it comes to meeting customer expectations.
All our technological innovations are attributed to meeting customer expectations from
our constant interactions with them. That's where the story begins.
Back at our R & D lab, a small idea gets transformed into a machine - one that will
completely fulfill the needs of the market/customer and that is sure to exceed
expectations.
While the primary focus is on superior handling and experience, we also keep in mind the
style and other aspects that make our Vehicles one of a kind/feature rich.
Eco Leadership

Green Bikes. Greener Tomorrow.

Technological Innovations must support growing concerns on global warming and

pollution. At TVS Motor, we have always been the pioneers in bringing Cleaner Greener
technology to two-wheelers. TVS Motor Company was the first to use a catalytic
converter in its bike, in India way back in 1996 - the TVS Shogun.

7
All our vehicles are 85% recyclable. Our vehicles comply with world standards of
recyclability. This is of utmost importance in a scenario where countries like Japan and
Germany have laws on the recyclability of the vehicle.

New Age fuels are a very exciting area for us, and we have started exploring into this
with the launch of the electric scooter and the three-wheelers available in a factory - fitted
CNG and LPG options.

8
 Scope and

Objective of study

9
OBJECTIVES OF THE STUDY

To critically analyze the performance appraisal system in TVS Motors

India Pvt. Ltd.

To gain familiarity with the organization’s environment and the work

culture existing in the organization.

The purpose of the study is to evaluate the impact of performance

appraisal system carried out in the organization.

It is to view that how the present appraisal system has contributed

towards the efficiency and effectiveness of the employees in the

organization.

The objective of the study is also to feel the pulse of the employee’s

views and their suggestions.

10
CHAPTER- II

11
 RESEARCH METHODOLOGY

Research in common parlance refers to research for knowledge or it can be

defined as a research methodology is a way to systematically solve the

research problem. It may be understood as a science of studying how

research is done scientifically. In this we study various steps that are

generally adopted by a researcher in studying research problem along

with the logic behind them.

In fact, research is an art of investigation. It is academic activity and as

such the term should be used in a technical sense.

It comprises defining and redefining problems, formulating hypothesis

or suggested solutions; collecting, organizing and evaluating data;

making deductions and reaching conclusions either in the form of

solutions towards the concerned problem or in certain generalizations for

some theoretical formulation.

12
Research, is thus, an original contribution to the existing stock of

knowledge making for its advancement. It is the pursuit of truth with the

help of study, observation, comparisons and experiment.

It refers to the systematic method consisting of enunciating the problem,

formulating a hypothesis, collecting the facts of data, analyzing the facts

and reaching certain conclusions either in the form of solutions towards

the concerned problem or in certain generalizations for some theoretical

formulation.

The purpose of research is to discover answers to questions through the

application of scientific procedures. The main aim of research is to find

out which is hidden and which has not been discovered yet.

Research also defines as the manipulations of things, concepts or

symbols for the purpose of generalizing to extend, correct or verify

knowledge.

It is necessary for the researcher to know not only the research

methods/techniques but also the methodology. Researchers not only need

13
to know how to develop certain indices or tests, how to calculate mean,

the median, or the standard deviation or chi-square, how to apply

particular research techniques, but they also need to know which of these

methods or techniques, are relevant and which are not, and what would

they mean and indicate and why.

Researcher also needs to understand the assumptions underlying various

techniques and they need to know the criteria by which they can decide

that certain techniques and procedures will be applicable to certain

problems and others will be not. All this means that it is necessary for

the researcher to design methodology for the problem as the same may

differ from the problem to problem.

In research, scientist has to expose the research decisions to evaluation

before they are implemented. Need to specify very clearly and precisely

what decisions is selected and why it is selected so that others can

evaluate them also.

14
Form above, Research Methodology has many dimensions and research

methods do constitute a part of the research methodology. It is wider

than that of research methods.

Thus, when we talk of research methodology we not only talk of the

methods but also consider the logic behind the methods we use in the

context of our research study and explain why we are using a particular

method or technique and why we are not using others so that research

results are capable of being evaluated either by the researcher or by the

others

A research methodology concerning a research problem or study

includes:

 A research study undertaken.

 Definition of research problem (how).

 Formulation of hypothesis development (in what way and how).

 Data collection (what data).

 Adoption of particular method (what method).

15
  Particular technique of analyzing data that is used in research

(why).

 Interpretation and recommendation given for the research problem.

RESEARCH DESIGN

DESCRIPTIVE

These are studies concerned with describing the characteristics of a

particular individual or a group.

It helps a researcher to define clearly what, he/she wants to measure and

must find adequate methods for measuring it along with a clear of

definition of “population” under study.

It helps in defining the objectives to ensure that the data collection is

relevant.

SAMPLE DESIGN

It is definite plan for obtaining a sample from a given sample. It refers to

the technique the researcher would adopt in selecting an item from the

sample.

16
 While developing a sample design, the researcher must pay attention to

the universe, sample design, place boundary, and time boundary.

METHODLOGY

The methodology includes personal interaction with workers through

questionnaire, interviewing and observation.

A sample questionnaire was drawn up detailing about the

survey that was carried out in TVS, Uttarakhand of convenience and

correction were incorporated in the questionnaire wherever required.

SELECTION OF SAMPLE SIZE AND COMPOSITION

The profile of the respondents was based on the age group, tenure of the

job, job experiences, challenges faced and job satisfaction, etc.

DATA COLLECTION

It is one of the methodologies of conducting research. It can be described

as a collection of data, which is nothing but the raw material for analysis,

which when processed, generates useful information to take corrective

decisions.Our database constitutes of primary data, which are collected

afresh, and for the first time and thus happens to be original in character.

TOOLS FOR DATA COLLECTION

17
 The study based on information and feedback given by the respondents.

This is done with the getting information from the documents and files,

feedback asked along with the questionnaire, personal interaction.

The primary preparation is from the different books.

 Questionnaire

Questionnaire: It is one of the important sources of collecting

information. A list of questionnaire prepared for the specific subject as

the name indicates there is a set of selected questions whose answer the

investigator seeks from respondents in order to get knowledge about the

matter. Structured questionnaire is prepared with the data concerns and

guidance of the management of company. The questionnaire was used

for different category mentioned.

RESEARCH METHODOLOGY

Keeping the objective of the study in mind carries out the research. For

the purpose of the study data was collected from:

1. Primary Source

2. Secondary Source

Primary Source includes personal interviews and filling up of

questionnaire by the employees of the company.

18
Secondary source of data was collected through previous years research

files and employees handbook and company’s annual reports.

Sample Size:

The sample size was 50 employees of Uttarakhand plant of the

company, most of the workers and few supervisors.

METHODOLOGY INVOLVED (research):

The methodology includes personal interaction with workers through

questionnaire, interviewing and observation.
A sample questionnaire was drawn to achieve the objective and the workers
were asked to fill it.

SAMPLING METHODS (PLAN) AND SAMPLE SIZE

It is definite plan for obtaining a sample from a given sample. It refers to the
technique the researcher would adopt in selecting an item from the sample.
While developing a sample design, the researcher must pay attention to the
universe, sample design, place boundary, and time boundary.

Type of Universe: set of objects: - finite

Sample: workers of TVS INDIA PVT LTD,Uttarakhan

Sample Size: The total of sample size covered is 50
Sampling Method – Convenience & Random Sampling
(Survey Sampling)

19
 METHODS OF DATA PROCESSING AND TOOLS &

TECHNIQUES ANALYSIS

The entire data was fed in the Excel sheet and the statistics was calculated.
Simple statistics like Tally Method, Counting, Tabulations and graphs are
used. Data Analysis is done using Graphical Representation on Percentage
basis.

ANALYSIS AND INTERPRETATION OF THE DATA

The analysis of data requires a number of closely related operations such as

establishment of categories. The application of these categories to raw data
through coding, tabulations and then drawing statistical inferences. One
should always try to classify data into some purposeful and usable
categories.

EXECUTION OF THE PROJECT

Execution of the project is a very important step in the research process. The
researcher of the project should see that his project is executed in a
systematic manner and in time, for example if there is a survey to be
conducted by means of a structured questionnaire data can be readily
machine processed and more important data should be properly coded.
If the data is to be collected through interviews, then proper arrangements
should be made for proper selection and training of the interviewers
Analysis of data basically requires, coding, editing and tabulation of the data
collected.

CODING –

20
Coding operation usually involves the transformation of data into various
symbols that can be tabulated and counted.

EDITING -

Editing is a procedure that improves the quality of a data for coding.

TABULATION –

Tabulation is a part of technical procedure wherein; the classified data are

put in form of tables.
Analysis work is generally based on computation of various percentages

and coefficients by applying various well-defined statistical formulae.

21
CHAPTER-III

22
 An

Introduction to

Performance

Appraisal

23
History of Performance Appraisal System

Employee appraisal techniques are said to have used for the first time

during the first world war, when at the instance of Walter Dill Scott, the

US army adopted the man to man rating system for evaluation of

military personnel. During 1920-30 period, relational wage structures for

hourly paid workers was adopted in industrial units. Under this system,

the policy of giving grades wage increments on the basis of merit was

accepted. These early employed plans were called “Merit rating

programs” which continued to be so called up to mid-50s. By then most

of these plans were of the rating scale type, where emphasis was given to

factors, degrees and points. In the early 50s however, attention begin to

be devoted to performance appraisal of technical, professional and

managerial personnel. Since then, as a result of the experiments and a

great deal of study, the philosophy of performance appraisal has

undergone a tremendous change. Consequently the change has also taken

place in the terminology used. Now the older phrase “Merit rating” is

largely restricted to the rating of hourly paid employees and is frequently

used in developing criteria for salary administration, promotions,

transfers, etc. the later phrase “Personnel Appraisal” place emphasis on

24
 the development of the individual as and widely used to evaluate,

technical, professional and managerial personnel.

Important features of Performance Appraisal:

It is a systematic description of an employee’s job relevant strengths and

weaknesses.

It helps in determining how well an employee is performing the job and

establishes a plan for improvement.

Appraisals are arranged periodically according to a definite plan.

It is a continuous process in every large-scale organization.

Need of Performance Appraisal

 It is to provide information about the performance ranks on the

basis of which decisions regarding salary fixations, confirmation,

promotion, transfers and demotions are taken.

 It provides information about the level of achievement and

behaviour of subordinates. This information helps to review the

performance of subordinates, rectifying performance deficiencies and to

set new standards of work if necessary.

 It provides information that helps to counsel the subordinates.

25
It also provides information to diagnose deficiency in employee regarding

skills, knowledge and determining the training needs.

 It is to prevent grievances and in disciplinary activities

Contents of Performance Appraisal

Every organization has to decide upon the content to be appraised before

program is approved. Generally the content to be appraised is

determined on the basis of the job analysis. Certain contents to be

appraised in a job are as mentioned below:

 Regularity of attendance

 Self expression- written and oral

 Ability to work with others

 Leadership styles and abilities

 Initiative

 Technical skills

 Technical ability/knowledge

 Ability to grasp new things

 Ability to reason

26
  Originality and resourcefulness

 Creative skills

 Area of interest

 Area of suitability

 Judgment skills

 Integrity

 Capability for assuming responsibility

 Level of acceptance by subordinates

 Honesty and sincerity

 Thoroughness in job and organizational knowledge

 Knowledge of systems and procedures

Quality of suggestions offered for improvement

27
METHODS OF PERFORMANCE APPRAISAL

TRADITIONAL METHODS MODERN METHODS

Graphic rating scales Behaviourally anchored rating

scales (BARS)

Ranking method Assessment center

Paired comparison method Human resource accounting

Forced distribution method Management by objectives

Management by objectives (MBO)

Checklist method: Psychological appraisal

Simple and weighted

Incident method

Essay or free from appraisal

Group appraisal

Confidential reports

28
 Limitations of an Appraisal System

The major problems in the Appraisal system are:

The ‘Halo effect’

The ‘Halo effect’ is a tendency to lead the assessment of individual one-

trait influences the evaluation of that person on the other specific traits.

There is this effect in appraisal when the appraiser assigns the same

rating to all traits regardless of an employee’s actual performance on the

traits.

Leniency or strictness tendency or constant errors

Every evaluator has his own value system that acts as a standard against

which he makes appraisals. The leniency bias crops when to be liberal in

their ratings by assigning high rates considerably. Such ratings do not

serve any purpose.

Central tendency problem

It is the most commonly found error. It assigns average rating to all

employees with a view to avoid commitment when the rater is in doubt

or has inadequate information or lack of knowledge about the behaviour

of the employee.

29
 Similarity errors

This type of error occurs when evaluators rates other people in the same

way he perceives himself. For e.g. the evaluator who perceives himself

as aggressive may evaluate others by looking for aggressiveness. Those

who show this characteristic may be benefited while other may suffer.

Personal prejudice

If the evaluator likes or dislikes any employee or a group then he may

rate him rate him accordingly and therefore the purpose of appraisal

won’t be achieved.

30
 STUDY OF PERFORMANCE APPRAISAL IN THE

ORGANIZATION

PERFORMANCE AND POTENTIAL DEVELOPMENT SYSTEM

(PPDS PHILOSOPHY)

PPDS is based on the following philosophy and premises.

Performance appraisal is the most crucial element of the overall process

of performance planning both at organizational level and at level i.e.

between the appraiser and appraisee.

Achievement of results by itself is only half the picture unless the

appraisal is benched marked against the appraisee’s contribution to the

company.

The process of achieving results is as important as the achievements

themselves to keep in focus both the short term and the long term costs

and benefits.

Unleashing the human potential in any collaborative endeavour rests on

the process of opening opportunities, providing challenges, involvement,

continuing feedback and guidance. This, however, must be in

31
 conjunction with the assumption of responsibility for development and

growth by the individual himself.

PERFORMANCE REVIEW AND POTENTIAL ASSESSMENT

1. All confirmed their designated appraiser as at the end of the financial

year would appraise employees.

2.Where an employee has worked under two or more officers in any

financial year, the last officer subject to the minimum services under the

appraiser being three months will do the appraisal. Otherwise, the previous

reporting officer will do the appraisal. Where the previous reporting officer

has left the service of the company and the appraisee-appraiser relationship

is less than three months, the appraisal will be done jointly by the current

reporting officer and his superior.

Performance review is a joint process between the appraisee and the

appraiser. This joint process will also focus on the emerging training

needs and development plans.

PERFORMANCE COUNSELING

In the above context, the role of performance feedback and counseling is

the most crucial component of the appraisal process in enhancing the

effectiveness of the total exercise for triggering higher levels of

32
performance. It is therefore envisaged that the performance reviewed will

not be complete until and unless counseling has taken place. The appraiser

and appraisee may record their reaction to the counseling process, if they

wish so.

PERFORMANCE OBJECTIVES

The climate of sharing arrived in performance counseling will be used

for at least tentatively identifying the, next year’s performance

objectives, these objectives however may be revisited and fine tuned in

case of delayed finalisation business plans or any other factor

subsequently necessitates so. This must be followed by at least one mid-

year review.

To distinguish performance objectives from the various activities being

carried out by an individual during the course of his work, it is necessary

that these objectives be restricted to a maximum of five.

To assist managers, a sample list of indicators on the basis of which

these objectives should be firmed up in various functions is being

enclosed in Annexure. This list is only illustrative and not exhaustive.

Nor is it applicable everywhere. Identification of objectives for each

position will take in to account the specific nature of the job,

33
performance expectations and so on. Care must be taken to include

atleast one performance objective should focus on some innovative

effort, for e.g. modifying the system/ process and the like.

PERFORMANCE RATING

Performance rating will be done on the following scale:

VERY GOOD-A

The employee has far exceeded acceptable levels of performance with

excellence and creativity. His contribution to the company far exceeds

targets / expectations and such an employee is a very valuable asset to

the company.

GOOD –B

The employee generally exceeds the acceptable levels of performance.

His contribution generally exceeds targets/ expectations. Such an

employee contributes substantially to the company.

ACCEPTABLE –B

The employee meets acceptable levels of performance. His contributions

meet expectations but needs occasional guidance/follow up. Such an

employee contributes reasonably to the company.

34
BARELY ACCEPTABLE - C+

The employee needs urgent improvements to achieve acceptable levels

of performance. Work is often accomplished by unduly relying upon

others to solve problems and requires considerable guidance, supervision

and follows up.

NOT ACCEPTABLE –C

The employee slips despite guidance and follow up. He is clearly a

burden on the company in the sense that his contribution does not justify

his cost to the company.

POTENTIAL ASSESSMENT

Potential assessment will be based on certain key competencies relevant

to the appraisee’s present job and the likely higher responsibilities he

may occupy. These competencies are as follows.

Even though all competencies may not be relevant for all

positions/functions and wherever the appraiser is that any particular

competency is not relevant, he may choose not to appraise on the same.

The appraiser may also add any other relevant competencies not listed.

The appraiser should rate appraisee in terms of high/medium /low and

should also give specific reasons for such ratings.

35
Potential assessment can be made through the listed points:-

 Achievement Orientation

 Leadership /man-management ability

 Decisiveness

 Developing others

 Team work and networking

 Optimism

 Pro-action / initiative

 Listening skills

 Presentation skills

 Striving for learning

 Analytical Ability

 Customer orientation

36
SAMPLE INDICATORS FOR DEVELOPING PERFORMANCE

OBJECTIVES

Marketing

 Sales quantity

 Extra/ shortfall in contribution.

 Revenue realization in average no. of days.

 Hit rate (conversion of prospects into orders)

 Territory / channel development.

Services:

 Customer complain satisfaction ratio.

 Response time.

 Return ratio of defects rectified in field.

 Service camps

 Mechanical training

Production

 Quantity

 Rejection quantity / cost percentage.

37
  Manpower utilization per equipment /product.

 Material utilization.

 Delivery schedules.

 First time pass rate.

HR/ IR:

 Response time for services /facilities rendered.

 Man hour lost due to unrest /work stoppage.

 Labour cost

 Absenteeism/ discipline/ turnover.

 Statutory compliances.

Finance:

 Response time and error rate in services rendered.

 Statutory compliances.

 Accounts closing schedule.

 Budget formulation / adherence.

 Timely MIS

 Funds management- cost of procurement, funds availability.

38
  Tax saving and planning

 Audit checks /compliances

R & D:

 No. of ideas generated /converted based on feedback /own ideas.

 Value engineering – saving made.

 Prototype /product development

 Patents applied.

 Documentation

Quality:

 Quality cost including manpower.

 Defect rate in passed quality

 Warranty cost

 Gauges /instruments calibration

 New system / process development for better quality

 Turn out rate for incoming quality inspection.

Maintenance:

 Machine down – time percentage.

39
  Average turnout time.

 Adherence to schedule.

 Defect rate attributable to poor maintenance.

 Maintenance cost including spares inventory.

Legal:

 Percentage cases lost.

 No. of litigations pending

 Legal payouts

 Process improvement / monitoring for reducing the above.

Security:

 Response time

 Theft / pilferage control

 Intelligence sources developed

 Gate movement control

 Night round frequency

40
Secretarial:

 Response time error rate in typing / word processing, filling,

telecommunication, information retrieval etc.

 New software packages learnt.

 Percentage rate of independent correspondence.

 Executive time management.

General:

 Cost reduction percentage.

 Succession schedule.

 Saving process improvements / innovation.

41
Analysis of Data

42
ANALYSIS OF DATA AND FINDINGS OF THE STUDY

A survey was conducted among a sample size of 50 workers. The

objective of the study was to highlight the performance appraisal system

of the company and the feedback of the employees regarding it. The

findings of the survey are as follows:

Ques.-1 Are you aware of the performance appraisal system being

carried out by the company?

Analysis:

The survey brought into light that the awareness level of the

43
 employees towards the appraisal policy was low:

%
aware
40%
not aware

60%

Ques.-2 According to you, which is the most important factor among

the following in the performance appraisal system?

Analysis:

40% agreed on productivity

30% believed quality of the output

20% believed attendance

44
 10% punctuality

40%
30%

20%

10% quality
attendance
punctuality
output

Ques.-3 Are the attitudinal factors desire to learn new techniques, skills

and practices, cooperation with others, contribution of new ideas,

saving consciousness; mentioned in your format sufficient for

judging your performance ?

Analysis:

45
 20%
insufficient
80%

sufficient

0% 10% 20% 30% 40% 50% 60% 70% 80%

Ques-4. Do you think the performance appraisal system adopted is

biased in any way ?

Analysis:

90% disagreed

10% agreed

46
 agreed
disagreed

10%

90%

Ques.-5 If you were being positively appraised, which recommendation

do you personally identify with?

Analysis:

The following diagrams elucidate, which recommendation the

employees have identified:

47
 promotion
special increment
annual increment

30%
60%

10%

Ques.-6 Is the performance appraisal sheet shown to you or discussed

with you?

Analysis:

35% say it is shown

65% say it is not shown

48
 70%

60%
65%
50%

40%
35%
30%

20%

10%

0%

shown not shown

Ques.-7 Do you think performance appraisal should have negative

recommendation, if yes then which one of the following:

Analysis:

50% of the workers were in favour and 50% were against it:

50% say increment should be stopped and the rest 50% say it

49
 should not be .

50% 50% 50%

40%
30%
20%
10%
0%

favour disfavour

Ques.-8 In your opinion your performance should be appraised after

how much time?

Analysis:

Nearly most of the workers in favour of quarterly appraisal in the

organization.

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 Ques.-9 Are you satisfied with your performance appraisal?

Analysis:

Most of the workers were found dissatisfied with their appraisals.

20%
satisfied
80%

dissatisfied
0% 10% 20% 30% 40% 50% 60% 70% 80%

ASSUMPTIONS

While conducting the studies over this topic certain assumptions were

there:

The data collected from secondary sources such as annual reports of the

company are correct and reliable.

51
The data collected through conducting of structured personal interviews

and questionnaires is reliable because whole of the analysis and

interpretations are drawn from them.

No manipulations are done on the part of respondents while filling up of

schedules.

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Recommendations

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 RECOMMENDATIONS

After analyzing the collected data, the following recommendations were

made to improve the present performance review scenario in the

organization.

 The performance appraisal system should be more performance

oriented.

 Quarterly assessment of individuals should be done instead of

yearly.

 Individual should be informed about the actual criteria on the basis

of which his work potential assessed.

 The appraisal system should provide two-way communication

between the assessor and the assessee.

 The salary structure of the employees should be revised timely as

per the performance s.

 It should be more transparent in its working.

 Efforts should be made to reduce the chances of biasness.

 An employee’s appraisal should be discussed with him in order to

remove his weaknesses.

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 The HR policies should be clear to all employees i.e. the policies

could be more result oriented in approach.

 There should be uniformity of appraisal process in all departments.

 The employee’s interest should be taken in account while allocating

the work department to him.

 Data and information, which an employee enters in the appraisal

form, should be correct and authentic.

 Employee should take the entire discussion of feedback session

positively and look at the opportunity to improve.

 Prior to feedback and counseling session the manager should

remember that the performance appraisal is the most important

thing for the employee.

 Appraisal system also gives the manager an opportunity to get a

constructive feedback of their own performances from their team

members.

 The managers should not delay the discussions as it may lose value.

 The results of the performance rather than the personality traits

should be given due weight.

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 The existence of an atmosphere of confidence and trust should

prevail between the supervisor and employee.

 The supervisor should analyze the weaknesses and strengths of an

employee and advice him to take corrective measures.

 The appraisal program should be less time consuming and costly.

 It should be used as a motivational tool.

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Bibliography

57
BIBLIOGRAPHY

Aswathappa, “Human Resource and Personnel Management”.

EYMIL Report Magazines.

Flippo B.Edwin, “Personnel Management”.

Hand Book of Managers, “Escorts Motors India Ltd”.

Mamoria C.B., “Personnel Management”.Flippo B.Edwin, “Personnel

Management

Rao P.Subba, “Essentials of Human Resource Management and

Industrial Relations”.

REFERENCE BOOKS:

Kothari C.R ; “Research Methodology”; New Age International (P)

Ltd ; New Delhi ; 2005

WEBSITES REFERRED

www.wikipedia.org

www.encyclopedia.com

SEARCH ENGINES

www.google.com

www.yahoo.com

The above references taken are the key source of information that helped me
during the completion of this project report.

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 THANK YOU !!!

59
Annexure

60
 QUESTIONNAIRE

Q-1 Are you aware of the performance appraisal system being carried

out by the company?

Yes No

Q-2 According to you, which is the most important factor among the

following in the performance appraisal system?

Productivity/Output

Punctuality

Attendance

Quality of output

Q-3 Are the attitudinal factors desire to learn new techniques, skills

and practices, cooperation with others, contribution of new ideas,

saving consciousness; mentioned in your format sufficient for

judging your performance ?

Yes No (if no than what other factors are

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 to be included please mention)

Q-4 Do you think the performance appraisal system adopted is biased

in any way ?

Yes No

Q-5 If you were being positively appraised, which recommendation

do you personally identify with?

Special Increment

Annual Increment

Promotion

Q-6 Is the performance appraisal sheet shown to you or discussed

with you?

Yes No

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Q-7 Do you think performance appraisal should have negative

recommendation, if yes then which one of the following:

Yes No

Increment being stopped

Promotion being stopped

Demotion

Transfer

Separation

Q-8 In your opinion your performance should be reviewed:

Quarterly

Half-yearly

Annually

Q-9 Are you Satisfied with your performance appraisal?

Satisfied

Dissatisfied

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