A STUDY ON PERFORMANCE APPRAISAL (SUMMER PROJECT REPORT) SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE

OF BACHELOR IN BUSSINESS ADMINSTRATION

BY PRIYANKABHATIA BBA/4553/08 DEPARTMENT OF MANAGEMENT BIT NOIDA CAMPUS

BIRLA INSTITUTE OF TECHNOLOGY (Deemed University u/s of UGC Act, 1956 Mesra, Ranchi, Jharkhand)

PREFACE
With the rapidly changing technological, socio- economic and politico-legal environment and the trend towards globalisation of business and industry, effective management of human resource has become very challenging job. There is no denying that fact that human element is at centre stage in all economic activities. No organisation can think of viability of operations and effectiveness without efficient utilisation of human resources. This requires the present day managers to be deeply concerned with the performance of human resource management functions such as human resource planning, matching human resource with the jobs, placement, promotion, training and development, appraisal, maintenance and motivation of human resources. A study on performance appraisal is a modest attempt to present a comprehensive treatment of concept, objectives, functions, methods and techniques of performance management in concern with performance appraisal of modern organisations. In fact this project is an amalgamation of my thought and experiences and those of various scholars, human resource professionals, my teachers and all the people who shared their knowledge with me.

Priyanka Bhatia

ACKNOWLEDGEMENT
I would like to thank my family, especially my sister Dr Deepti Bhatia for her unconditional love and support all throughout my journey of life. No words or material possessions can express the gratitude I have towards my parents for the support and motivation that they have offered me to purse my educations. I m thankful to my school for it plays an important role in what I am today and all my teachers who have guided me from basic schooling days to my college. I am thankful to my mentor Mr B.K Jha for his invaluable guidance, suggestions and constant encouragement which has helped me complete my project. I m grateful to Mr. Kumar Nagmani (Manager HR&Admin) of Sumi Motherson Innovative Engineering limited, noida for giving me an opportunity to do my practical industrial training and invaluable guidance which helped me complete my project with understanding. A special note of thanks to all the people who have shared their knowledge and cooperation towards my project. Last but not the least; I want to thank the almighty for making me what I am today.

Priyanka Bhatia

DECLARATION CERTIFICATE
This to certify that a work presented in the project Performance Appraisal in the partial fulfilment of the requirement for the award of degree of Bachelor of Business Administration at Birla Institute of Technology, Mesra, Ranchi is genuine work carried out under my supervision. To the best of my knowledge the content of this project does not form a basis for the award of any previous degree to anyone else.

Date:

Signature

Department of Management Birla Institute of Technology Noida, U.P.

CERTIFICATE OF APPROVAL
The foregoing project is entitled Performance Appraisal is hereby approved as a creditable study of research topic and has been presented in satisfactory manner to warranty its acceptance as pre requisite to the degree for which it has been submitted. It is understood that by its approval the undersigned do not necessarily endorse any conclusion drawn or opinion therein, but approve the project for the purpose of which it is submitted.

Coordinator (BBA)

Academic Coordinator

Director

CONTENTS
Chapters Page No.

Chapter 1 Introduction

1.1 Introduction of the Study 1.2 Conceptual Framework 1.3 Industry/Company Profile 1.4 Problem Formulation

Chapter 2 Literature Review

Chapter 3 Objectives & Research Methodology

3.1 Objectives of the Study 3.2 Research Design 3.3 Sampling Framework

Chapter 4 Data Analysis and Interpretations

Chapter 5 Findings of the Study

Chapter 6 Conclusion and Recommendation

6.1 Recommendations 6.2 Conclusion 6.3 Limitations of the Study

Bibliography

Annexure-

1.

Questionnaire 2. List of Respondents: 3. Other Supporting Materials

CHAPTER -1 INTRODUCTION

1.1 Introduction of the Study

The concept of Performance Management has been one of the most important and positive developments in the sphere of Human Resource Management in recent years. Performance Management is, of course, about performance. It is important to clarify what performance means, because if performance cannot be defined, performance appraisal cant be done properly and eventually performance management system cannot be successfully implemented. Performance appraisal which is key to Performance Management System may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual and semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development.

Organizations are now looking forward to obtain competitive edge through highly developed Employee skills by adopting an efficient performance management system. The efficiency of an organization depends directly on the capability and talent of its personnel, and how motivated and satisfied they are. This study throws light on the effectiveness of implementing Performance Management System in the organization and how Performance appraisal as a key to Performance Management System helps to increase productivity of employees, which makes the organization efficiently. APPRAISAL- the word means to fix a price or value for something. So it is a process in which one values the employees contribution and worth to the organization.

PERFORMANCE APPRAISAL Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. According to Flippo, a prominent personality in the field of Human resources, "performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of

reviewing and assessing the performance of an employee during a given period of time and planning for his future. It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management's interest in the progress of the employees. OBJECTIVES OF PERFORMANCE APPRAISAL 1. To review the performance of the employees over a given period of time. 2. To judge the gap between the actual and the desired performance. 3. To help the management in exercising organizational control. 4. Helps to strengthen the relationship and communication between superior subordinates and management employees. 5. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. 6. To provide feedback to the employees regarding their past performance. 7. Provide information to assist in the other personal decisions in the organization. 8. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. 9. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. 10. To reduce the grievances of the employees.

1.2 Conceptual Framework

There are different views on what performance is. It can be regarded as simply the record of outcomes achieved. On the individual basis, it would then be the record of a persons accomplishments (Bernadine et al, 1995; Kane, 1996). On the other hand, it has also been suggested that performance is behaviour and should be distinguished from the outcomes because the outcomes can be contaminated by systems prevalent in the organization (Campbell, 1990). Performance means both behaviour and result behaviour, emanates from

the performer and transforms performance from abstraction to action. Not just the instrument for result, behaviour is also the outcome in its own right and can be judged apart from the result (Brumbrach, 1988). Performance Management is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization (Herman Aguinis, 2007). The concept of performance management has been one of the most important and positive developments in the sphere of Human Resource Management in recent years. The phrase Performance Management was first coined by Beer and Ruth in 1976. It became recognized, as a distinctive approach in mid 1980s, because of the growing realization that a more continuous and integrated approach was needed to manage and reward performance. Performance Management System is the process of performance planning, performance monitoring and coaching, measuring individual performance linked to organizational goals, giving him/her feedback, rewarding the individual based on his/her achievements against set performance goals and required competencies, and working out a plan for his/her development. (Dr. R K Sahu, 2007). Sound PMS of an organization is directly related to the satisfaction of the employees. Performance appraisal is always result based rather than be effort based. This sometimes leaves the employees dissatisfied. However in case of good PM, the appraisal process must be transparent which allows the employees to interact with their managers and clarify their queries. Under a performance appraisal system employees must be able to see some benefits to them, which is important for personal development of employees. This result in the employee satisfaction, which increases productivity as the performance of an organization, depends directly on the performance of its people. (Dr. R K Sahu, 2007).

1.3 COMPANY PROFILE Sumi Motherson Innovative Engineering Limited is joint venture of Sumitomo Wiring Systems Limited Japan & Motherson Group India. /the Sumitomo Wiring Systems Limited (SWS) Japan was established in 1917 and it is the integral part of SUMITOMO ELECTRIC INDUSTRIES A fortune 500 Organization.

Sumotomo Wiring Systems is one of the major players in the world of Automotive Industry. Sumitomo Wiring Systems (SWS) is the largest manufacturer of wire harness and elastic components. SWS have a total 20 manufacturing facilities worldwide located at the entire premium business hub. SWS have initiated their India operations in the year 1983 and since then their business is continuously expanding. Presently they have 9 ex-pat staff to oversee the Indian
area of operations.

1.4 PROBLEM FORMULATION

Today leading organizations are using every available tool with greater vigour to create a more efficient and profitable business. One of these tools, Performance Management, historically has been viewed as an effective highly political and time consuming task yet there is hardly a single organization in the world that does not want a performance management system focused on results and backed by commitment. The performance appraisal is the key element in the performance management process. When used effectively the performance appraisal can provide accurate feedback on past performance, significantly enhance employees productivity and satisfaction and offer feedback to employees on how to improve. For that reason performance appraisal is one of the most important responsibilities of supervisor or manager.

CHAPTER -2 REVIEW OF LITERATURE

PERFORMANCE MANAGEMENT SYSTEM There are different views on what performance is. It can be regarded as simply the record of outcomes achieved. On the individual basis, it would then be the record of a persons accomplishments (Bernadine et al, 1995; Kane, 1996). On the other hand, it has also been suggested that performance is behaviour and should be distinguished from the outcomes because the outcomes can be contaminated by systems prevalent in the organization (Campbell, 1990).

Performance means both behaviour and result behaviour, emanates from the performer and transforms performance from abstraction to action. Not just the instrument for result, behaviour is also the outcome in its own right and can be judged apart from the result (Brumbrach, 1988). Performance Management is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization (Herman Aguinis, 2007)

The concept of performance management has been one of the most important and positive development in the sphere of Human Resource Management in recent years. The phrase Performance Management was first coined by Beer and Ruth in 1976. It became recognized, as a distinctive approach in mid 1980s, because of the growing realization that a more continuous and integrated approach was needed to manage and reward performance.

Performance Management System is the process of performance planning, performance monitoring and coaching, measuring individual performance linked to organizational goals, giving him/her feedback, rewarding the individual based on his/her achievements against set performance goals and required competencies, and working out a plan for his/her development. (Dr. R K Sahu, 2007).

Sound PMS of an organization is directly related to the satisfaction of the employees. Performance appraisal is always result based rather than be effort based. This sometimes leaves the employees dissatisfied. However in case of good PM, the appraisal process must be transparent which allows the employees to interact with their managers and clarify their queries. Under a performance appraisal system employees must be able to see some benefits

to them, which is important for personal development of employees. This result in the employee satisfaction, which increases productivity as the performance of an organization, depends directly on the performance of its people. (Dr. R K Sahu, 2007).

PERFORMANCE APPRAISAL Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims. The latest mantra being followed by organizations across the world being "get paid according to what you contribute" the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. If the process of performance appraisals is formal and properly structured, it helps the employees to clearly understand their roles and responsibilities and give direction to the individuals performance. It helps to align the individual performances with the organizational goals and also review their performance. Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees.

PROCESS OF PERFORMANCE APPRAISAL

Establishing performance standards- The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards. Communicating the standards- Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization.

The employees should be informed and the standards should be clearly explained to them. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if

required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators. Measuring the actual performance- The most difficult part of the performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.

Measuring the actual performance- The most difficult part of the performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the

outcome of the process and providing assistance rather than interfering in an employees work. Comparing the actual with the desired performance- The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance.

Discussing results- The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.

Decision making- The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc. APPROACHES TO PERFORMANCE DEVELOPMENT Performance appraisal - Traditional approach Traditionally, performance appraisal has been used as just a method for determining and justifying the salaries of the employees. Than it began to be used a tool for determining rewards (a rise in the pay) and punishments (a cut in the pay) for the past performance of the employees. This approach was a past oriented approach which focused only on the past performance of the employees i.e. during a past specified period of time. This approach did not consider the developmental aspects of the employee performance i.e. his training and development needs or career developmental possibilities. The primary concern of the traditional approach is to

judge the performance of the organization as a whole by the past performances of its employees. Therefore, this approach is also called as the overall approach. In 1950s the performance appraisal was recognized as a complete system in itself and the Modern Approach to performance appraisal was developed. TRADITIONAL METHODS OF PERFORMANCE APPRAISAL

1. ESSAY APPRAISAL METHOD- This traditional form of appraisal, also known as "Free Form method" involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator.

2. STRAIGHT RANKING METHOD - This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.

3. PAIRED COMPARISON- A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.

4. CRITICAL INCIDENTS METHODS- In this method of performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behaviour as and when they occur.

5. FIELD REVIEW- In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate

their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors personal bias

6. CHECKLIST METHOD- The rater is given a checklist of the descriptions of the behaviour of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees. 7. GRAPHIC RATING SCALE- In this method, an employees quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on the job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory. 8. FORCED DISTRIBUTION- To eliminate the element of bias from the raters ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.

MODERN METHODS OF PERFORMANCE APPRAISAL 1. ASSESSMENT CENTRES- An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics. The major competencies that are judged in assessment centres are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centres are also an effective way to determine the training and development needs of the targeted employees.

2. BEHAVIORALLY ANCHORED RATING SCALES- Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (for eg. the qualities like inter personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents. In this method, an employees actual job behavior is judged against the desired behavior by recording and comparing the behavior with BARS. Developing and practicing BARS requires expert knowledge. 3. HUMAN RESOURCE ACCOUNTING METHOD- Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them. 4. 360 DEGREE PERFORMANCE APPRAISALS- 360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees performance comes from all the sources that come in contact with the employee on his job. 360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee. 360 degree appraisal has four integral components: Self appraisal

Superiors appraisal Subordinates appraisal Peer appraisal

SELF APPRAISAL -Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superiors appraisal forms the traditional part of the 360 degree performance appraisal where the employees responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superiors ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees abilities to work in a team, co-operation and sensitivity towards others.

Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behaviour and performance. It provides a "360-degree review" of the employees performance and is considered to be one of the most credible performance appraisal methods.

360 degree performance appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc. MANAGEMENT BY OBJECTIVES The concept of Management by Objectives (MBO) was first given by Peter Drucker in 1954. It can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed. The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employees actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by them, they are more likely to full fill their responsibilities.

THE MBO PROCESS

UNIQUE FEATURES AND ADVANTAGES OF MBO

The principle behind Management by Objectives (MBO) is to create empowered employees who have clarity of the roles and responsibilities expected from them, understand their objectives to be achieved and thus help in the achievement of organizational as well as personal goals. Some of the important features and advantages of MBO are: Clarity of goals With MBO, came the concept of SMART goals i.e. goals that are:

Specific Measurable Achievable Realistic, and Time bound. The goals thus set are clear, motivating and there is a linkage between organizational goals and performance targets of the employees. The focus is on future rather than on past. Goals and standards are set for the performance for the future with periodic reviews and feedback. Motivation Involving employees in the whole process of goal setting and increasing employee empowerment increases employee job satisfaction and commitment. Better communication and Coordination Frequent reviews and interactions between superiors and subordinates helps to maintain harmonious relationships within the enterprise and also solve many problems faced during the period. How to Complete Performance Appraisal Form Performance appraisal form provides the basis for the performance review, providing the feedback to the employees and the final rating of the employee. It also facilitates various other HR decisions and career development plans and decisions of the employees. Therefore, performance appraisal from should be filled with utmost care and objectivity.

The Performance appraisal form should be filled by the immediate supervisor or manager of the employee in order to ensure that the appraiser if fully acquainted with the performance, responsibilities, targets and standards of the employee. All the instructions and guidelines on the appraisal form should be read and followed carefully.
1.

Be prepared with all the details of the performance, the standards, job description and the past appraisals of the employee.

2.

Clear and unambiguous description of the employee performance should be given in terms of average, above average, good and excellent performance. The focus should be on the employees behaviour throughout the year and not just his recent performance.

3.

4. 5.

Quantify the ratings, wherever possible, to ensure easy comparability.

Substantiate and support your rating, and attach all the necessary documents (if required).

6.

Apart from the defined performance objectives and results, discuss the related issues as well covering all the aspects of the performance.
7.

When filling the appraisal form, be honest and objective. Analysis for Improving Performance

Any performance review process is incomplete without the feedback to the employees. The feedback could be given in the review discussion. Review discussions are semi formal, scheduled, periodic interactions usually bimonthly or quarterly between a manager and his employee. The basic purpose of the review discussion is to analyze the performance of the employee in the past to improve the performance of the employee in future. A review discussion is an opportunity to coach, mentor, learn and understand. The manager encourages his/her employees to critically reflect over progress made on the Performance appraisal plan and to develop creative, yet feasible alternatives for problem areas. The manager uses this opportunity to:

Review the performance of the each employee individually.

Discuss the problems faced by the employees during the course of action.

The solutions tried, and the degree of success achieved in solving the problems faced. Revisit with the employee, his/ her annual plan for the remaining time period and develop revised action plans, if necessary.

Review discussions reassure the employees that each one of them has structured opportunities for one to one interaction with the manager once every two or three months during the year. These opportunities are important as they provide an important chance for performance monitoring or development mentoring. The aim of the performance review discussions is to share perceptions, solve the problem faced during the course of the action, decide on the new goals jointly and provide a feedback to the employee for the past performance i.e. to look at his strengths and weaknesses and also help to chart out a career plan for the employee.

The focus of these performance review discussions should not bet o judge the employees past performance; rather it should be to motivate the employee to improve his future performance and reinforce his good behaviour. Performance Appraisal Training Every organisation conducts performance for assessing the performance of the employees and the organisation. But if not conducted properly, they can give a false impression about the performance of the employees and affect the overall performance of the organisation; therefore, there is a need to train the appraisers to ensure the maximum effectiveness of the process. Studies have revealed that appraisals are often conducted by the managers and the supervisor who sometimes, are themselves not aware of the procedures to be followed. They should be explained the importance and the implications of the Performance appraisal to the organisations, the methods to be followed, the principles and the processes of the appraisal. All managers and supervisors who consult performance appraisals should be given training for the following:
1.

Methods, techniques and guidelines for setting goals and objectives

2.

How to evaluate the performance and rate the employees

3. 4. 5.

Standards for performance documentation

How to complete a performance appraisal form How to maintain objectivity in the appraisal
6. 7. 8. 9.

Questioning techniques for appraisals Responding to employee reactions Improves rapport and communication

Building morale and motivating employees

10.

Observing and measuring performance

11.

Tracking results

12.

Structuring the interview with the focus on improving performance

13.

Feedback techniques (providing constructive feedback)

14.

How to deal with non-performers and people who refuse to co-operate

15.

Post review actions

The training can be given by conducting special workshops by professional HR consultants or qualified and experienced HR professionals of human resource management. The venue for the purpose can be a suitable seminar hall, training room, conference hall, boardroom, or at some place away from the workplace like some hotel etc. HOW TO MEASURE EMPLOYEE PERFORMANCE The most difficult part of the performance appraisal process is to accurately and objectively measure the employee performance. Measuring the performance covers the evaluation of the main tasks completed and the accomplishments of the employee in a given time period in comparison with the goals set at the beginning of the period. Measuring also encompasses the quality of the accomplishments, the compliance with the desired standards, the costs involved and the time taken in achieving the results. Measuring employee performance is the basis of the Performance appraisal processes and performance management. Accurate and efficient performance measurement not only forms the basis of an accurate performance review but also gives way to judging and measuring employee potential. For the purpose of measuring employee performance, different input forms can be used for taking the feedback from the various sources like the superior, peers, customers, vendors and the employee himself. All the perspectives thus received should be combined in the appropriate manner and to get an overall, complete view of the employees performance. Observation can also be exercised by the superior to obtain information. Some suggestions and tips for measuring employee performance are:
1.

Clearly define and develop the employee plans of action (performance) with their role, duties and responsibilities.

2.

Organizational outcomes or the achievement of organizational goals should also be kept in mind.
3. 4.

Focus on accomplishments and results rather than on activities.

Also take note of the skills, knowledge and competencies and behaviors of the employees that help the organisation to achieve its goals.

5.

If possible, collect the feedback about the performance of the employees through multi-point feedback and self-assessments.

6.

Financial measures like the return on investment, the market share, the profit generated by the performance of the team should also be considered.

For an organisation to be an effective organisation and to achieve its goals, it is very important to monitor or measure its and its employee performance on a regular basis. Effective monitoring and measuring also includes providing timely feedback and reviews to employees for their work and performance according to the pre-determined goals and standards and solving the problems faced. Timely recognition of the accomplishments also motivates the employees and help to improve the performance. Measuring the performance of the employees based only on one or some factors can provide with inaccurate results and leave a bad impression on the employees as well as the organisation. For example: By measuring only the activities in employees performance, an organization might rate most of its employees as outstanding, even when the organisation as a whole might have failed to meet its goals and objectives. Therefore, a balanced set of measures (commonly known as balanced scorecard) should be used for measuring the performance of the employee. Performance Appraisal for Employees at Different Levels Performance appraisal is important for employees at all levels throughout the organization. The parameters, the characteristics and the standards for evaluation may be different, but the fundamentals of performance appraisal are the same. But as the level of the employees increases, performance appraisal is more effectively used as the tools of managing performance.

Performance appraisal of Managers: Appraising the performance of managers is very important, but at the same time, it is one of the most difficult tasks in the organization. It is difficult because most of the managerial work cannot be quantified i.e. it is qualitative in nature like leading his/her team, guiding, motivating, planning etc. Therefore, the two things to be noted and evaluated for the purpose of appraisals are:

Performance in accomplishing goals, and

Performance as managers

Performance in accomplishing goals

Managers are responsible for the performance of their teams as a whole. Performance in accomplishing goals would mean to look at the completion or achievement of the goals set for a team of employees which is being assigned to or working under a particular manager. The best measuring criteria for a manager are hi goals, his plans of course of action to achieve them and the extent of achievement of the goals.

Performance as managers
The responsibilities of managers include a series of activities which are concerned with planning, organizing, directing, leading, motivating and controlling. Managers can be rated on the above parameters or characteristics Criteria for measuring performance at different levels: The criteria for measuring performance changes as the levels of the employees and their roles and responsibilities change. A few examples for each level are described below: For top level management

Degree of organizational growth and expansion Extent of achievement of organizational goals

Contribution towards the society

Profitability and return on capital employed For middle level managers

Performance of the departments or teams Co-ordination with other departments

Optimal use of resources

Costs Vs. revenues for a given period of time

The communication with superiors and subordinates For front line supervisors

Quantity of actual output against the targets

Quality of output against the targets Number of accidents in a given period

Rate of employee absenteeism

COMPANY PROFILE (OVERVIEW) The Samvardhana Motherson Group is a focused, dynamic and progressive group providing customers with value added products, services and innovative solutions. The Group has a diversified product range to serve multiple industries, with automotive industry being the main industry served. The Group business portfolio comprises electrical distribution systems (wiring harnesses), automotive rear view mirrors, polymer processing, injection moulding tools, elastomeric processing, modules and systems, machined metal products, cutting tools, IT services, design engineering, CAE services, sunroofs, vehicle air conditioning systems, lighting systems, cabins for off-highway vehicles, cutting tools and thin film coating metals. The Group has invested in technologies that provide manufacturing support, including compressors, paint coating equipment, auxiliary equipment for injection moulding machines, sales, installation and servicing of industrial robots and automotive manufacturing engineering services. Key Facts Largest in India One of the largest manufacturers of automotive rear view mirrors in the world. Largest automotive wire manufacturer. Largest manufacturer of rear view mirrors for passenger cars in India. One of the largest suppliers of moulded plastic components, assemblies & modules for automotive industry. One of the largest manufacturers of gear cutting tools in India Presence in 21 countries across the globe. Group Turnover USD 2.2 Billion approx. (2009-10)

 Joint ventures in key technology areas. Over 35,000 qualified professionals. HISTORY 1975- Motherson was founded 1977- First Cable factory started

1983- Technical agreement with Tokai Electric Co. (Now Sumitomo Wiring Systems - Japan) for Wiring Harness 1986- JV with Sumitomo Wiring Systems Japan 1989- Injection Moulding

1992- Cutting Tool Manufacturing

1994- Tool Room for small and Medium sized Moulds (up to 650 Tons) 1995- Cockpit Assemblies; Automotive Mirrors 1997- Blow Moulding

1998- Rubber Injection Moulding

1999- First Overseas office established (Austria)

2000- IT and Design Company; Representative Office at Singapore

2001- Liquid Silicone Rubber Injection moulding; Machined Metal Components 2002- Wiring Harness manufacturing at Sharjah; Design Centre at Ireland 2003- Offices in USA & UK established; Tool Room at Sharjah; Automotive Sunroofs 2004- European Headquarters at Germany; Sheet Metal Die Design

2005- Injection Moulding & metal Machining in Germany; Plastic Moulding & Metal Machining at Germany; PVC Tube Manufacturing; JVs for o Environment Management Systems o Industrial Robots o Automotive Manufacturing Engineering 2006- Wiring Harness Manufacturing in UK ; Bus Air-conditioning Systems ;

Auxiliary Equipment for Injection moulding machines; Cabins for off road vehicles in India 2007- Rubber parts Manufacturing in Australia; JVs for o HVAC Systems, Meter clusters, Body Control Modules & Compressors

o Bimetal Band Saws o Transport & Stationary Refrigeration Systems o Thin Film coating metals 2008- JV for Lighting Systems, Pedal Box Assembly & Air Intake manifolds; JV for Precision machined metal components 2009- Visio corp. becomes a part of Samvardhana Motherson Group and renamed Samvardhana Motherson Reflectec (SMR); Gear cutting tool manufacturing through a new venture Motherson Advanced Tooling Solutions; Polymer Compounding

PEOPLE

We at Samvardhana Motherson believe that our success as an organization depends on the collective abilities and commitment of our people. A force which is our most valued asset - our core strength.

A systems approach to HR facilitates professionals to work together, broadening the individual knowledge and blending expertise in various industry and service practices

ACCREDITATIONS
The Samvardhana Motherson Group companies are accredited with relevant accreditations such as ISO 9001, VDA 6.1, ISO/TS 16949, CMM Level 5, ISO 14001 & OHSAS 18001. Quality, a way of life at Samvardhana Motherson... By virtue of its international affiliations, spread of operations and a global customer base, the group has experience of working with a wide range of international quality systems, customers, collaborators and in-house quality functions. There is a continuous interchange of best practices among all group companies. A centralised pool of quality experts ensures fast track implementation of quality systems and readiness for certifications of new ventures in a short span of time. A strong quality culture that prevails throughout the organisation, allows Samvardhana Motherson to deliver highest quality products and meet customer expectations worldwide.

GROUP MISSION

 Ensure customer delight Involve employees as partners in progress Set new standards in good corporate citizenship

Enhance shareholder value

GROUP VISION
To be a Globally Preferred Solutions Provider

Samvardhana Motherson Group - Group Companies

A Basic Concepts Designs Pty. Ltd.

A Basic Concepts Designs Pty. Ltd.

A Basic Concepts and Design Pty. Ltd. (ABCD) is a Samvardhana Motherson Group company based in Melbourne (Australia). It specializes in Product Design, Tool Design and Project Management for turnkey solutions.

AES (India) Engineering Limited

AES (India) Engineering Limited

AES (India) Engineering Ltd. is a joint venture between Samvardhana Motherson Group and Automotive Engineering Services Co. Ltd. (Japan) (AES) for providing services that include Manufacturing Engineering, Consultation, Project Management and Turnkey Supplies to the automotive industry.

ANEST IWATA Motherson Coating Equipment Ltd.

ANEST IWATA Motherson Coating Equipment Ltd.

Anest Iwata Motherson Coating Equipment Ltd.(AIMC) is a joint venture between Samvardhana Motherson Group and Anest Iwata Corporation Japan. The coating equipment division integrates core technology of atomization, fluid supply and its control with cutting edge technology, covering a wide range of coating applications. The company aims at high quality services and supply of environment friendly technology and products.

ANEST IWATA Motherson Limited

ANEST IWATA Motherson Limited

Anest Iwata Motherson Limited (AIM) is a joint venture between Samvardhana Motherson Group and Anest Iwata Corporation (Japan). AIM manufactures Lubricated and Oil-Free Reciprocating Compressors.

Calsonic Kansei Motherson Auto Products Limited

Calsonic Kansei Motherson Auto Products Limited

Calsonic Kansei Motherson Auto Products Limited (CKM) is a joint venture between Motherson Sumi Systems Limited and Calsonic Kansei Corp. Japan for manufacturing a wide range of modules that include: HVAC Systems, Interior (Injection & Assembling), ECM (Engine Cooling Module), Exhaust System (Press & Welding), CCM (Cross Car Beam), Compressor, BCM (Body Control Module), Instrument Cluster (Meter, Electronics), CPM (Cockpit Module).
CTM India Ltd.

CTM India Ltd.

CTM India Ltd (CTMIL) is a Samvardhana Motherson Group company .The company is a commercial tool room with capabilities to manufacture injection molding and blow molding tools, checking fixtures and gauges.

Fritzmeier Motherson Cabin Engineering Ltd.

Fritzmeier Motherson Cabin Engineering Ltd.

Fritzmeier Motherson Cabin Engineering Ltd is a Joint venture between Samvardhana Motherson Group and Fritzmeier Systems GMBH & Co. Fritzmeier Systems GMBH is a company of the Fritzmeier Group, which is engaged in development, manufacture and sale of complete-Cabs, Coverparts and System-components for the vehicle-Industry and various off highway applications. The Fritzmeier Group is a Global Player with 8 Production Plants and 4 corporations in 10 countries.

Global Environment Management (FZC)

Global Environment Management (FZC)

Global Environment Management (GEM) is a joint venture between Motherson Sumi Systems Limited and ECompost Pty Ltd, an Australia based specialist developer of ecologically sustainable initiatives, products and services. GEM has been formed for the marketing of commercially viable, environment improving products.

Kyungshin Industrial Motherson Limited

Kyungshin Industrial Motherson Limited

Kyungshin Industrial Motherson Limited (KIML) is a joint venture between Motherson Sumi Systems Limited and Kyungshin Industrial Company Limited (South Korea). Kyungshin Industrial Company Limited is a leading manufacturer of integrated wiring harnesses in Korea. KIML specialises in manufacturing wiring harnesses, as per customer specifications. Located at Chennai in India, KIML caters to the entire wiring harness requirements of its customers in the region.
Magneti Marelli Motherson Auto System Ltd.

Magneti Marelli Motherson Auto System Ltd.

Magneti Marelli Motherson Auto System Limited is a joint Venture between Samvardhana Motherson Group and Magneti Marelli, Italy.

Matsui Technologies India Ltd.

Matsui Technologies India Ltd.

Matsui Technologies India Ltd. is a joint venture between Samvardhana Motherson Group and Matsui Manufacturing Company, Japan. Matsui is one of the world's leading manufactures of plastic material handling equipment with the highest market shares in Dryers, Temperature Controllers and Loaders.

Miyazu Motherson Engineering Design Limited

Miyazu Motherson Engineering Design Limited

Miyazu Motherson Engineering Design Limited (MMED) is a joint venture between Samvardhana Motherson Group and Miyazu Seisakusho Co. Ltd. (Japan) and Sojitz Corporation (Japan). MMED is engaged in press die design, 3D Solid Design and CNC code generation.

Motherson Advanced Tooling Solutions Limited

Motherson Advanced Tooling Solutions Limited

Motherson Advanced Tooling Solutions Limited (MATS), a subsidiary of Samvardhana Motherson Group is ISO 9001:2000 certified company, manufacturing high quality broaches and HSS Gear Cutting Tools for wide spectrum industry segments like automobile industry, power sector, defense & other engineering industries.

Motherson Automotive Technologies & Engineering (A Division of MSSL)

Motherson Automotive Technologies & Engineering (A Division of MSSL)

Motherson Automotive Technologies & Engineering (MATE), a division of Motherson Sumi Systems Ltd. (MSSL), specialises in large size injection molding, blow molding, compression molding and vacuum forming supported by state-of-the-art paint shops. The company provides complete turnkey solutions supplying parts such as Instrument panel assemblies, Door trims, Under bonnet parts, other Interior and exterior parts.

Motherson Elastomers Pty Limited

Motherson Elastomers Pty Limited

Motherson Elastomers Pty Ltd. is a subsidiary of Motherson Sumi Systems Ltd. and is engaged in manufacturing rubber extruded components and rubber mixing. This is the largest non-tyre related rubber mixing plant in Australia. It has currently 1900 material formulations which include 15 different polymers.

Motherson Electrical Wire Lanka Pvt. Ltd.

Motherson Electrical Wire Lanka Pvt. Ltd.

Motherson Electrical Wires Lanka Pvt. Ltd (MWL) is a 100% subsidiary of Motherson Sumi Systems Ltd.

MWL specialises in manufacturing of wires for automotive application. Strategically located in Srilanka, MWL supplies wires to different manufacturing location of the group.
Motherson Innovative Engineering Solutions (A division of MSSL)

Motherson Innovative Engineering Solutions

Motherson Innovative Engineering Solutions (MINES), is a division of Motherson Sumi Systems Limited. MINES undertakes contract manufacturing of high precision machined metal components and assemblies. Manufacturing facilities include state-of-the-art CNC machines and higly customized special purpose machines, bi-metal brazing supported by surface treatment and metrological measuring facilities. MINES manufactures products for a wide range of applications including Computers, Test & Measuring Equipment, Scientific Equipment, Machinery Parts, Valve Body Parts and other precision applications.
Motherson Machinery and Automations Limited

Motherson Machinery and Automations Limited

Motherson Machinery and Automations Limited (MMAL) is a subsidiary of Samvardhana Motherson Finance Limited. It is an industrial trading company with focus on machine tools and hydraulic products. MMAL caters to the demands of the Indian Engineering Industry in the areas of machine tools, industrial products and low-cost automation solutions.

Motherson ORCA Precision Technology GmbH

Motherson ORCA Precision Technology GmbH

Motherson ORCA Precision Technology GmbH (MOPT) is a JV between Motherson Sumi Systems Ltd. and Dremotech GmbH & Co. KG(ORCA), Germany. It is located in Donaueschingen Germany. MOPT specialises in Metal Turning & Plastic-Metal Combined Parts.

Motherson Sumi Electric Wires (A Division of MSSL)

Motherson Sumi Electric Wires (A Division of MSSL)

Motherson Sumi Electric Wires (MSEW) is a division of Motherson Sumi Systems Limited, manufacturing wires with technology from Sumitomo Wiring Systems Ltd. (Japan).

Motherson Sumi Wiring System Ltd. (FZC)

Motherson Sumi Wiring System Ltd. (FZE)

Motherson Sumi Wiring System Ltd. (FZC) (MSWS) is joint venture between Motherson Sumi Systems Limited and Sumitomo Wiring Systems, Ltd. (Japan). Located at Sharjah in UAE, MSWS supplies wiring harnesses to Sumitomo Electrics Wiring Systems in Europe.

Motherson Techno Tools Limited

Motherson Techno Tools Limited

Motherson Techno Tools Limited (MTTL) is a joint venture between Samvardhana Motherson Group and Sumitomo Electric Industries (Japan) (SEI), for the manufacture and sale of Cubic Boron Nitride (CBN) and Polycrystalline Diamonds (PCD) Cutting Tools. Sumitomo Electric Industries is the world leader in the field of CBN (Cubic Boron Nitride) & PCD (Polycrystalline Diamond) Cutting Tools.

Motherson Zanotti Refrigeration System Limited

Motherson Zanotti Refrigeration System Limited

Motherson Zanotti Refrigeration System Limited is a joint venture between Samvardhana Motherson Group and Zanotti S.P.A, Italy. The product portfolio includes a wide range of Refrigeration Systems for automobile and stationary applications.

Motherson Sumi INfotech & Designs Limited

Motherson Sumi INfotech & Designs Limited

MIND is an IT services company, is a joint venture between Samvardhana Motherson Group and Sumitomo Wiring Systems (Japan), specialising in Engineering Design & Software Development

Software Development Group

The Software Development division of MIND is certified for SEI CMM Level 5 and ISO 9001:2000. It primarily provides: Enterprise IT Solutions Solutions for Software Companies

Engineering & Design Services

The Engineering & Design Services division of MIND is certified for ISO 9001:2000. It specialises in Body Styling, Product Engineering, Prototyping, Mold Design, Industrial Design and related services.

Motoman Motherson Robotics Limited

Motoman Motherson Robotics Limited

Motoman Motherson Robotics Limited (MMRL) is a joint venture between Samvardhana Motherson Group and Yaskawa Electric Corporation (Japan) and Sojitz Corporation (Japan).

MSSL Advanced Polymers s.r.o.

MSSL Advanced Polymers s.r.o.

MSSL Advanced Polymers s.r.o. is a subsidiary of Motherson Sumi Systems Limited located at Pardubice, Czech Republic and manufacturing plant at DolnRedice

MSSL GB Ltd.

MSSL GB Ltd.

MSSL GB Ltd. is a 100% owned Subsidary of Motherson Sumi Systems Ltd. The Company is located in Gateshead, Tyne & Wear, in the North East of England

MSSL GB Ltd. manufactures Wiring Harnesses, Wiring Assemblies and Electronic Control Systems for automotive (Truck & Bus), Heavy Trailers and Off Road Vehicles.

MSSL Ireland Pvt. Ltd.

MSSL Ireland Pvt. Ltd.

MSSL Ireland Pvt. Ltd. is a 100% subsidiary of Motherson Sumi Systems Limited. MSSL Ireland specialises in Design & Development of Wiring Harnesses. The design facilities include designing on Unigraphics, Capital - H & Pro E. The company also has complete Proto Building Facilities. Being located in Europe, MSSL Ireland is able to provide prompt design and engineering support to customers in the region.
MSSL Mideast (FZE)

MSSL Mideast (FZE)

MSSL Mideast FZE is a 100% subsidiary of Motherson Sumi Systems Limited. Located in SAIF Zone, Sharjah, the company specialises in manufacturing of wiring harnesses for material handling equipment and off-road vehicles.

MSSL Polymers GmbH

MSSL Polymers GmbH

MSSL Polymers GmbH is a subsidiary of Motherson Sumi Systems Limited located at Schwisch Gmd (Germany). MSP-G specializes in plastic injection molding and two component resin injection molding which are supported by post molding processes.

MSSL Tooling Ltd. (FZC)

MSSL Tooling Ltd. (FZC)

MSSL Tooling Ltd. (FZC) is a subsidiary of Motherson Sumi Systems Limited. Located in Sharjah (UAE). MTL specialises in manufacturing of injection molding tools for injection molding machines upto the range of 400 tonnes

Nachi Motherson Tool Technology Ltd.

Nachi Motherson Tool Technology Ltd.

Nachi Motherson Tool Technology Ltd. (NMTTL) is a joint venture between Samvardhana Motherson Group and Nachi Fujikoshi Corporation, Japan for manufacturing bimetal band saw blades.

Nissin Advance Coating Indo Co. Ltd.

Nissin Advance Coating Indo Co. Ltd.

Nissin Advanced Coating Indo Co. Limited is a joint venture between Samvardhana Motherson Group and Nissin Electric Co. Ltd., Japan for providing Advacned Thin Film Coating Services.

Samvardhana Motherson Reflectec

Samvardhana Motherson Reflectec

SMR - Samvardhana Motherson Reflectec, a member of Samvardhana Motherson Group, is focused on developing, producing and distributing rear vision systems for the international automotive industry.

Spheros Motherson Thermal System Limited

Spheros Motherson Thermal System Limited

Spheros Motherson Thermal System Limited is a joint venture between Samvardhana Motherson Group and Spheros GmbH of Germany. Spheros GmbH, previously, a division of Webasto AG. is world's leading manufacturer of Air Conditioners, Heaters & Hatches for buses and coaches.

Sumi Motherson Innovative Engineering Limited

Sumi Motherson Innovative Engineering Limited

Component Division

Sumi Motherson Innovative Engineering (Component Division), is a joint venture between Samvardhana Motherson Group and Sumitomo Wiring Systems Limited (Japan), specialises in manufacturing of small & medium sized injection molded plastic components and small press stamped parts for an extensive range of products catering to automotive, electric and electronics industry. The division also has competency in manufacturing of press stamped small sheet metal parts.

Tooling Division

Sumi Motherson Innovative Engineering (Tooling Division), is a joint venture between Samvardhana Motherson Group and Sumitomo Wiring Systems Limited (Japan), is a commercial tool room specialised in high precision tooling. The company designs and manufactures plastic injection molding tools for a wide range of industry applications for machines upto 350 Tonnes.

Tigers Connect

Tigers Connect

Tigers Connect a subsidiary of Samvardhana Motherson Finance Limited, are the creators of a dynamic and easy to use travel system that encompasses multiple travel products on a single platform.

Webasto Motherson Sunroofs Limited

Webasto Motherson Sunroofs Limited

Webasto Motherson Sunroofs Limited (WMSL) is a joint venture between Samvardhana Motherson Group and Webasto AG (Germany). Webasto is the world's largest manufacturer of Sunroofs.

Woco Motherson Advanced Rubber Technologies Ltd

Woco Motherson Advanced Rubber Technologies Ltd

WOCO Motherson Advanced Rubber Technologies Ltd (WMART) is a joint venture between Motherson Sumi Systems Limited and WOCO Industrietechnik GmbH, Germany (WOCO) for manufacturing injection molded rubber parts.

Woco Motherson Elastomer Limited

Woco Motherson Elastomer Limited

WOCO Motherson Elastomer Limited (WMEL) is a joint venture between Motherson Sumi Systems Limited and WOCO Industrietechnik GmbH, German. The company manufactures Injection Molded Rubber Parts, Rubber to Metal Bonded Parts and Rubber to Plastic Bonded Parts mainly for the Automotive Industry and also for White Goods Industry.

Woco Motherson Limited (FZC)

Chapter 3

Objectives & Research Methodology

3.1 Objectives of the Study

To study the relevance of Performance appraisal at Motherson Sumi System Limited, Noida. Organizational benefit of performance management system. To suggest various methods to improve its effectiveness.

3.2 Research Design

Research process includes research design, which tells about the nature of the study. Research comprises defining and redefining problems, and suggested solutions, collection, organizing a devaluating data, making deductions and reaching conclusion. This research is an exploratory research. The following procedure was adopted in the project: A survey of the employees at different levels at MOTHERSON SUMI SYSTEM LIMITED will be done with the help of a structured questionnaire.

3.3 Sampling Framework Sample Size

The sample size of the employees was 30.

Sources of Data Collection

The study is primarily based on primary data. Secondary data is collected through companys records, books related to the topic, HR magazines and journals, and data from the Internet will also be taken.

Analysis Pattern
After the collection of data from the primary and secondary sources that will be properly arranged and tabulated to make analysis and interpretation.

Chapter 4

Data Analysis and Interpretations

1.What do you understand by the term Performance Management?

pay based on performance rating(30%) 30%

performance appraisal (30%) 30%

assessment of training and development needs(26%) 26%

regular meetings with senior(14%) 14%

2 a) Performance Management motivates me?

Yes-67% No-20% Can't say- 13%

13%

20% 67%

2 c)Performance Management is very important for my future?

yes- 83% no- 13% 3% 13% can't say- 3%

84%

3 a) Annual Appraisal
Yes- 83% No- 10% Can't say- 7%

7% 10%

83%

3 b) 360 degree feedback

Yes- 40% No- 27% Can't say- 33%

33%

40%

27%

3 c) Self appraisal
Yes- 67% No-6% Can't say- 27%

27%

6% 67%

4 a) Performance related pay is an essential part of performance management?

Yes- 60% No- 27% Can't say- 13%

13%

27% 60%

4 b) Performance Management distracts people from more important core activities?

Yes- 27% No- 10% Can't say- 40%

35% 52%

13%

4 c)Performance Management motivates people and makes them feel the part of the organisation?
Yes- 60% No- 13% Can't say- 27%

27%

13%

60%

5. Have you carried out all the requirments of your organisation performance management system in last year?
Yes- 93% 1% 6% No-1% Can't say-6%

93%

6 a)Implemented a program of self development

Yes -47% No- 17% Can't say- 36%

36% 47%

17%

6 b) received a pay rise?

Yes- 77% No- 10% Can't say- 13%

13% 10%

77%

6 c) Identified career development?

Yes- 73% No- 7% Can't say- 20%

20%

7%

73%

7 a) My organisation is committed to my training and development?

Yes- 66% No- 7% Can't say- 27%

27%

7%

66%

7 b) My organisation communicates well?

Yes- 87% No- 10% 3% 10% Can't say- 3%

87%

7 c) My collegues have respect for each and we work as a team?

Yes- 90% No- 7% 3% 7% Can't Say- 3%

90%

8 a) I have full authority to determine my work objectives?

Yes- 70% No- 13% Can't say- 17%

17%

13% 70%

8 b) I have received lot of feedback on my performance?

Yes- 63% No- 7% Can't say- 30%

30%

7%

63%

8 c) I fully understand my goals and objectives?

Yes- 86% No- 7% Can't say- 7 %

7% 7%

86%

Chapter 5 Findings of the Study

The results of above presented data and questionnaire reveals, following findings: 1. Performance management is mostly understood as performance appraisal or review and pay based performance ratings. 2. Performance management plays a role of a motivator, developer of skills and potential and is considered important for future prospects. 3. Performance related pay is an essential part of performance management. 4. Result of performance management: Implemented self development Received a pay rise Career development Identified training needs.

Chapter 6 Conclusion and Recommendation

6.1 Recommendations 1. Setting goals to be achieved : Goals have to be S.M.A.R.T. S- SPECIFIC set clear concrete goal. M- MEASURABLE- quantity, quality, cost and time A- ACHIEVABLE- realistic should stretch you. R- RESULT ORIENTED- Deliverable, accomplishments. T- TIME BOUND- deadliness dates. FOR EXAMPLE: To establish alternate vendors for top 10 critical, Items for home ups line of products by June 2007

2. Understanding the role each one has to play in Performance Appraisal. Managers Role :

Managers play a crucial link between organisations and individual employees, their action and attitude are key drivers for the success of any performance management system. The role is described below: Set goals for employees Create clear expectation for employees. Provide honest and timely feedback Be fair, reasonable and consistent Work towards employee growth and development Communicate honestly and directly Provide opportunities for learning through coaching. Employees role:

The role of employee in the performance management system is equally critical as that of manager. The role is described below: Ask questions so as to understand clearly what is expected. Involve and participate Perform work as per assign standards Take charge of your own development Create opportunities to seek and give feedback to your manager.

6.2 Conclusion
Performance appraisal is integral part of performance management. It benefits not only to the employees but to the organisation as a whole. It is observed that employees get an understanding of the expectations of their organisation in terms of performance .Employees performance and contributions are aligned with larger organisational goals. Employees get to know how he is performing through periodic feedback and performance appraisal. Employees get motivation to perform better and better, by this it leads to accomplishment of individual as well as organisational goal. Performance appraisal effectiveness is very important to achieve organisational goals. Benefits organisation has are as follows: Ensures a realistic link between performance, recognition and reward. Helps build a uniform focus across organisation Fosters leadership role in manager to counsel and coach his employees. Improves communication both ways(top to bottom & bottom to top)

6.3 Limitations of the Study

The various limitations that were faced during the making of this project are: The scope of the project is limited to Sumi Motherson Innovative Engineering Ltd,Noida The time for the project is not sufficient to undergo all the procedures. Employees may face time constraint while giving information Budget might be a constraint.

Bibliography Books referred for information:

1. Human Resource Management, Concepts and Issues (Fifth Edition) : Dr T.N Chhabra, (unit vii: Appraisal& Audit, ch20, 21)

2. Strategic Human Resource Management, A General Managerial Approach (Second edition): Charles R.Greer (ch7, strategy Implementation: Reward& Development Systems) Web sites referred for information:

1. http://performanceappraisalprocess.com/
2. http://appraisals.naukrihub.com/purpose-of-performanceappraisal.html 3. http://www.scribd.com/doc/15022443/performance-appraisal
4 .http://www.motherson.com/Sumi-Motherson-Innovative-Engineering

Annexure
1 Sample of Questionnaire used:
A STUDY ON PERFORMANCE MANAGEMENT SYSTEM

Name:

Designation:

Years of Experience in Sumi Motherson Group:

Q.1 What do you understand by the term: Performance Management.

a) Performance Appraisal or Review b) Regular Meetings with Senior to Review Progress c) Assessment of training and development needs d) Pay based on performance ratings

Q.2 Performance Management, as it applies to you personally in your current role (Please specify in yes/no)

a)Performance Management motivates me. Yes No Cant say

b)Performance Management helps to develop my skills and potential. Yes

 No Cant say

c)Performance Management is very important for my future. Yes No Cant say

Q.3 According to you, Features of Performance Management that are included in your arrangements are : (Please answer in yes/no)

a)Annual Appraisal: Yes No Cant say

b)360 degree Feedback: Yes No Cant say c)Self Appraisal Yes No Cant say Q.4 What do you feel about the following statements: (Please answer in yes/no) a) Performance related pay is an essential part of Performance Management. Yes No Cant say

b) Performance Management distracts people from more important core activities. Yes No Cant say

c)Performance Management motivates people and makes them feel the part of the organization. Yes No Cant say

Q. 5 have you carried out all the requirements of your organisation Performance Management arrangements in the last year: (Please answer yes/no) Yes No Cant say

Q. 6 If Yes, what actions are carried out as a result: a) Implemented a program of self development Yes No Cant say

b) Received a pay rise Yes No Cant say

c) Identified career development Yes No Cant say

Q. 7 Regarding your organisation: (Please answer in yes/no) a) My organisation is committed to my Training & Development Yes No Cant say

b) My organisation Communicates well. Yes No Cant say

c) My colleagues have Respect for each other& we work as a Team.. Yes No Cant say

Q. 8 Regarding Goals & Delegation of Authority of your organisation:(Please answer yes/no) b) I have the full authority to determine my work objectives Yes No Cant Say

a) I receive a lot of Feedback on my performance Yes No Cant Say

b) I fully understand my goals and objectives Yes No Cant Say

Name: Signature:

2 List of Respondents.
Sr.No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. Employee _Id 6523 1288 1340 1360 6547 1383 1456 1125 5678 4458 7790 3342 9596 5249 6588 6524 7002 1376 6503 1188 1337 1368 1096 1068 1151 1331 1284 6519 6520 1342 Employee Name Balkrishan Lovesh Gaur Manoj Kumar Rohit Jain Harish Kr.Makkar Akash Sharma Anita Yadav Tek Chand Sumitra Vipin Jain Kamal Sinha Neera Lal Siby John Beer Singh Tarun Madan Gurmeet Singh Jain Prakash Amit Kumar Rataneshwari R. N. Singh Ram Kumar Dikhst Deepak kumar Arun Verma Dinesh Mukesh Lalit Raheja Ajay Tiwari Nepal Singh Subash Radha