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A STUDY ON “THE EFFECTIVENESS OF PERFORMANCE APPRAISAL” WITH SPECIAL REFERENCE TO AMANA TOYOTA, KANNUR.

DHANUSH M C

2014-2015

CHAPTER1

INTRODUCTION TO THE STUDY

PERFORMANCE APPARAISAL

INTRODUCTION

The study is to find out the EFFECTIVENSS OF PERFPRMANCE APPRAISAL SYSTEM AT

“AMANA TOYOTA”.To find out this, I have done the survey.

Employee Survey:

For this survey, I have prepared a questionnaire; through this I collected data from Employees.

Sample Size of survey is 100 employees. By analyzing these questionnaires, I find out the

effectiveness of the performance appraisal system and job satisfaction. In this report, I explained

the analysis of questionnaire through graphs and tables.

Scope of study

The Sample Size is Limited, So as to give the accurate information.

The scope is very limited, because attitude & expectations of the people change

According to the time & situation.

Consistency was lacking with regard to the information given by few employees.

Objective of the study

The board objective is to study the “PERFORMANCE APPRAISAL SYSTEM WITH REFERANCE TO AMANA TOYOTA”.

Other objective are;

To analyze the effectiveness of performance appraisal system.

To provide suggestion, this may be beneficial to the company in improving the

performance of employee sand to increase their future potential and value to the

company.

To find out the satisfaction level of employees in Amana Toyota.

Research and Methodology

Research methodology is away to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. It means that the way

one researcher select him sample size, methods of data collection, various tools used for studying

the problem with certain objectives.

Research Design

Research design is a comprehensive plan of the series of operation that research intends to carry out to accomplish the research objectives.

Source of data

Main source of data are primary data and secondary data;

Primary Source

Data come from primary source is called primary data. Primary data from the respondents that is from employees were collected with the help of structured questionnaire.

Secondary Source

Secondary data refers to the information of facts, which are already available. The source of secondary data mainly includes company website, employee handbook, journals, magazines etc. And the data provided from the AMANA TOYOTA is also a source of secondary data.

Area of study

The study has been conducted at AMANA TOYOTA, KANNUR.

Duration of study

The study was carried out on 20-04-2015 to 20-06-2015.

Sample Selection and Size

Samples were collected from employees from different departments from AMANA

TOYOTA, KANNUR. The respondents were met in person and information for the study was

collected. A total of 50 respondents were selected for the study. These person were personally

interviewed and questionnaire given to them.

CHAPTER 2

INDUSTRY PROFILE

AUTOMATIVE INDUSTRY IN INDIA

The automotive industry in India is one of the largest automotive markets in the world. It

had previously been one of the fastest growing markets globally, but is currently experiencing

flat or negative growth rates. India's passenger car and commercial vehicle manufacturing

industry is the sixth largest in the world, with an annual production of more than 3.9 million

units in 2011.[3] According to recent reports, India overtook Brazil to become the sixth largest

passenger vehicle producer in the world (beating such old and new auto makers as Belgium,

United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, and Brazil). Throughout the

course of 2011 and 2012, the industry grew 16-18%, selling around three million units, in 2009;

India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea,

and Thailand. In 2010, India beat Thailand to become Asia's third largest exporter of passenger

cars.

The majority of India's car manufacturing industry is based around three clusters in the

south, west and north. The southern cluster consisting of Chennai is as of 2010, India is home to

40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India

in 2010 (an increase of 33.9%), making the country the second (after China) fastest growing

automobile market in the world in that year. According to the Society of Indian Automobile

Manufacturers, annual vehicle sales are projected to increase to 4 million by 2015, no longer 5

million as previously projected the biggest with 35% of the revenue share. The western hub near

Mumbai and Pune contributes to 33% of the market and the northern cluster around the National

Capital Region contributes 32%. Chennai, houses the India operations of Ford, Hyundai,

Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Capron, Mini, and Datsun.

Chennai accounts for 60% of the country's automotive exports. Gurgaon and Manesar in

Haryana form the northern cluster where the country's largest car manufacturer, Maruti Suzuki,

is based. The Chakan corridor near Pune, Maharashtra is the western cluster with companies like

General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz,

Land Rover, Jaguar Cars, Fiat and Force Motors having assembly plants in the area. Nasik has a

major base of Mahindra and Mahindra with a SUV assembly unit and an Engine assembly unit.

Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster. Another

emerging cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol

and further planned for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki and Peugeot-

Citroen plants are also set to come up in Gujarat. Kolkata with Hindustan Motors, Noida with

Honda and Bangalore with Toyota are some of the other automotive manufacturing regions

around the country.

In 2011, there were 3,695 factories producing automotive parts in all of India. The

average firm made US6 million in annual revenue with profits close to US$400 thousand.

First car on India's roads in 1897. Until the 1930s, cars were imported directly, but in very small

numbers.

The first car showroom in secundarbad

An embryonic automotive industry emerged in India in the 1940s. Hindustan was

launched in 1942, long time competitor Premier in 1944. They built GM and Fiat products

respectively. Mahindra & Mahindra was established by two brothers in 1945, and began

assembly of Jeep CJ-3A utility vehicles. Following the independence, in 1947, the Government

of India and the private sector launched efforts to create an automotive component

manufacturing industry to supply to the automobile industry. In 1953 an import substitution

programmed was launched and the import of fully built-up cars began to be impeded.

The Hindustan Ambassador dominated India's automotive market from the 1960s until the mid-80s

However , the growth was relatively slow in the 1950s and 1960s due to nationalization

and the license raj which hampered the Indian private sector. Total restrictions for import of

vehicles were set and after 1970 the automotive industry started to grow, but the growth was

mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury item.

In the 1970s price controls were finally lifted, inserting a competitive element into the

automobile market. By the 1980s, the automobile market was still dominated by Hindustan and

Premier, who sold superannuated products in fairly limited numbers. During the eighties, a few

competitors began to arrive on the scene.

To promote the auto industry the government started the Delhi Auto Expo which was had its

debut showcasing in 1986. The Auto Expo of 1986 was a window for technology transfers

showing how the Indian Automotive Industry was absorbing new technologies and promoting

indigenous research and development for adapting these technologies for the rugged Indian

conditions. The 9 day show was marked by then Prime Minister Gandhi However.

Liberalization

Eventually multinational automakers, such as, though not limited to, Suzuki and Toyota

of Japan and Hyundai of South Korea, were allowed to invest in the Indian market ultimately

leading to the establishment of an automotive industry in India. Maruti Suzuki was the first, and

the most successful of these new entries, and in part the result of government policies to promote

the automotive industry beginning in the 1980s. As India began to liberalize their automobile

market in 1991, a number of foreign firms also initiated joint ventures with existing Indian

companies. The variety of options available to the consumer began to multiply in the nineties,

whereas before there had usually only been one option in each price class. By 2000, there were

12 large automotive companies in the Indian market, most of them offshoots of global companies

Exports were slow to grow. Sales of small numbers of vehicles to tertiary markets and

neighboring countries began early, and in 1987 Maruti Suzuki shipped 480 cars to Europe

(Hungary). After some growth in the mid-nineties, exports once again began to drop as the

outmoded platforms handed down to Indian manufacturers by multinationals were not

competitive. This was not to last and today India manufactures low-priced cars for markets

across the globe. As of 18 March 2013 global brands such as Proton Holdings, PSA Group, Kia,

Mazda, Chrysler, Dodge and Geely Holding Group are shelving plans for India due to the global

economic crisis.

Emission norms

In tune with international standards to reduce vehicular pollution, the central government

unveiled the standards titled 'India 2000' in 2000 with later upgraded guidelines as 'Bharat Stage'.

These standards are quite similar to the more stringent European standards and have been

traditionally implemented in a phased manner, with the latest upgrade getting implemented in 13

cities and later, in the rest of the nation. Delhi(NCR), Mumbai, Kolkata, Chennai, Bangalore,

Hyderabad, Ahmadabad, Pune, Surat, Kanpur, Luck now, Sholapur, and Agra are the 13 cities

where Bharat Stage IV has been imposed while the rest of the nation is still under Bharat Stage

2015 auto industry trends

The worldwide automotive industry has been enjoying a period of relatively strong

growth and profitability, and the annual sales have reached prerecession levels in some regions.

Yet considerable uncertainty about the future remains.

The most immediate challenge is the unevenness of global markets .auto industry executives and

experts tend to be optimistic about the us market, forecasting annualized sales in north America

in the near term of a relatively robust 16 million cars , up from only 13 million in 2008. However

, the outlook in Europe is much weaker as the region is emerging fitfully from a six year sales

slump. And sales have plunged in Russia and south America – they were down by about 25

percent and 15 percent respectively n august 2014 year –over-year .meanwhile, the Indian

market’s performance has been inconsistent. And growth in china –the world’s largest vehicle

market –has slowed, even though investments by most original equipment manufacturers

(OEMS), which are betting big of future demand ,continue to ramp up reacting strategically to

these demand shifts will be an absolute priority for industry leaders in 2015.

Against this backdrop of macroeconomic uncertainty , we believe major transitions are

under way that will transform auto manufacturing over the next 10 years .0Ems, suppliers , and

the dealers not only must navigate through these changes in the short-term to build market share

and profitability –they also should take steps now to position themselves for success in the next

decades .

Driving change

From the ground level, three powerful forces are rolling the auto industry, shifts n consumer

demand , expanded regulatory requirements for safety and fuel economy , and the increased

availability of data and information,

Shift in consumer demand

Consumers appears to be rethinking their long love affair with the individual automobile

brands and viewing Cars more as transportation machines. although this is not likely to have a

major impact on sales volume , it is affecting how much people are willing to pay for

automobiles .that willingness is also affected by the waning of the product differentiation , due

partly to a general increase in vehicle quality throughout the industry.Major transitions are under

way that will transform auto manufacturing over the next 10 years .

Expanded regulatory requirements

Tighter cooperate average fuel economy (CAFÉ), regulations in the united staes as well as the

rest to the world are more expensive for OEMs to comply with ,requiring high volume to

amortize increasing cost. Regulators are also mandating that more safety related features , such

as backup cameras , be included as standard equipment on new models , adding further to cost .

Increasing availability of data and information

Information about vehicle usage and driver behavior usage is proliferating as sensors and

telemetric systems become more common. All players across the automotive value chain are

interested in collection more customer and car data, but uncertainty about how to use it is still

widespread. Meanwhile consumers are awash in easily accessible information about automobile

specifications, prices, discounts quality, and performance, giving buyers greater bargaining

power.

CHAPTER 2

COMPANY PROFILE

HISTORY OF TOYOTA

Toyota- History

Toyota founder Kiichiro Toyoda

Replica of the Toyota Model A the first production model of Toyota in 1936

The history of Toyota started in 1933 with the company being a division of Toyoda

Automatic Loom Works devoted to the production of automobiles under the direction of the

founder's son; Kiichiro Toyoda had traveled to Europe and the United States in 1929 to

investigate automobile production and had begun researching gasoline-powered engines in 1930.

Toyoda Automatic Loom Works was encouraged to develop automobile production by the

Japanese government, which needed domestic vehicle production, due to the war with China In

1934, the division produced its first, which was used in the first Model A1 passenger car in May

1935 and the G1 truck in August 1935. Production of the Model AA passenger car started in

1936. Early vehicles bear a striking resemblance to the Dodge power and Chevrolet, with some

parts actually interchanging with their American originals.

Although the Toyota Group is best known today for its cars, it is still in the textile

business and still makes automatic looms, which are now computerized and electric Sewing

machine which are available worldwide.

Toyota Motor Co. was established as an independent and separate company in 1937.

Although the founding family's name was written in the Kanji (rendered as "Toyoda"), the

company name was changed to a similar word in Katakana (rendered as "Toyota") because the

latter has 8 Stocks which is regarded as a lucky number in East Asian Culture Since Kanji are

essentially Chinese Character , in Chinese speaking markets, the company and its vehicles are

still referred to by the original Kanji name , but with Chinese pronunciation.

During the Pacific war (World War II) the company was dedicated to truck production for

the Imperial Japanese army. Because of severe shortages in Japan , military trucks were kept as

simple as possible. For example, the trucks had only one headlight in the center of the hood. The

war ended shortly before a scheduled Allied bombing run on the Toyota factories in Aichi.

Postwar growth

After World War II, Japan experienced extreme economic difficulty. Commercial passenger car

production started in 1947 with the model SA. The company was on the brink of bankruptcy by

the end of 1949, but the company eventually obtained a loan from a consortium of banks which

stipulated an independent sales operation and elimination of "excess manpower".

In June 1950, the company produced only 300 trucks and was on the verge of going out

of business. The management announced layoffs and wage reductions, and in response the union

went on a strike that lasted two months. The strike was resolved by an agreement that included

layoffs and pay reductions but also the resignation of the president at the time.KiichiroToyoda

was succeeded by Fazio Ishida, who was the chief executive of the Toyoda Automatic Loom

Company.] The first few months of the Korean war resulted in an order of over 5,000 vehicles

from the US military, and the company was revived. Ishida was credited for his focus on

investment in equipment. One example was the construction of the Motomachi Plant in 1959,

which gave Toyota a decisive lead over Nissan during the 1960s.

Global presence

Toyota began to expand in the 1960s with a new research and development facility, a

presence in Thailand was established, the 10 millionth models was produced, a Prize, and

partnerships with Hino Motors and Daihatsu were also established. The first Toyota built outside

Japan was in April 1963, at Melbourne, Australia .From 1963 until 1965, Australia was Toyota's

biggest export market. By the end of the decade, Toyota had established a worldwide presence,

as the company had exported its one-millionth unit. The first Japanese vehicles to arrive in North

America were five Land Cruisers in El Salvador in May 1953.

The first Toyotas sent to Europe were two Toys pet Tiaras sent to Finland for evaluation

in June 1962, but no sales followed. The first European importer was Erla Auto Import A/S of

Denmark, who brought in 190 Crowns following a May 1963 agreement to become the

distributor for Denmark, Norway, and Sweden. The Netherlands followed in May 1964, and after

having established toeholds in countries with little or no indigenous automobile production other

markets followed in 1966. In 1968 Toyota established its first European CKD assembler,

Salvador Caetano I.M.V.T. of Portugal. With high fuel prices and a weak US economy in mid

2008, Toyota reported a double-digit decline in sales for the month of June, similar to figures

reported by the Detroit Big Three. For Toyota, these were attributed mainly to slow sales of its

Tundra pickup, as well as shortages of its fuel-efficient vehicles such as the Prius, Corolla and

Yaris. In response, the company has announced plans to idle its truck plants, while shifting

production at other facilities to manufacture in-demand vehicles.

In January 2010, Toyota suspended sales of eight recalled vehicle models to fix

accelerator pedals with mechanical problems that could cause them to become stuck. In

December 2012, Toyota announced an agreement worth more than US$1,000 million to settle a

lawsuit involving unintended acceleration in some of its vehicles.

Toyota Motor Corporation is a Japanese automotive manufacturer headquartered in Toyota,

Aichi, Japan. In 2013 the multinational corporation consisted of 333,498 employees worldwide

and, as of November 2014, is the twelfth-largest company in the world by revenue. Toyota was

the largest automobile manufacturer in 2012 (by production). In July of that year, the company

reported the production of its 200-millionth vehicle. Toyota is the world's first automobile

manufacturer to produce more than 10 million vehicles per year. It did so in 2012 according to

OICA, and in 2013 according to company data. As of July 2014, Toyota was the largest listed

company in Japan by market capitalization Softbank and by revenue.

The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company

Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of

Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger

car, the Toyota AA. Toyota Motor Corporation produces vehicles under 5 brands, including the

Toyota brand, Hino, Lexus, Ranz, and Scion. It also holds a 51.2% stake in Daihatsu, a 16.66%

stake in Fuji Heavy Industries, a 5.9% stake in Isuzu, and a 0.27% stake in Tesla, as well as

joint-ventures with two in China (GAC Toyota and Sichuan FAW Toyota Motor), one in India

(Toyota Kirloskar), one in the Czech Republic (TPCA), along with several "nonautomotive"

companies. TMC is part of the Toyota Group, one of the largest conglomerates in the world .

Corporate governance

Principal headquarters building of Toyota

Toyota is headquartered in Toyota City, Aichi. The main headquarters of Toyota is

located in a three story building in Toyota. As of 2006 the head office has the "Toy pet" Toyota

logo and the words "Toyota Motor". The Toyota Technical Center, a 14-story building, and the

Honsha plant, Toyota's second plant engaging in mass production and formerly named the

Koromo plant, are adjacent to one another in a location near the headquarters. Vinod Jacob from

The Hindu described the main headquarters building as "modest". In 2013 company head Akio

Toyoda reported that it had difficulties retaining foreign employees at the headquarters due to the

lack of amenities in the city.

Its Tokyo office is located in Bunkyo, Tokyo. Its Nagoya office is located in Nakamura-

ku, Nagoya. In addition to manufacturing automobiles, Toyota provides financial services

through its Toyota Financial Services division, and also builds robots.

Toyota's global network:

Red - Japan

Green - Official dealership(s) present.

Blue - Localized manufacturing plant(s)

Light Blue - Regional headquarters (HQ)

Dark Blue - Regional headquarters (HQ) and localized manufacturing plants

Financial results

In 2011, the Toyota Group (including Daihatsu, Hino and Chinese joint ventures) fell to

place three with 8,050,181 units produced globally. According to an unofficial count, based on

unit production reported by major automakers, Toyota regained its top rank with 9,909,440 units

produced globally in calendar year 2012. On May 8, 2013, Toyota announced plans to produce

10.1 million units in fiscal year 2013, which, if achieved, would make it the first auto

manufacturer to cross the 10-million-unit threshold. On May 8, 2009, Toyota reported a record

annual net loss of US$4.2 billion making it the latest automobile maker to be severely affected

by the global financial crisis that started in 2007. Toyota's financial unit had asked for an

emergency loan from a state-backed lender on March 16, 2009, with reports putting the figure at

more than A$3 billion. It said the international financial situation was squeezing its business,

forcing it to ask for an emergency loan from the Japan Bank for International Cooperation. This

was the first time the state-backed bank has been asked to lend to a Japanese car manufacturer.

On May 8, 2013, Toyota Motor Corporation announced its financial results for the fiscal

year ended March 31, 2013. Net revenues totaled ¥22.0 trillion (+18.7%). Operating income was

¥1.32 trillion (+371%), net income ¥962.1 billion (+239%).

1930s

Toyota was started in 1933 as a division of Toyoda Automatic Loom Works devoted to the

production of automobiles under the direction of the founder's son, Kiichiro Toyoda. Its first

vehicles were the A1 passenger car and the G1 in 1935. The Toyota Motor Co. was established

as an independent company in 1937. In 2008, Toyota's sales surpassed General Motors, making

Toyota number one in the world.

In 1924, Saki chi Toyoda invented the Toyoda Model G Automatic Loom. The principle

of judoka, which means the machine stops itself when a problem occurs, became later a part of

the Toyota Production System. Looms were built on a small production line. In 1929, the patent

for the automatic loom was sold to a British company, generating the starting capital for the

automobile development.

1940s-1950s

From September 1947, Toyota's small-sized vehicles were sold under the name

"Toyopet". The first vehicle sold under this name was the Toyopet SA, but it also included

vehicles such as the Toyopet SB light truck, Toyopet Stout light truck, Toyopet Crown, Toyopet

Master, and the Toyopet Corona. The word "Toyopet (Japanese article)" was a nickname given

to the Toyota SA due to its small size, as the result of a naming contest the Toyota Company

organized in 1947. However, when Toyota eventually entered the American market in 1957 with

the Crown, the name was not well received due to connotations of toys and pets. The name was

soon dropped for the American market, but continued in other markets until the mid-1960s.

1960s-1970s

By the early 1960s, the US had begun placing stiff import tariffs on certain vehicles. The

so-called "chicken tax" of 1964 placed a 25% tax on imported light trucks. In response to the

tariff, Toyota, Nissan Motor Co. and Honda Motor Co. began building plants in the US by the

early 1980s.

1980s

With over 40 million sold, the Corolla is one of the most popular and best selling cars in the

world.Toyota received its first Japanese Quality Control Award at the start of the 1980s and

began participating in a wide variety of motorsports. Due to the 1973 oil crisis, consumers in the

lucrative US market began turning to small cars with better fuel economy. American car

manufacturers had considered small economy cars to be an entry-level product, and their small

vehicles employed a low level of quality to keep the price low.

In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one company, the

Toyota Motor Corporation. Two years later, Toyota entered into a joint venture with General

Motors called the New United Motor Manufacturing, Inc, NUMMI, operating an automobile-

manufacturing plant in Fremont, California. The factory was an old General Motors plant that

had been closed for two years. Toyota then started to establish new brands at the end of the

1980s, with the launch of their luxury division Lexus in 1989.

1990s

In the 1990s, Toyota began to branch out from producing mostly compact cars by adding many

larger and more luxurious vehicles to its lineup, including a full-sized pickup, the T100 (and later

the Tundra); several lines of SUVs; a sport version of the Camry, known as the Camry Solara;

and the Scion brand, a group of several affordable, yet sporty, automobiles targeted specifically

to young adults. Toyota also began production of the world's best-selling hybrid car, the Prius, in

1997.

With a major presence in Europe, due to the success of Toyota Team Europe, the corporation

decided to set up Toyota Motor Europe Marketing and Engineering, TMME, to help market

vehicles in the continent. Two years later, Toyota set up a base in the United Kingdom, TMUK,

as the company's cars had become very popular among British drivers. Bases in Indiana,

Virginia, and Tianjin were also set up. In 1999, the company decided to list itself on the New

York and London Stock Exchanges.

2000s

In 2001, Toyota's Toyo Trust and Banking merged with two other banks to form UFJ Bank,

which was accused of corruption by Japan's government for making bad loans to alleged Yakuza

crime syndicates with executives accused of blocking Financial Service Agency inspections.[35]

The UFJ was listed among Fortune Magazine's largest money-losing corporations in the world,

with Toyota's chairman serving as a director. At the time, the UFJ was one of the largest

shareholders of Toyota. As a result of Japan's banking crisis, UFJ merged with the Bank of

Tokyo-Mitsubishi to become the Mitsubishi UFJ Financial Group.

In 2002, Toyota managed to enter a Formula One works team and establish joint ventures with

French motoring companies Citroën and Peugeot a year after Toyota started producing cars in

France.Toyota ranked eighth on Forbes 2000 list of the world's leading companies for the year

2005but slid to 55 for 2011. The company was number one in global automobile sales for the

first quarter of 2008.

In 2007, Toyota released an update of its full-sized truck, the Tundra, produced in two American

factories, one in Texas and one in Indiana. Motor Trend named the Tundra "Truck of the Year",

and the 2007 Toyota Camry "Car of the Year" for 2007. It also began the construction of two

new factories, one to build the RAV4 in Woodstock, Ontario, Canada, and the other to build the

Toyota Prius in Blue Springs, Mississippi, USA. This plant was originally intended to build the

Toyota Highlander, but Toyota decided to use the plant in Princeton, Indiana, USA, instead. The

company has also found recent success with its smaller models—the Corolla and Yaris—as

gasoline prices have risen rapidly in the last few years.

2010s

In 2011, Toyota, along with large parts of the Japanese automotive industry, suffered

from a series of natural disasters. The 2011 Tahoku earthquake and tsunami led to a severe

disruption of the supplier base and a drop in production and exports. Severe flooding during the

2011 monsoon season in Thailand affected Japanese automakers that had chosen Thailand as a

production base. Toyota is estimated to have lost production of 150,000 units to the tsunami and

production of 240,000 units to the floods.

The automaker narrowly topped global sales for the first half of 2014, selling 5.1 million

vehicles in the six months ending June 30, 2014, and an increase of 3.8% on the same period the

previous year. Volkswagen AG, which recorded sales of 5.07 million vehicles, was close behind.

In August 2014, Toyota announced it would be cutting its spare-parts prices in China by up to

35%. The company admitted the move was in response to a probe foreshadowed earlier in the

month by China's National Development and Reform Commission of Toyota's Lexus spare-par

policies, as part of an industry-wide investigation into what the Chinese regulator considers

exorbitantly high prices being charged by automakers for spare parts and after-sales servicing.

Recalls

From November 2009 through 2010, Toyota recalled more than 9 million cars and trucks

window switches, the largest recall since that of Ford Motor Company in 1996. The move came

after a series of recalls between 2009 and 2011 in which it pulled back around 10 million cars

amidst claims of faulty mechanics. In March 2014, Toyota agreed to pay a fine of US$1.2 billion

for concealing information and misleading the public about the safety issues behind the recalls

on Toyota and Lexus vehicles affected by unintended worldwide in several recall campaigns, and

briefly halted production and sales . Toyota initiated the recalls, the first two with the assistance

of the U.S. National Highway Traffic Safety Administration (NHTSA), after reports that several

vehicles experienced unintended acceleration.

2012

In October 2012, Toyota announced a recall of 7.43 million vehicles worldwide to fix

malfunctioning power acceleration.

2014

In early November of 2014, Toyota USA enlisted a recall involving defective inflaters

and propellant devices that may deploy improperly in the event of a crash, shooting metal

fragments into vehicle occupants. More than 7 million vehicles are potentially affected in the

United States. This recall only effects vehicles equipped with Takata airbags released after the

year 2000 in North America. The airbags were manufactured by Takata automotive

manufacturing. Toyota is offering a free repair to all effected vehicles worldwide. The fault in

the Takata air bags also affected other North American automobile manufacturers.

TOYOTA COMPANY IN INDIA

Toyota company in India is relatively a newcomer and started its venture in Indian

markets in 1997, when it started a joint venture with kirlosakar group. this joint venture was

named as Toyota kirloskar motor private ltd and has in fact led to the establishment of a

manufacturing plant in Ramanagra district of Karnataka state. It was further strengthened with

establishment of Toyota kirloskar auto parts private ltd in 2002.currently,nine models of Toyota

belonging to various segments are under production. Toyota company is involved in various

social initiatives and has established centers for technical education in India.

Toyota manufacturing facilities

Toyota kirloskar motor private limited has established its manufacturing plant in bidadi, which is

very near to capital of the state of Karnataka ,Bangalore. As per Toyota company profile, the

facility is spread over an area of 432 acres and employees more than 4900 workers till date .

some of the cars like camry and prius are imported as completely built units , while others are

manufactured completely at plant .with the launch of new vehicles like etios and etios liva

Toyota company has experienced a steep rise in demand is expected to boost up production,

which currently stands at 80000units per year.

Toyota vehicle models

As per Toyota profile , company currently brings Land Cruiser , Prius, Camry,and Pradp as

completely built units from its overseas plants , while other models like Fortuner , Etios liva,

Etios , Corolla Altis and Innova are manufactured in India.

COMPANY PROFILE

AMANA TOYOTA – COMPANY PROFILE

Brief history of Amana Toyota

Amana Toyota, VPK Motors (P) Ltd, exclusive dealership globally renowed.Toyota was

started on 11th May 2006 under the dynamic leadership of Mr.V.P.K Abdullah at Thottada

Kannur.

It was the vision of management and the relentless efforts put in by the committed

employees that enable in the organization to distinguish itself in the region. The management has

plans to strengthen the operations and magnify the customer service goals in order to ensure that

each customer’s unique needs are addressed to their utmost satisfaction. The head quarter of

Amana Toyota, located at Calicut includes top management and other professionals from various

functions such as sale. Customer service, finance, general administration, etc.

Amana Toyota employees, partners in its success, vigorously uphold its mission

statement for every assignment. Its customers have responded tremendously to its commitment

and their support has enabled Amana Toyota offer unmatched service in six major districts

across Kerala with the entire staff of Amana sharing the version of distinctive quality and

unparallel service, undoubtedly, they are surging ahead of greater success.

2 Mission of Amana Toyota

"Setting New Standards in Customer Service"

This is the mission statement set by Amana Toyota placing customer satisfaction first,

Integrating sales with service and service parts in a single convenient location; we contribute to

speedy and efficient service, allowing customers to experience the convinces and pleasure of

owning Toyota automobile.

GOALS, VALUE AND HISTORY OF AMANA TOYOTA

The Goal of Amana Toyota is simple to provide extra ordinary customer service. They

accomplish this by taking the task and responsibities wholeheartedly. The dedicated and

competent personnel of the organization with their proven expertise are bent on delivering the

finest quality of customer service. Truly, the organization goals are accomplished through the

commitment of every employee, irrespective of the nature of the work he is entrusted to fulfill.

The management treats employee with respect and gives them an opportunity for input on how to

continually improve the sale/service goals. It is the duty and responsibility of the organization to

treat each employee fairly with mutual respect.

The company does not to tolerate discrimination of any kind are encourage all managers

and supervisors to involve employee in problems arise, the fact should be analyzed to determine

ways to avoid similar problems in future.Provide the most effective and efficient corrective

action, to resolve customer service issue, to customer satisfaction and that the problem not to be

repeated future.Foster an open door policy, which encourages interaction, discussion and ideas to

improve the environment, thus increase the productivity.Deliver competitive, impeccable service

to customers and ensure acceptance of its mission.Make “Do It Right the First Time” as a slogan

of its commitment and way of doing business. This commitment will ensure continued growth

and prosperity.

The strive and maintain its leadership position in the industry through continuous efforts

and unflinching dedication.

Different operation sections of Amana Toyota

General administration department Sales department Customer service department EDP department Maintenance department Customer relation department

ORGANIZATIONAL CHART

Details of Amana Toyota –VPK Motors PVT Ltd

CHAIRMAN

MANAGING DIRECTOR

DIRECTOR

CUSTOMER SERVICE DEPARTMENT

SALES DEPARTMENT

HR &GENERAL ADMINISTRATION DEPARTMENT

FINANCE DEPARTMENT

SERVICE MANAGER

SALES MANAGER HR MANAGER FINANCE MANAGER

HR EXEXUTIVES SALES EXECUTIVE SPARES SECTION MANGER

SHOP FOREMAN &

TECHNICIAN

TECHNICIANS

ACCOUNTANT

Name of the organization : Amana Toyota – VPK Motors (p) Ltd

Location : Thottada. P. O Kannur-670007

Telephone : 0497 3000333

0497 2835577

Fax : 0495 3000399

E-Mail : vpkmotors@sify.com

Visit us : www.amana Toyota.com

Inauguration : 21st May 2006

Products : Toyota Camry, Corolla, Innova, LC Prado, Spare parts

And Services.

No. of Employee : 213

Total Capitalization : Five Cores

Product profile

Amana Toyota and esteemed institution in Malabar region deals with luxury motor car of

Toyota kirloskar motor Limited such as Toyota, Corolla, Camry, Innova and LC Prado. They

also have spare parts of these vehicles and provide quality services. Thus the products of Amana

Toyota comprise 3S, that is, Sales, Service and Spare.

SALES

The sales of Amana Toyota include the selling of

ETIOS LIVA ETIOS ETIOS CROSS COROLLA ALTIS FORTUNER CAMRY PRIUS LAND CRUSIER PRADO

Brief descriptions of these vehicles are given below

ETIOS LIVA

Etios Liva is a Q Class Hatch, which was launched in June 2011. This car, which is

available in seven dynamic colors and four variants, is powered by a 4 cylinder 16 valve, 1197cc

BS-IV compliant engine that provides a mileage of 18.31 kmpl. The Toyota etios liva is one

of the most spacious and comfortable cars in its segment. The dual tone interior feels bright , but

material quality isn’t impressive. the hatchback The Toyota Etios Liva is one of the most

spacious and comfortable cars in its segment. The dual tone interior feels bright, but material

quality isn’t impressive. The hatchback feels comfortable and convenient from inside, though it

lacks some vital features. The engine is frugal, but in terms of power and performance it fails to

make an impact. The handling is predictable, and ride quality is decent. The driving dynamics

isn’t impressive, especially in city.

ETIOS

Launched in December 2010, Ethos is a B segment compact sedan. The car in six vibrant

colors and four variants is powered by a 1.5L, 16 valve DOHC BS-IV compliant engine that has

fuel economy of 17.6 kmpl of petrol.  Toyota Etios is an entry level sedan that is available with

diesel and petrol engine options in seven trims. Along with attractive looks, its defining

characteristics are excellent fuel economy, class-leading comfort features, smooth handling and

great performance, which makes it a high selling model in the B segment. It won Sub-Compact

Sedan of the Year (NDTV Car & Bike Awards 2011), Car of the Year and Mid Size Car of the

Year (Over Drive CNBC TV 18 Awards 2011) and Saloon Car of the Year (Bloomberg UTV

Auto Car Award 2011) awards when it was launched.

ETIOS CROSS

The crossover market is new to the Indian consumers and in given time it is expected to

gain some pace. The arrival of Toyota Etios Cross will certainly provide a good purchasing

option to prospective buyers as well as the company's vast fan following. In the price bracket of

Rs. 5.76 lakh – Rs. 7.42 lakh, the car is packed with all the necessary and modern features, which

can tempt the customers to a great extent. The diesel engine has the fuel efficiency factor,

whereas, the petrol mills also don't lag behind in terms of mileage. The unconventional looks of

Toyota Etios Cross might take some time to gain plaudits from all auto connoisseurs but in the

given time, the car has the ability to become a decent road performer.

INNOVA

Innova with its launch in February 2005 created a new segment in Indian automobile

space. The car is claimed to be India's first 3-row seating passenger luxury vehicle and remains

one of the highest selling vehicle from the company. This Toyota company car is available in

both petrol and diesel engine variants. In 2009, the CNG variants of Innova were also launched.

Toyota Innova has been the segment leader and is aiming to continue its joyful ride in the Indian

car market. With subtle changes to exterior and interior, the Innova looks attractive. Ease of

driving, high end features like reverse parking camera, chrome embellishments across the model

are few of its positive points. Well, it has to be a six-seated MPV, but keeping Indian buyers

taste in mind, the company opts for a seven and eight seat options.

COROLA ALTIS

An executive class sedan Corolla Altis has gone through minor facelifts since its launch

in 2003. A CNG variant of this car was launched in 2010 and latest of these launches occurred in

June 2011. This Toyota company car is available in petrol and diesel engine variants

Toyota Corolla Altis is an Executive sedan that is available in India in four petrol and three

diesel variants. This car is favored by buyers due to classy and elegant looks and a host of luxury

features, and is one of the highest selling models in its segment. In the Subros Car & Bike

Awards 2011, the diesel motor of Corolla Altis was judged as the Engine of the Year.

FORTUNER

Toyota Company in India launched Fortuner in August 2009. This Toyota company car is

an ultimate sports utility vehicle equipped with a 3L D-4D diesel engine and intercooler

turbocharger. Toyota Fortuner is a premium Sports Utility Vehicle (SUV) that is best known in

the country for its aggressive looks, high end luxury amenities, tremendous off-roading

capabilities and excellent ride quality. This car is available in the domestic market in 3 variants

(4WD manual, 2WD manual, 2WD automatic), with a single diesel engine option.

CAMRY

Toyota Camry has been available in India from the very beginning and has gone through

subsequent re-launches in 2005 and 2009. The 2.4 Liter 4-Cylinder VVT-I BS-IV compliant

engines, introduced for the first time in 2005 version are still continued. This premium segment

sedan is available in both manual and automatic five speed transmissions.

Toyota Camry is the luxury sedan from the Japanese auto major Toyota. Brought as a CBU in

India, the sedan carries a high price tag. However, its features justify its price to a great extent.

The sedan comes in only petrol variant in the country and in both automatic and manual

transmission options. Its sophisticated looks and classy interior makes it a premium class sedan.

Top gear awarded Toyota Camry as the best designed car of the year.

PRIUS

Toyota's acclaimed Third Generation Prius was launched in India in January 2010. This

hybrid electric car from Toyota Company in India was displayed for the first time at Auto Expo

2010 in New Delhi. Toyota New Prius is the perfect answer to the growing environmental

concerns of Indian consumers. Equipped with an electrically controlled continuously variable

transmission system, it runs on a motor that is powered by battery as well as petrol. This model

won Ista Green Award (NDTV Car & Bike Awards 2011), Green Technology of the Year

(Suborns Car & Bike India Awards 2011), Green Award of the Year (Over Drive CNBC TV 18

Awards 2011 and Bloomberg UTV Auto Car Award 2011), The Green Steering Wheel 2010

(Auto Bild), Green Car of the Year (ET Zigwheels Awards 2010).

LAND CRUISER PRADO

Toyota Land Cruiser Prado is a luxury Sports Utility Vehicle (SUV) that comes with a

diesel engine option with 4WD mechanism in India. This model is known for its body-on-frame

construction, a host of high end comfort and convenience features and unmatched capability to

tackle the roughest of terrains with utmost ease. It was the recipient of the Best Import Car of the

Year award by Business Standard Motoring in 2004.Toyota Company in India introduced Land

Cruiser Prado in November 2004. It was company's fourth major launch after Corolla, Qualis

and Camry. Like the Camry, Land Cruiser Prado was imported in India as a completely built

unit. The stylish sports utility vehicle is powered by a giant 2982cc, 16 Valve DOHC, D4-D

Diesel Engine with Intercooler Turbocharger. The vehicle has 18 inch tubeless radial tires with

all time four wheel drive, 5-speed manual transmission and includes ventilated disc brakes with

ABS and EBD. It has an unending list of comfort, security and advanced technical features that

make it an ultimate all terrain luxury sports vehicle.

Toyota Land Cruiser Prado is a luxury Sports Utility Vehicle (SUV) that comes with a diesel

engine option with 4WD mechanism in India. This model is known for its body-on-frame

construction, a host of high end comfort and convenience features and unmatched capability to

tackle the roughest of terrains with utmost ease. It was the recipient of the Best Import Car of the

Year award by Business Standard Motoring in 2004.

TOYOTA LAND CRUISER

Toyota Land Cruiser 200 is the top-of-the-line luxury Sports Utility Vehicle offered by the

Japanese car maker in India. The unmatched performance of the model is centered on its huge

4.5 L engine, full time 4WD system, TEMS suspension and 6 speed automatic transmission

systems. It excellent performance makes it the ideal vehicle to tackle adverse terrains, ranging

from forests to mountains, with utmost ease.

TOYOTA MATRIX

The 2003 Toyota matrix is a street performer that combines versatility and styling in a truly

affordable package.

MR 2 SPYDER

Toyota’s MR 2 Spyder has a mid mounted OOCHC VVT-I engine. The softtop MR 2Spyder

delivers genuine wind – in – your hair sport car performance.

TOYOTA SEQUOIA

Toyota’s full size V8 sequoia seats up to the eight and boasts enough cargo capacity, and cup

holders to make all eight happy. Given its size and structure, the sequoia is sure to exceed

customer expectations.

TOYOTA 4 RUNNER

Larger, more powerful and more capable, the completely redesigned 2003 4 Runner is

engineered to follow in the footsteps of world’s great adventures.

TUNDRA REGULAR CAB

The Toyota Tundra regular Cab offer a powerful double overhead Cam (DOHC) 32 –

Valve I –FORCE V8. It is the truck other full size pickups want to be.

TUNDRA ACCESS CAB

Toyota start with the power of regular cab, add two doors and luxuries like front fabric

captain’s chairs.

TOYOTA PUIRS

The vehicle is powered by the Toyota hybrid system (THS), prius combines a super

efficient gasoline engine with a powerful; electronic motor and prius recharges itself while it’s

being driven.

REVIEW AND LITERATURE

INTODUCTION TO PERFORMANCE APPRAISAL

ABSTRATCT

Performance appraisal has been considered as the most significant and indispensable tool

for an organization, for the information it provides is highly useful in making decisions regarding

various personnel aspects such as promotion and merit increases. Performance measures also

link information gathering and decision making process which provide a basis for judging the

effectiveness of personnel sub divisions such as recruiting, selection , training and compensation.

The major objective of the study is to study the existing performance appraisal system being

undertaken in Amana Toyota thottada, and to know the perception of employees& effectiveness

of the existing system of performance appraisal and to know the level of satisfaction of

employees.

Introduction

Appraising the performance of the individual, group and organization is a common

practice of all societies.while, in some instance these appraisal process are structured and

formally sanctioned , in other instances they are integral and informal part of daily activities..The

teacher evaluates the performance of student, banker evaluates the performance of creditors ,

parents evaluate the performance of their children and all f us consciously or unconsciously

evaluate our action fro, time to time. In mall interaction performance evaluation is domain a

haphazard an often unsystematic way. but in the organization formal programs of evaluating

employees and managerial performance conducted in a systematic and planned manner have

achieved popularity in recent years .

During and after world war 1the systematic performance appraisal was quite prominent.

Credit goes to Walter dill Scott for systematic performance appraisal technique of man to man

rating system (or merit rating ). It was used for evaluating military officers. Industrial concerns

also use this system during 1920s and 1940s for evaluating hourly paid workers . however with

the increase of training and management development programmes from 1950s management

started adopting performance appraisal for evaluating technical , skilled , professional and

managerial personnel as a part of training and managerial development programs . with this

evolutionary process , the term merit rating have been changed into employee appraisal or

performance appraisal .this is not mere change in the term but a change I the scope of activity

as the emphasis of merit rating was limited to personnel traits , whereas performance appraisal

covers result , accomplishment and performance .therefore performance appraisal enables

employee to get incentive treatment according to their potential , sincerity and capabilities .

They get motivated by which , performance appraisal benefits not only employee but

also the management in the form of greater productive efficiency . therefore , performance

appraisal , employee appraisal , performance review or ( career) development discussion is a

method by which the job performance of an employer is evaluated generally in the terms of

quality quantity , cost and time typically by the corresponding manager or supervisor .

A performance appraisal is a a part of guiding and managing career development.It is the

process of obtaining , analyzing and recording information about the relative worth of

employees to the organization.

Performance appraisal is an analysis of an employee’s recent successes and failures, personal

strength and weakness, and suitability of promotion or future training. it is also the judgment of

employees performance in a job based considerations other than productivity alone . Generally,

the aim of the performance appraisal is

Give employees feedback on performance

Identify employee training needs

Document criteria used to allocate organizational rewards

Form a basis for personnel decisions; salary increases promotions, disciplinary actions,

bonus etc.

Provide opportunities for organization diagnosis and development

Facilitate communication between employee and employer

Validate selection techniques and human resource policies to meet federal equal

employment opportunity requirements.

To improve performance through counseling, coaching ad development.

Popular methods used in performance appraisal

Self appraisal

Merit rate appraisal system

Management by objectives

360 degree appraisal.

Behavioral observation scale

Behaviorally anchored rating scale

Trait based system which rely on factors such as integrity and consciousness are also

used by businesses but have replaced primarily by more objective and result oriented

methods .the scientific literature of the subject provides evidence that accessing employees on

factors such as these should be avoided.

Performance appraisal continues to be subject matter of interest and importance to human

resource specialists. for decades ,performance appraisal has received considerable attention in

the literature ,from both researchers and practitioners alike .many others (Bernardin &klatt,1985

Posner Hardener 1989;maroney and Buckley 1992;Thomas &Bretz 1994)maintain that there is a

considerable gap between theory and practice , and that human resource specialists are not

making full use of the psychometric tools available . to support their claim these authors cite

surveys of practitioners concerning current performance appraisal method and use . Nearly 2

decades ago , Taylor and Zawacki (1976)published the first of two articles that documented

trends in performance appraisal usage among us organization . when comparing the results of

two surveys taken 5 years apart , the authors noted a remarkable shift away from what they

called collaborative approaches (e.g. MBO. BARS ) and toward the more traditional

performance appraisal techniques (graphic rating scales )Taylor and Zawacki (1984)

hypothesized that managers , responding to tne legal constraints prevalent in 1980s preferred

techniques that were defensible in court .accordingly managers tended to be more satisfied

with the objective traditional approaches ,whereas their subordinates seemed to prefer the

developmental collaborative methods thought the 1980s , researchers continued to document

performance appraisal practice . Bernadin and Klatt (1985)noted that the small firms tended to

rely heavily on trait based approaches ,while larger firms relied on a combination of trait ,

behavioral and results based technique . they noted that one in five organizations did not

give employees the opportunity to review the performance appraisal results .

In other study , Locher and Leel (1988) identified graphic rating scales(57.1%), open

ended essay (21.3%) and management by objectives (18.1%) as the most popular performance

appraisal techniques .unlike Taylor and Zawacki(1984)before them Locher and Teel identified a

trend towards the use of MBO as a popular technique . besides recording current trends in

methods used, only a few researchers have clarified how performance appraisal data is used. they

identifies the main developmental uses as improving work performance ,communicating

expectations, determining employee potential and aiding employee counseling.

“Performance appraisal is the systematic evaluation of the individual with regard to his

or her performance on the job and their potential for development”. BEACH

According to DALE YODGER “performance appraisal to all formal procedures aimed working

organization to evaluate personalities and contribution of one potential group members.”

EDWIN B FLIPPO, defined the term performance appraisal as “ a systematic , periodic and so

far homely possible , an impartial rating of an employees excellence in matters pertaining to his

present to his present job and his personalities for a better job”.

According to JOHN A SHUBIN defined as “merit rating is a systematic appraisal of the

employees’ personality and performance on the job and is designed to determine his contribution

and relative worth to the firm”.

In the words of L A LARKIN, “performance appraisal is the systematic assessment by

merit factors of the behavior and/or ability of workers in their work and a means whereby each

worker may be rewarded a percentage in addition to his wage according to his assessed merit

value .”

ALFORD AND BEATTY, says “it is the evaluation or appraisal of the relative worth to the

company of am man’s service on job .”

FLIPPER says , “ performance appraisal is a systematic , periodic and so far as humanly

possible and impartial rating of employees excellence of matters pertaining to his potentialities

for a better job .”

Performance appraisal has been defined in many ways .the simplest way to understand

the meaning the meaning of performance appraisal is as follows ;“ a regular and continuous

evaluation of quality , quantity and style of the performance along with the assessment of the

factors influencing the performance and behavior of an individual’s called performance

appraisal”.

Cleveland, Murphy and Williams (1989) argued that there is relation between organizational

characteristics and the uses of a performance appraisal system stonich (1984) also argued that

performance measurement in an organization should be in tune with its structure and culture .

since the nature of the enterprise in which each industry is engaged varies , its organizational

type business policy internal and external environment are also usually different .

Apart from organizational control .ilgen ,barnes Farrell,and mc kellin (1993)

concluded , from their extensive review of literature since 1980s about performance appraisal ,

that there are four aspects that need to be considered . in practice performance appraisal systems

covers a wide range of these aspects and seldom have exactly the same nature and functions . in

order to integrate findings in the area . chu (2002) proposed a comprehensive framework

including 6 categories namely appraisal purposes , appraisal personnel, appraisal criteria ,

appraisal methods , appraisal timings and appraisal feedback .

Performance appraisal and job satisfaction

Different theories may help to understand the relation between performance

appraisal and job satisfaction..Research in cognitive psychology shows that measurable and

challenging goals help to align individuals and companies goals leading to higher levels of

motivation and hence,employees’s work effort .furthermore ,goal setting theory implies that the

level of goal achievement is closely related to employee satisfaction . frequently organizations

link goal achievement to remuneration system such as performance related pay .studies have

shown that performance related pay is associated with high levels of overall job satisfaction

(Heywood &wei,2006),( Green &Heywood 2008) in a recent paper Bryson (2012)empirically

investigate the relation between piece rate , team incentive and or profit sharing schemes and

job satisfaction and show that workers under PRP scheme are more satisfied with their job ,

controlling for wage levels as well as individual ,business and country fixed affects .

Research has broadly analyzed the impact thof the social context of performance

appraisals or employee reaction to these appraisals (Levy &William (2004) (Pichler 2012)

One dimension focuses on the rate relationship comprising topics such as supervisors

support , trust , rating accuracy ,and reliability as a precondition for the acceptance and

usefulness of formal appraisal systems . Rating situations, which are very prominent in the

organization (Kane, 1995) , lead to less acceptance among employees and decrease the

economic incentives to provide effort (Prendergast & Topel, 1996). These rating distortions may

have any different reasons including strategic incentives of the raters such as favoritisms or

punishment, (Poon , 2004) or interpersonal motives .

Furthermore, it has been shown that rater’s personality traits influence overall rating

decisions (Kryzystofiak , 1988). Other contextual factors include instance , employees

satisfaction with the PA process as a whole , the performance appraisal feedback or employee

evaluation of the perceived quality , justice , fairness of the performance appraisal regime

( Green berg 1996). Furthermore employee participation in PA process is positively related to the

satisfaction with the PA system, perceived fairness and acceptance of such a practice

USES OF PERFORMANCE APRAISAL SYSTEM

Performance improvement. Performance feedback allows the employee, managers,

personal specialists to intervene with appropriate action to improve performance .

Compensation adjustment: performance evaluation help the decision makers determine

who should receive pay raises.

Placement decisions: promotion, transfers and demotions are usually based on part or

anticipated uses.

Career planning and development.

Staffing process deficiencies.

Informational in accuracies.

Job design and error s- poor performance may be a symptom of ill- conceived job design.

Equal employment opportunity.

External challenges.

Feedback to human resources.

PROBLEMS OF PERFORMANCE APPRAISAL

Rating bias

Failures of superior in conducting performance appraisal interview .

Most part of the performance is based on the subjectivity.

Less reliability and validity of the performance appraisal techniques.

ERRORS IN PERFORMANCE APPRAISAL

The halo effect or event .

Leniency or constant errors.

The centre tendency problem.

Similarity error .

Miscellaneous biases.